Namibia’s Exchange Control Policies Conducive for the Oil and Gas Sector

Namibia’s Exchange Control Policies and Laws remain supportive of the nascent oil and gas sector and are designed to promote a favourable investment environment for foreign direct investments (FDIs) while ensuring the smooth operation of economic activities within this sector.

Namibia’s exchange control legislative regime allows foreign investors to bring in and externalise their own funds through commercial banks. This flexibility ensures that foreign direct investments, particularly in exploration and other capital-intensive projects, can be introduced freely into Namibia via standard commercial banking channels. Moreover, foreign investors as per the Exchange Control Legislative Framework, can repatriate profits, dividends, and reimbursements to no-resident shareholders and/or owners, subject to compliance with minimum requirements e.g. laws administered by NAMRA. Both the Namibia’s Exchange Policy and Law underscores Namibia's commitment to providing a secure and attractive environment for international investors.

A significant advantage for oil and gas companies operating in Namibia is the exemption from currency conversion requirements. Foreign currency introduced into Namibia can be maintained in Foreign Currency-Denominated Accounts (FCDA) within local commercial banks for an indefinite period. This allows companies the discretion to use these funds for foreign liabilities without the obligation to convert funds held in FCDAs, to local currency. In the event of disinvestment, foreign investors are free to repatriate the capital introduced into Namibia without restrictions, ensuring that investors retain full control over their investments and capital.