Fishing Rights Business

Namibianization and Foreign Ownership in Namibia’s Fishing Industry: Striking a Balance for Sustainable Development

BySylvester Muyeghu May 20, 2023November 27, 2023

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Namibianization and Foreign Ownership in Namibia‘s Fishing Industry: Striking a Balance for Sustainable Development

This blog post delves into the concept of Namibianization and explores how foreign ownership is accommodated within the framework, emphasizing the importance of balancing local participation and foreign investment for the country’s overall development.

Namibia‘s fishing industry is not only a vital source of livelihood and economic growth but also plays a crucial role in the conservation and sustainable management of marine resources. To ensure the equitable distribution of benefits and foster onshore development, Namibia has implemented a policy known as “Namibianization.”

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Namibianization:

Empowering Namibians in the Fishing Industry Namibianization is a key aspect of Namibia‘s fisheries policy, aiming to secure increasing benefits for Namibians and promote onshore development. The policy prioritizes Namibian citizens and businesses in the granting of fishing rights and allocation of quotas. Here’s what you need to know:

1.1 Priority for Namibians:

• The policy gives preference to Namibians and Namibian businesses in accessing fishing rights and quotas, ensuring local participation and economic empowerment.

1.2 Scope for Foreign Investment:

• While the focus is on Namibianization, provisions exist for foreign investment through joint ventures or wholly owned foreign ventures.

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Foreign Ownership: Opportunities and Conditions

Namibia recognizes the potential value of foreign investment in the fishing industry. Foreign investors interested in participating in fishing ventures must adhere to certain conditions and contribute to the country’s economic and overall development:

2.1 Cooperation through Joint Ventures:

• Foreign investors are expected to cooperate with Namibian businesses through joint ventures, fostering knowledge transfer, skill development, and technology exchange.

2.2 Wholly Foreign-Owned Ventures:

• In exceptional cases, wholly foreign-owned ventures may be granted fishing rights if they meet specific criteria, including:
  • Demonstrating a significant contribution to Namibia‘s economic and overall development.
  • Presenting an appropriate plan for Namibianization of the business, ensuring long-term benefits for the local population.

New and Existing Joint Ventures:

Considerations for Rights Allocation When it comes to joint ventures, Namibian partners and their participation are given priority:

3.1 New Joint Ventures:

• Applications for new joint ventures should be based on the expectation that fishing rights will be granted to the Namibian participants in the venture, reinforcing local involvement and ownership.

3.2 Existing Joint Ventures:

• For existing joint ventures, preference is given to applications from Namibian partners, taking into account the level of ownership and control by Namibian interests.
• In some cases, fishing rights may be granted to the existing joint venture right holders, provided it can be demonstrated that the joint venture benefits both the business and Namibia.

Insightful Analysis:

Namibianization strikes a delicate balance between empowering Namibians and allowing foreign investment in the fishing industry. By prioritizing local participation, knowledge transfer, and economic development, Namibia ensures that its marine resources are sustainably managed for the benefit of present and future generations.