Doing Business 2018 Namibia Economy Pro le of Namibia Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Namibia Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Namibia Income Category Upper middle income 106 Population 2,479,713 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 4,620 0 100 59.94 City Covered Windhoek DB 2018 Distance to Frontier (DTF) 0 100 77.54: Mauritius (Rank: 25) 64.94: Botswana (Rank: 81) 64.89: South Africa (Rank: 82) 59.94: Namibia (Rank: 106) 58.94: Malawi (Rank: 110) Page 3   50.43: Regional Average (Sub­Saharan Africa) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Namibia Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Namibia Income Category Upper middle income 106 Population 2,479,713 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 4,620 0 100 59.94 City Covered Windhoek DB 2018 Distance to Frontier (DTF) 0 100 77.54: Mauritius (Rank: 25) 64.94: Botswana (Rank: 81) 64.89: South Africa (Rank: 82) 59.94: Namibia (Rank: 106) 58.94: Malawi (Rank: 110) 50.43: Regional Average (Sub­Saharan Africa) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Namibia 1 28 59 55 68 68 79 82 89 Rank 107 109 123 132 136 163 172 175 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Namibia 100 78.12 80 74.52 68.90 66.10 60.00 61.47 61.58 60 53.33 DTF 38.35 37.04 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:+5.55 Change:-0.23 Change:+0.03 Permits Change:0.00 Change:0.00 Change:+0.05 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:+5.55 Change:-0.23 Change:+0.03 Permits Change:0.00 Change:0.00 Doing Business 2018 Namibia Change:+0.05 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Namibia Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement NAD 0 City Covered Windhoek Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Procedure – Men (number) 10 7.6 4.9 1.00 (New Zealand) Time – Men (days) 66 24.0 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 11.3 49.9 3.1 0.00 (United Kingdom) Procedure – Women (number) 10 7.7 4.9 1.00 (New Zealand) Time – Women (days) 66 24.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 11.3 49.9 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 25.6 8.7 0.00 (113 Economies) Figure – Starting a Business in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.00: Mauritius (Rank: 40) 79.97: South Africa (Rank: 136) 76.82: Regional Average (Sub-Saharan Africa) 76.43: Malawi (Rank: 152) 76.22: Botswana (Rank: 153) 68.90: Namibia (Rank: 172) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Namibia – Procedure, Time and Cost Time Cost 12 60 10 ost (% of income per capita) 50 8 40 Time (days) 6 30 4 20 Page 6   starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Namibia Figure – Starting a Business in Namibia – Procedure, Time and Cost Time Cost 12 60 10 Cost (% of income per capita) 50 8 40 Time (days) 6 30 4 20 10 2 0 0 1 2 3 4 5 6 7 *8 9 * 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Reserve a unique company name 18 days included in the cost Agency : Business and Intellectual Property Authority of registration Company name search and reservation is done at the Registrar of Companies within the Ministry of Trade and Industry. If the proposed name is acceptable, it will be reserved for 60 days. The Registrar of Companies is working on an online service platform, and the system is in phase 1. 2 Pay the registration fees and buy revenue stamps at the Receiver of 1 day ND 230 - ND 250 Revenue Agency : Receiver of Revenue Annual duty varies depending on number of shares per Companies Act. The fee is ND 4 per 10,000 share capital and ranges between a minimum fee of ND 80 and maximum fee of ND 100. There is also a stamp duty of ND 100 to buy the annual return form CM23. Subject to the provisions of Section 10 (1) (a) and (b) of the Companies Act, fees, additional fees, annual duty, or other moneys payable to the Registrar, may, except where otherwise provided in these regulations, be paid to any receiver of revenue. Proof of payment of such fees, additional fees, annual duty, or other moneys must be a xed to the relevant form or document by spreading adhesive paste or glue over the entire surface of the reverse side of the acknowledgement of receipt form. Fees for inspection or copies of documents may be paid on an account, subject to such conditions as the Registrar may stipulate. 3 Hire an attorney to register the company with the Business and 14 days about ND 5,750+Page 7   ND (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Namibia Details – Starting a Business in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Reserve a unique company name 18 days included in the cost Agency : Business and Intellectual Property Authority of registration Company name search and reservation is done at the Registrar of Companies within the Ministry of Trade and Industry. If the proposed name is acceptable, it will be reserved for 60 days. The Registrar of Companies is working on an online service platform, and the system is in phase 1. 2 Pay the registration fees and buy revenue stamps at the Receiver of 1 day ND 230 - ND 250 Revenue Agency : Receiver of Revenue Annual duty varies depending on number of shares per Companies Act. The fee is ND 4 per 10,000 share capital and ranges between a minimum fee of ND 80 and maximum fee of ND 100. There is also a stamp duty of ND 100 to buy the annual return form CM23. Subject to the provisions of Section 10 (1) (a) and (b) of the Companies Act, fees, additional fees, annual duty, or other moneys payable to the Registrar, may, except where otherwise provided in these regulations, be paid to any receiver of revenue. Proof of payment of such fees, additional fees, annual duty, or other moneys must be a xed to the relevant form or document by spreading adhesive paste or glue over the entire surface of the reverse side of the acknowledgement of receipt form. Fees for inspection or copies of documents may be paid on an account, subject to such conditions as the Registrar may stipulate. 3 Hire an attorney to register the company with the Business and 14 days about ND 5,750+ ND Intellectual Property Authority and obtain the certi cate of 556 notary fees incorporation and the certi cate of business commencement Agency : Business and Intellectual Property Authority Section 63 of the Companies Act stipulates that the memorandum and articles of association must be led and uplifted by a subscriber or by a local accountant or company attorney. The following documents must be led for the registration and incorporation of a company: - The original and two notarized copies of the memorandum and articles of incorporation referred to in regulations 17 and 18, bound as prescribed in regulation 4 (1) - Form CM5: Application for Reservation of Name or Shortened Form or Defensive Name, containing particulars of the name reserved for a company, as approved by the Registrar, together with other forms, if any, containing particulars of the shortened form of the name of the company, as approved by the Registrar (ND 50) - Form CM22: Notice of Registered O ce and Postal Address of Company, containing a notice of the company’s registered o ce and postal address within the geographical boundaries of Namibia (ND 10) - A power of attorney, signed by the subscribers to the memorandum, in favor of the person ling the documents - Form CM29: Contents of Register of Directors, Auditors, and O cers (ND 10) - Form CM31: Notice of, Consent to Appointment, Change of Name, or Resignation by Auditor or Removal of Auditor, containing the acceptance of Page 8   appointment of an auditor (ND 10) documents may be paid on an account, subject to such conditions as the Doing Registrar Business may stipulate. 2018 Namibia 3 Hire an attorney to register the company with the Business and 14 days about ND 5,750+ ND Intellectual Property Authority and obtain the certi cate of 556 notary fees incorporation and the certi cate of business commencement Agency : Business and Intellectual Property Authority Section 63 of the Companies Act stipulates that the memorandum and articles of association must be led and uplifted by a subscriber or by a local accountant or company attorney. The following documents must be led for the registration and incorporation of a company: - The original and two notarized copies of the memorandum and articles of incorporation referred to in regulations 17 and 18, bound as prescribed in regulation 4 (1) - Form CM5: Application for Reservation of Name or Shortened Form or Defensive Name, containing particulars of the name reserved for a company, as approved by the Registrar, together with other forms, if any, containing particulars of the shortened form of the name of the company, as approved by the Registrar (ND 50) - Form CM22: Notice of Registered O ce and Postal Address of Company, containing a notice of the company’s registered o ce and postal address within the geographical boundaries of Namibia (ND 10) - A power of attorney, signed by the subscribers to the memorandum, in favor of the person ling the documents - Form CM29: Contents of Register of Directors, Auditors, and O cers (ND 10) - Form CM31: Notice of, Consent to Appointment, Change of Name, or Resignation by Auditor or Removal of Auditor, containing the acceptance of appointment of an auditor (ND 10) - Form CM46: Application and Certi cate to Commence Business (ND 60 plus annual duty) - Form CM1: Certi cate of Incorporation of a Company Having a Share Capital - Form CM2: Memorandum of Association of a Company Having a Share Capital. Proof of payment of the registration fee under Section 63 (2) of the Companies Act must be a xed to the original Form CM2 (ND 100) - CM47: Statement by Each Director Regarding Adequacy of Capital of Company. This is a statement, as prescribed by Section 172(3)(a) of the Companies Act, of the opinion of each director to the e ect that the capital of the company is adequate for the company’s purpose and its business, or, if the director believes that it is inadequate, the reasons and the manner in which and the sources from which the company is to be nanced and the extent thereof. (ND 25) The Business and Intellectual Property Authority automatically forwards a copy of the memorandum and articles of association to the Receiver of Revenue, which in turns registers the company as a taxpayer and issues a tax identi cation number. Taxation of 33% of all pro t is payable to the Receiver of Revenue. 4 Deposit the initial capital in a bank account 1 day no charge Agency : Bank The funds for the initial capital deposit must be paid into a bank account. - Authorized share capital: 4,000 ordinary shares of ND 1 each. - Issued share capital: 100 ordinary shares of ND 1 each. No legal requirements are mandated for the minimum startup capital for a private company. 5 Receive re and health inspection 1 day no charge Page 9   tax identi cation number. Taxation of 33% of all pro t is payable to the Doing Receiver Businessof Revenue. 2018 Namibia 4 Deposit the initial capital in a bank account 1 day no charge Agency : Bank The funds for the initial capital deposit must be paid into a bank account. - Authorized share capital: 4,000 ordinary shares of ND 1 each. - Issued share capital: 100 ordinary shares of ND 1 each. No legal requirements are mandated for the minimum startup capital for a private company. 5 Receive re and health inspection 1 day no charge Agency : Municipality The company should not apply for a town planning certi cate unless it is the owner of the premises. Companies must have a registered address in Namibia and must apply to receive re and health inspection in order to obtain the certi cate for tness prior to the commencement of business operations. Local Authorities Act gives Municipalities authority to regulate, though Fire Regulations and Healthy Regulations, that the municipal re chief and healthy division should inspect the business premises for safety and health of working environment. The municipality carries out municipal inspection and approves business premise occupancy after reviewing applications for receiving health and re inspection. The inspector typically conducts inspection no later than the second day of application receipt. 6 Obtain the certi cate of tness from the local municipality 1 day ND 47.00 to ND 350 Agency : Municipality depending on the type of business Upon satisfactory inspection of the company premises, the inspector provides the entrepreneur with a letter stating that the workplace has successfully passed inspection. The entrepreneur then returns to the local municipality in order to obtain the certi cate of tness with this proof. The certi cate is annually renewable. According to the “Healthy Regulation (Inspection Fees for Premises)” by Department of Economic Development & Environment Division: Health Services, the fees for formal non-food premises (per annum) per Schedule C (c A) (iii) is ND 172.17 of tari plus ND 25.83 VAT, which is equal to a total of ND 198. 7 Register for VAT with the Receiver of Revenue at the Ministry of Finance 9 days no charge Agency : Receiver of Revenue at the Ministry of Finance Any person, as de ned by the law, who has carried on a taxable activity on or since November 27, 2000, and whose taxable turnover in any 12 month period exceeds or is likely to exceed ND 200,000 must register for VAT. The applicant submits Form VAT I to the Receiver of Revenue at the Ministry of Finance and receives the registration number within 1–4 weeks depending on the application date. The VAT number once issued is validated at the beginning of the month following the month of application. Manufacturing companies must register for VAT. It is not compulsory for other types of businesses to register for VAT if their pro t is less than ND 500,000. In order to register for VAT, the company must have a local bank account and a certi cate of tness. 8 Register for Pay-As-You-Earn (PAYE) tax with the Receiver of Revenue 4 days no charge Agency : Receiver of Revenue at the Ministry of Finance (simultaneous with previous The registration for pay-as-you-earn tax is separate from registration for procedure) VAT, but both are registered by the Receiver of Revenue at the Ministry of Finance. Page 10   9 Register employees with the Social Security Commission 21 days ND 10 per employee 500,000. In order to register for VAT, the company must have a local bank Doing account a certi cate and2018 Business of tness. Namibia 8 Register for Pay-As-You-Earn (PAYE) tax with the Receiver of Revenue 4 days no charge Agency : Receiver of Revenue at the Ministry of Finance (simultaneous with previous The registration for pay-as-you-earn tax is separate from registration for procedure) VAT, but both are registered by the Receiver of Revenue at the Ministry of Finance. 9 Register employees with the Social Security Commission 21 days ND 10 per employee Agency : Social Security Commission A percentage of 1.8% is deducted from the basic salary of all employees, shared on a 50/50 basis by the employee (0.9%) and employer (0.9%), with a maximum of ND 81 and a minimum of ND 2.70. The gures re ect the social security contribution of 0.9% on minimum payroll of ND 300 and maximum payroll of ND 9000. SCC has a computerized system in place. The workers will receive one social security card (one card per person) via post after as a con rmation in about 1 month. Register employees with the Workmen’s Compensation Commission 20 days no charge 10 Agency : Workmen’s Compensation Commission (simultaneous with procedure 9) The employer must le an application with the Workmen's Compensation Commission for all employees earning less than ND 72,000 a year, with special circumstances for those employees earning above that amount. The annual amount payable is based on a wage rate scale and on the company industry. Registration types are divided into farming (agriculture) and con rming companies. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering Page 11   information Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Namibia Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 12   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Namibia Standardized Warehouse Estimated value of warehouse NAD 3,035,383.80 City Covered Windhoek Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Procedures (number) 12 14.8 12.5 7.00 (Denmark) Time (days) 160 147.5 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 2.5 9.9 1.6 0.10 (5 Economies) Building quality control index (0-15) 6.5 8.0 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.45: Mauritius (Rank: 9) 72.27: Botswana (Rank: 59) 67.53: South Africa (Rank: 94) 66.10: Namibia (Rank: 107) 59.22: Malawi (Rank: 144) 56.91: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Namibia – Procedure, Time and Cost Time Cost 160 1.8 140 1.6 Cost (% of warehouse value) 1.4 120 1.2 100 Time (days) 1 80 0.8 60 0.6 40 0.4 20 0.2 0 0 1 2 *3 *4 *5 6 7 8 9 10 11 12 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 13   component indicators. Doing Business 2018 Namibia Figure – Dealing with Construction Permits in Namibia – Procedure, Time and Cost Time Cost 160 1.8 140 1.6 Cost (% of warehouse value) 1.4 120 1.2 100 Time (days) 1 80 0.8 60 0.6 40 0.4 20 0.2 0 0 1 2 *3 *4 *5 6 7 8 9 10 11 12 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Namibia and comparator economies – Measure of Quality 16 14.0 14 12 10.5 11.0 9.5 Index score 10 8.0 8 6.5 6 4 2 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Dealing with Construction Permits in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify with the Town Planning Department if the land is in the 1 day no charge appropriate zoning area Agency : Town Planning Department of the City of Windhoek A computerized system stores the use of every piece of land and is accessible by all agencies. The check can be conducted either on the telephone or in person. 2 Request and obtain results of geo-technical study 25 days NAD 50,000 Agency : Private companies While a soil test is not speci cally provided for in the Building regulations, in practice professionals will request a soil test before designing the Page 14   Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Doing Business 2018 Namibia Details – Dealing with Construction Permits in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify with the Town Planning Department if the land is in the 1 day no charge appropriate zoning area Agency : Town Planning Department of the City of Windhoek A computerized system stores the use of every piece of land and is accessible by all agencies. The check can be conducted either on the telephone or in person. 2 Request and obtain results of geo-technical study 25 days NAD 50,000 Agency : Private companies While a soil test is not speci cally provided for in the Building regulations, in practice professionals will request a soil test before designing the foundation plans. 3 Request and obtain a topographic survey of the land plot 7 days NAD 10,000 Agency : Private land surveying companies A topographic map is not a legal requirement to obtain a building permit. However, in practice it is needed by the professionals to design the building plans. 4 Obtain clearance from the Electrical Department 1 day no charge Agency : Electrical Department of the City of Windhoek 5 Obtain clearance from the Department of Infrastructure, Water and 1 day no charge Wastewater Management Agency : Department of Infrastructure, Water and Wastewater Management of the City of Windhoek 6 Request a building permit from the Building Control Division of the City 60 days NAD 11,000 of Windhoek Agency : Building Control Division of the City of Windhoek The application should be accompanied by the architectural plans. BuildCo submits all the information to the Building Control Division. This division then forwards the information to the relevant agencies -- to the departments of re and safety, architecture, road planning (storm water and transportation policy), town planning (to comply with the maximum land coverage requirements), health (ventilation, windows, and air), roads construction, and water and sewerage. Each agency stamps the architectural plans to indicate that they are cleared. In practice, the applicant goes to the Building Control Division only. Additional documents may be requested. If done in person, approvals could be received within 4 days. The applicant receives a building permit and one stamped copy of the architectural plans. For complex projects it is common to hold informal consultations with the approving authorities to make sure that the architectural plans are in order prior to the formal submission of the building permit application. Page 15   Agency : Department of Infrastructure, Water and Wastewater Management of the City of Windhoek Doing Business 2018 Namibia 6 Request a building permit from the Building Control Division of the City 60 days NAD 11,000 of Windhoek Agency : Building Control Division of the City of Windhoek The application should be accompanied by the architectural plans. BuildCo submits all the information to the Building Control Division. This division then forwards the information to the relevant agencies -- to the departments of re and safety, architecture, road planning (storm water and transportation policy), town planning (to comply with the maximum land coverage requirements), health (ventilation, windows, and air), roads construction, and water and sewerage. Each agency stamps the architectural plans to indicate that they are cleared. In practice, the applicant goes to the Building Control Division only. Additional documents may be requested. If done in person, approvals could be received within 4 days. The applicant receives a building permit and one stamped copy of the architectural plans. For complex projects it is common to hold informal consultations with the approving authorities to make sure that the architectural plans are in order prior to the formal submission of the building permit application. According to the fee schedule, for a 1,300.6 sq. m. building BuildCo would qualify into category "Buildings exceeding 1,000 sq. m. but not exceeding 2000 sq. m. and comprising less than three oors". The base tari is NAD 11,000.00. 7 Request and receive inspection to pass foundations 2 days NAD 200 Agency : Building Control Division of the City of Windhoek There are phased inspections in Windhoek. Upon obtaining the building permit BuildCo will receive a schedule of inspections. Noti cation is done on special forms; however it can be done via fax. The inspector conducts the inspection on the same day or the following day. Upon concluding the inspection, the inspector signs the notice. BuildCo keeps it as proof that the inspection took place. 8 Request and receive inspection to pass damp-proof course (DPC) 2 days NAD 200 Agency : Building Control Division of the City of Windhoek There are phased inspections in Windhoek. Upon obtaining the building permit BuildCo will receive a schedule of inspections. Noti cation is done on special forms; however it can be done via fax. The inspector conducts the inspection on the same day or the following day. Upon concluding the inspection, the inspector signs the notice. BuildCo keeps it as proof that the inspection took place. 9 Request and receive open sewer inspection 2 days NAD 200 Agency : Building Control Division of the City of Windhoek There are phased inspections in Windhoek. Upon obtaining the building permit BuildCo will receive a schedule of inspections. Noti cation is done on special forms; however it can be done via fax. The inspector conducts the inspection on the same day or the following day. Upon concluding the inspection, the inspector signs the notice. BuildCo keeps it as proof that the inspection took place. After this inspection, there can be an inspection on drains when they are ready for the nal inspection. Page 16   inspection, the inspector signs the notice. BuildCo keeps it as proof that the Doing inspection Business took 2018place. Namibia 9 Request and receive open sewer inspection 2 days NAD 200 Agency : Building Control Division of the City of Windhoek There are phased inspections in Windhoek. Upon obtaining the building permit BuildCo will receive a schedule of inspections. Noti cation is done on special forms; however it can be done via fax. The inspector conducts the inspection on the same day or the following day. Upon concluding the inspection, the inspector signs the notice. BuildCo keeps it as proof that the inspection took place. After this inspection, there can be an inspection on drains when they are ready for the nal inspection. 10 Request and receive water connection 60 days NAD 2,970 Agency : Department of Infrastructure, Water and Wastewater Management of the City of Windhoek The request for water connection is made at the Department of Infrastructure, Water & Waste Water Management. Usually there is no inspection required, unless the location of the building is in an area where is no service readily available. 11 Receive nal inspection by the Building Control Division 1 day NAD 200 Agency : Building Control Division of the City of Windhoek When BuildCo is ready to receive the nal inspection, it submits a notice of completion of the building. Upon concluding the inspection, the inspector signs the notice. BuildCo keeps it as proof that the inspection took place. 12 Obtain completion certi cate 7 days no charge Agency : City of Windhoek The completion certi cate is issued within one week after the nal inspection. BuildCo collects it from the City of Windhoek. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Namibia – Measure of Quality Answer Score Building quality control index (0-15) 6.5 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online. 1.0 Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) engineer. Quality control during construction index (0-3) 1.0 What types of inspections (if any) are required by law to be carried out during Inspections at 1.0 Page 17   construction? (0-2) various phases. Takes place simultaneously with previous procedure. Doing Business 2018 Namibia Details – Dealing with Construction Permits in Namibia – Measure of Quality Answer Score Building quality control index (0-15) 6.5 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online. 1.0 Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) engineer. Quality control during construction index (0-3) 1.0 What types of inspections (if any) are required by law to be carried out during Inspections at 1.0 construction? (0-2) various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction; Mandatory inspections are done most of the time during construction. Quality control after construction index (0-3) 2.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 0.5 Which parties (if any) are held liable by law for structural aws or problems in the Construction 0.5 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Page 18   Which parties (if any) are held liable by law for structural aws or problems in the Construction 0.5 building Doing once it is Business in use (Latent 2018 NamibiaDefect Liability or Decennial Liability)? (0-1) company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 0.0 What are the quali cation requirements for the professional responsible for verifying University 0.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering. What are the quali cation requirements for the professional who supervises the There are no 0.0 construction on the ground? (0-2) speci c requirements. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Page 19   Tools to restore power supply (0–1) The monthly consumption: construction on the ground? (0-2) speci c requirements. Doing Business 2018 Namibia Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 20   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Namibia Standardized Connection Price of electricity (US cents per kWh) 19.1 Name of utility City of Windhoek City Covered Windhoek Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Procedures (number) 6 5.3 4.7 2 (United Arab Emirates) Time (days) 37 115.3 79.1 10 (United Arab Emirates) Cost (% of income per capita) 343.7 3737.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 6 0.9 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.03: Mauritius (Rank: 51) 78.12: Namibia (Rank: 68) 63.21: South Africa (Rank: 112) 59.38: Botswana (Rank: 124) 45.91: Regional Average (Sub-Saharan Africa) 43.43: Malawi (Rank: 166) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Namibia – Procedure, Time and Cost Time Cost 400 35 350 30 Cost (% of income per capita) 300 25 250 Time (days) 20 200 15 150 10 100 5 Page 21   50 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Namibia Figure – Getting Electricity in Namibia – Procedure, Time and Cost Time Cost 400 35 350 30 Cost (% of income per capita) 300 25 250 Time (days) 20 200 15 150 10 100 5 50 0 0 1 2 3 4 *5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Namibia and comparator economies – Measure of Quality 7 6 6 6 5 Index score 4 3 2 0.9 1 0 0 0 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Getting Electricity in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Hire licensed electrical contractor registered with utility 1 calendar day NAD 0 Agency : Electrical Contractor For all service connections, including connections up to 3 x 60 amp need a licensed electrical contractor registered with the utility to apply for a new electricity connection on behalf of the customers. 2 Submit application to City of Windhoek and await estimate 6 calendar days NAD 0 Agency : City of Windhoek Application cannot be submitted online. It has to be submitted to the o ce the Strategic Executive – Electricity. The application form is free of charge, and has be to submitted along with a on-scale site plan, clearly indicating the Page 22   Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Doing Business 2018 Namibia Details – Getting Electricity in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Hire licensed electrical contractor registered with utility 1 calendar day NAD 0 Agency : Electrical Contractor For all service connections, including connections up to 3 x 60 amp need a licensed electrical contractor registered with the utility to apply for a new electricity connection on behalf of the customers. 2 Submit application to City of Windhoek and await estimate 6 calendar days NAD 0 Agency : City of Windhoek Application cannot be submitted online. It has to be submitted to the o ce the Strategic Executive – Electricity. The application form is free of charge, and has be to submitted along with a on-scale site plan, clearly indicating the position of the main board, as well as the schematic lay out of the main circuitry. Up to date cadastral plans and aerial view photos are available with the utility, and from these pretty good estimates for lengths of cables can be done. In some cases where uncertainties exist, a site visit may be arranged. 3 Receive estimate, register as customer and await external works 5 calendar days NAD 208,253.18 Agency : City of Windhoek Costs include network contribution (revised annually and based on the total cost to install a 200 KVA mini substation; cost of cables; trenching; breaker; accessories; installation; administration fee; and contingencies.) The electrical contractor must register the customer in a book with the Department of Electricity with proof of payment and additional information such as ERF number, contractor name and address 4 Receive external works from City of Windhoek 18 calendar days NAD 0 Agency : City of Windhoek 5 Purchase transformer and main board and have electrical contractor 2 calendar days NAD 385 install meter Agency : Customer Current Transformers (CT) for the meter have to be purchased by the customer, and the meter installation is done by the electrical contractor. 6 Request and receive inspection and certi cation of installation and 7 calendar days NAD 0 turn-on of electricity Agency : City of Windhoek Takes place simultaneously with previous procedure. Details – Getting Electricity in Namibia – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.8 Page 23   Takes place simultaneously with previous procedure. Doing Business 2018 Namibia Details – Getting Electricity in Namibia – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.8 System average interruption frequency index (SAIFI) 0.2 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.windhoe kcc.org.na/info_tari s.php Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 24   What the indicators measure Case study assumptions If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Namibia Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value NAD 3,035,383.80 City Covered Windhoek Page 25   Sub-Saharan OECD high Doing Business 2018 Namibia Standard Property Transfer Property value NAD 3,035,383.80 City Covered Windhoek Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Procedures (number) 8 6.2 4.6 1.00 (4 Economies) Time (days) 52 59.3 22.3 1.00 (3 Economies) Cost (% of property value) 13.8 7.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 8.5 8.6 22.7 29.00 (Singapore) Figure – Registering Property in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 77.89: Mauritius (Rank: 35) 65.45: Botswana (Rank: 81) 62.45: Malawi (Rank: 96) 58.43: South Africa (Rank: 107) 51.71: Regional Average (Sub-Saharan Africa) 38.35: Namibia (Rank: 175) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Namibia – Procedure, Time and Cost Time Cost 14 50 12 40 Cost (% of property value) 10 Time (days) 30 8 6 20 4 10 2 0 0 1 *2 *3 4 5 6 7 8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Namibia Figure – Registering Property in Namibia – Procedure, Time and Cost Time Cost 14 50 12 40 Cost (% of property value) 10 Time (days) 30 8 6 20 4 10 2 0 0 1 *2 *3 4 5 6 7 8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Namibia and comparator economies – Measure of Quality 18 17.0 16 13.5 14 12 Index score 10.0 10.5 10 8.5 8.6 8 6 4 2 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Registering Property in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain building compliance certi cate 3 weeks N$500 Agency : Municipality, Ministy of Land (simultaneous with procedure 2 & 3) Pursuant to the the Building Regulations amendments by the City of Windhoek (published on 19 August 2011 in Government Gazette 4779), a building compliance certi cate must be obtained by the building owner prior to a property transfer. Upon application for the certi cate, the Municipality will dispatch an expert to conduct an inspection of the building. The inspector will ensure that the concerned property and the building and/or land upon which it is constructed complies with the provisions of the Local Authorities Act, the establishment, subdivision or consolidations conditions imposed in terms of the town planning scheme and also the City’s Building Page 27   Regulations. A rates and taxes clearance certi cate will not be issued prior to Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Doing Business 2018 Namibia Details – Registering Property in Namibia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain building compliance certi cate 3 weeks N$500 Agency : Municipality, Ministy of Land (simultaneous with procedure 2 & 3) Pursuant to the the Building Regulations amendments by the City of Windhoek (published on 19 August 2011 in Government Gazette 4779), a building compliance certi cate must be obtained by the building owner prior to a property transfer. Upon application for the certi cate, the Municipality will dispatch an expert to conduct an inspection of the building. The inspector will ensure that the concerned property and the building and/or land upon which it is constructed complies with the provisions of the Local Authorities Act, the establishment, subdivision or consolidations conditions imposed in terms of the town planning scheme and also the City’s Building Regulations. A rates and taxes clearance certi cate will not be issued prior to the issuance of a building clearance certi cate. The building inspector can either issue a building certi cate upon compliance or in the event of the inspector establishing that there is non-compliance, the inspector must instruct the owner to rectify the non-compliance, where after, upon proof of compliance, a building clearance certi cate can be issued. 2 Conveyancer collects required documentation and drafts the deed of 7 days According to the fee transfer (simultaneous with schedule published Agency : Conveyancer Procedure 1 and 3) on page number 17 in Government The conveyancer collects all the necessary documentation: For Companies: Gazette No. 3155 (i) Copies of Memorandum and Articles of Association, (ii) Certi cate of published on 17 Incorporation and any amendments to it, (iii) Certi cate to commence February, 2004, the business, CM 29, and (iv) copy of authorized person’s ID, necessary resolutions for the ability to transfer or take transfer. A deed of sale signed fee is determined as by both parties is a statutory prerequisite for the sale of landed property. follows: These documents include a power of attorney to transfer, transfer duty application form, transfer duty declarations for both transferor and For property value transferee, as well as statement of transfer cost with provisions for (i) stamp over N$500 000 (the duties and (ii) transfer duties. Conveyance’s fees are calculated according to Doing Business an o cial xed scale depending on the purchase value of the property. Fees case), the formula is: are ad valorem on a diminishing curve (from 25% to 0.01%). N$6,000 for the first N$500,000 plus N$800 per N$100,000 or part thereof above that up to and including N$1,000,000 whereafter the fee is N$400 per N$100,000 or part thereof up to and including N$5,000,000, whereafter the fee shall be N$200 per N$100 000 or part thereof. Page 28   3 Conveyancer conduct a Deed Search at the Deeds O ce in Windhoek 3 days N$100 instruct the owner to rectify the non-compliance, where after, upon proof of Doing compliance, a building Business 2018 clearance certi cate can be issued. Namibia 2 Conveyancer collects required documentation and drafts the deed of 7 days According to the fee transfer (simultaneous with schedule published Agency : Conveyancer Procedure 1 and 3) on page number 17 in Government The conveyancer collects all the necessary documentation: For Companies: Gazette No. 3155 (i) Copies of Memorandum and Articles of Association, (ii) Certi cate of published on 17 Incorporation and any amendments to it, (iii) Certi cate to commence February, 2004, the business, CM 29, and (iv) copy of authorized person’s ID, necessary resolutions for the ability to transfer or take transfer. A deed of sale signed fee is determined as by both parties is a statutory prerequisite for the sale of landed property. follows: These documents include a power of attorney to transfer, transfer duty application form, transfer duty declarations for both transferor and For property value transferee, as well as statement of transfer cost with provisions for (i) stamp over N$500 000 (the duties and (ii) transfer duties. Conveyance’s fees are calculated according to Doing Business an o cial xed scale depending on the purchase value of the property. Fees case), the formula is: are ad valorem on a diminishing curve (from 25% to 0.01%). N$6,000 for the first N$500,000 plus N$800 per N$100,000 or part thereof above that up to and including N$1,000,000 whereafter the fee is N$400 per N$100,000 or part thereof up to and including N$5,000,000, whereafter the fee shall be N$200 per N$100 000 or part thereof. 3 Conveyancer conduct a Deed Search at the Deeds O ce in Windhoek 3 days N$100 Agency : Deeds Registry (simultaneous with Procedures 1 & 2) A conveyancer conducts a search in the Deeds O ce in Windhoek to obtain the correct description of the owner of the land and the property description. 4 Provide up-to-date rate payment receipt as of the transaction date 1 day no cost Agency : Municipality The conveyancer must inform the Municipality 7 days in advance that there will be a transfer of a property. As a normal rule, payment for utilities is made in advance for these 3 months. Calculation is made based on the previous payment of the utilities and this amount is multiplied by 3. The conveyancer will pay on behalf of the seller. This certi cate is required to proceed with transfer and states that rates and taxes to the applicable authority were paid in full. Proof of payment in the form of a clearance certi cate must be obtained from the applicable authority where the property is located. 5 Parties sign the transfer deed at conveyancer’s o ce 1 day Included in Agency : Conveyancer Procedure 2 Parties sign the transfer deed at the conveyancer's o ce Page 29   certi cate must be obtained from the applicable authority where the Doing property Business is located. 2018 Namibia 5 Parties sign the transfer deed at conveyancer’s o ce 1 day Included in Agency : Conveyancer Procedure 2 Parties sign the transfer deed at the conveyancer's o ce 6 The conveyancer applies to the Receiver of Revenue for a transfer duty 7 days Based on the receipt Transfer Duty Agency : Receiver of Revenue Amendment Act no. 6 of 2013 and Stamp Parties sign the documentation at conveyancer’s o ce. The purchasing Duty Amendment company pays the transfer costs and the seller furnishes the conveyancer Act no. 7 of 2013 with the original title deed of the property. Once the draft deed is prepared, (Government it is signed by the selling and purchasing parties (either owner or authorized Gazette of the representatives). The amount for transfer duties and stamp duties is paid to the conveyancer. If the property to be transferred includes commercial Republic of Namibia buildings, VAT (15%) is charged on the purchase price. No 5208 and No 5209 respectively) following duties apply: Transfer Duty: "12 per cent of the said value or the said amount, as the case may be, if the person by whom the property is acquired or in whose favour or for whose benefit the said interest or restriction is renounced is a person other than a natural person.” Stamp Duty: "For a person (including a trust) other than a natural person - On the value or consideration for every N$1 000 or part thereof: N$12" 7 The conveyancer lodges the transfer deed at the Deeds O ce "The Deed N$ 300 Agency : Deeds Registry Registration Act provides that Transfer duty is a government tax which is payable on the value of the lodging of deed immovable property acquired. As of June 2010, the transfer duty when should be companies are involved was increased to 12%. Who is responsible to pay for performed within 7 the Transfer duty and the stamp duty must be clearly stated in the deed of days. But there is a sale. If not clearly said, then the seller must pay for the transfer duty. Stamp Duty is payable to the Receiver of Revenue on a deed of transfer. The bulk of deeds to be Conveyancer will deliver all documents to the Receiver of Revenue for lodged, it can take processing. This o ce will check that the calculation of the Transfer duty and 8-9 days. stamp duty are accurate and will issue a receipt for the Transfer duty and What happens in another one for the Stamp duty. The conveyancer will collect both receipts those 7 days? to proceed to registration. 1st business day: Page 30   1st examiner every N$1 000 or Doing Business 2018 Namibia part thereof: N$12" 7 The conveyancer lodges the transfer deed at the Deeds O ce "The Deed N$ 300 Agency : Deeds Registry Registration Act provides that Transfer duty is a government tax which is payable on the value of the lodging of deed immovable property acquired. As of June 2010, the transfer duty when should be companies are involved was increased to 12%. Who is responsible to pay for performed within 7 the Transfer duty and the stamp duty must be clearly stated in the deed of days. But there is a sale. If not clearly said, then the seller must pay for the transfer duty. Stamp Duty is payable to the Receiver of Revenue on a deed of transfer. The bulk of deeds to be Conveyancer will deliver all documents to the Receiver of Revenue for lodged, it can take processing. This o ce will check that the calculation of the Transfer duty and 8-9 days. stamp duty are accurate and will issue a receipt for the Transfer duty and What happens in another one for the Stamp duty. The conveyancer will collect both receipts those 7 days? to proceed to registration. 1st business day: 1st examiner checks the deed 2nd business day: 2nd examiner checks the deed 3rd business day: 3rd examiner check the deed 4th business day: chief examiner checks the deed 5th business day: clerk puts examination notes in conveyancer’s mailbox at the Deeds Registry. The notes may say, “here is some typo to be corrected” or “insolvency information yet to be provided and lodged” etc. 8 The deed of transfer is signed in the presence of the Registrar of Deeds 15 days 0 and ownership of the property is transferred Agency : Deeds Registry The conveyancer lodges the transfer deed with the Deed o ce. There, the documents will be examined, endorsed and the Registrar’s seal applied to the documents. Information will be entered in the land registry. Usually it takes about 7 working days for all the checking to be completed. Once all checks are done, the conveyancer will be informed and will sign the deed of transfer in the presence of the Registrar of Deeds. Takes place simultaneously with previous procedure. Details – Registering Property in Namibia – Measure of Quality Answer Score Page 31   Quality of the land administration index (0-30) 8.5 Takes place simultaneously with previous procedure. Doing Business 2018 Namibia Details – Registering Property in Namibia – Measure of Quality Answer Score Quality of the land administration index (0-30) 8.5 Reliability of infrastructure index (0-8) 1.0 What is the institution in charge of immovable property registration? Deeds Registry - Ministry of Lands and Resettlement In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Survey and Mapping Department, Ministry of Lands and Resettlement In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 3.0 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0 made publicly available–and if so, how? Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5 immovable property registration in the largest business city made publicly available– boards and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Page 32   Link for Doing online access: Business 2018 Namibia Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2015: 8196.0 Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the o cial fee Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, on public 0.5 —and if so, how? boards Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 4.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private No 0.0 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 Page 33   property transaction (e.g., checking the compliance of contracts with requirements of engaged in good faith in a property transaction based on erroneous information ed by the immovable certi Business Doing property registry? 2018 Namibia Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Lawyer; Interested Parties. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Lawyer. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Magistrate's property worth 50 times gross national income (GNI) per capita and located in the Court/High Court largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Page 34   Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Namibia Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Strength of legal rights index (0-12) 5 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 3.0 6.6 8.00 (34 Economies) Page 35   Credit registry coverage (% of adults) 0.0 6.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Namibia Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Strength of legal rights index (0-12) 5 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 3.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 6.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 61.0 8.2 63.7 100.00 (23 Economies) Figure – Getting Credit in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Malawi (Rank: 6) 65.00: Mauritius (Rank: 55) 60.00: Namibia (Rank: 68) 60.00: South Africa (Rank: 68) 55.00: Botswana (Rank: 77) 40.73: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Namibia and comparator economies 12 11 10 8 Index score 6 6 5 5 5 5.1 4 2 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Legal Rights in Namibia Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 36   Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Doing Business 2018 Namibia Details – Legal Rights in Namibia Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Namibia and comparator economies 8 7 7 7 7 6 6 Index score 4 3.0 2 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Credit Information in Namibia Page 37   0 Namibia Doing Business 2018 Botswana Namibia Malawi Mauritius South Africa Sub-Saharan Africa Details – Credit Information in Namibia Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? No No 0 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 885,000 0 Number of firms 20,000 0 Total 905,000 0 Percentage of adult population 61.0 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 38   transactions; Available legal remedies (damages, Percentage of adult population 61.0 0.0 Doing Business 2018 Namibia Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5 4.0 6.4 Page 39   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Namibia Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5 4.0 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.00: South Africa (Rank: 24) 66.67: Mauritius (Rank: 33) 56.67: Botswana (Rank: 76) 53.33: Namibia (Rank: 89) 51.67: Malawi (Rank: 96) 43.72: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Namibia and comparator economies – Measure of Quality Namibia 8 5 5 3 4 7 Botswana 7 8 7 3 6 3 Malawi 4 7 4 2 7 7 Mauritius 7 8 6 3 7 9 South Africa 4 8 8 6 8 8 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Sub-Saharan Africa 4.2 3.5 5.5 3.3 4.6 5.6 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Namibia – Measure of Quality Answer Score Page 40   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Namibia Details – Protecting Minority Investors in Namibia – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 5 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Shareholders or 1.0 board of directors including interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 5 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 7 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Page 41   Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction Doing 2018 (0-1) documents? Business Namibia Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 5 Extent of shareholder rights index (0-10) 4 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected No 0.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 3 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Page 42   Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 of Buyer? Doing Business 2018 Namibia Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with Page 43   post ling processes. Information is also compiled on frequency of ling Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Namibia Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Payments (number per year) 27 37.2 10.9 3 (Hong Kong SAR, China) Page 44   return, but within the tax assessment period. Doing Business 2018 Namibia Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Payments (number per year) 27 37.2 10.9 3 (Hong Kong SAR, China) Time (hours per year) 302 280.8 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 20.7 46.8 40.1 18.47% (32 Economies) Postfiling index (0-100) 77.17 54.39 83.45 99.38 (Estonia) Figure – Paying Taxes in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.85: Mauritius (Rank: 10) 80.02: South Africa (Rank: 46) 80.01: Botswana (Rank: 47) 74.52: Namibia (Rank: 79) 62.10: Malawi (Rank: 134) 57.49: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Namibia and comparator economies – Measure of Quality 100 87.65 90 82.70 77.17 80 70 Index score 60 55.45 54.39 50 40 33.41 30 20 10 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Paying Taxes in Namibia Total tax and Tax or mandatory Payments Notes on Time Statutory tax contribution rate (% Notes contribution (number) Payments (hours) rate Tax base of profit) on TTR Page 45   Corporate income tax 3 40 32% taxable 16.66 Doing Business 2018 Namibia Figure – Paying Taxes in Namibia and comparator economies – Measure of Quality 100 87.65 90 82.70 77.17 80 70 Index score 60 55.45 54.39 50 40 33.41 30 20 10 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Paying Taxes in Namibia Total tax and Tax or mandatory Payments Notes on Time Statutory tax contribution rate (% Notes contribution (number) Payments (hours) rate Tax base of profit) on TTR Corporate income tax 3 40 32% taxable 16.66 profits Property tax 1 online various rates property 1.58 value Social security 12 52 0.9% gross 1.02 contributions salaries VET levy 1 online 1% gross 0.85 salaries Vehicle tax 1 fixed fee type of 0.64 vehicle tax on insurance 1 1% insurance 0.01 premium Fuel tax 1 fuel 0.00 small consumption amount Social security 0 jointly N$394 per employee 0.00 withheld contributions on year per employee person Stamp duty 1 N$5 per contract 0.00 Value added tax (VAT) 6 210 15% value added 0.00 not included Totals 27 302 20.7 Details – Paying Taxes in Namibia – Tax by Type Taxes by type Answer Page 46   Profit tax (% of profit) 16.7 Totals 27 302 20.7 Doing Business 2018 Namibia Details – Paying Taxes in Namibia – Tax by Type Taxes by type Answer Profit tax (% of profit) 16.7 Labor tax and contributions (% of profit) 1.9 Other taxes (% of profit) 2.2 Details – Paying Taxes in Namibia – Measure of Quality Answer Score Post ling index (0-100) 77.17 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 30.0 40 Time to obtain a VAT refund (weeks) 17.0 73.27 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 4.0 95.41 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border recent compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The mostPage 47   round of data collection for the project was completed in June 2017. See the methodology for more information. a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Namibia Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 48   of agriculture or industry, national security agencies and any other Doing Business 2018 Namibia government authorities. Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Time to export: Border compliance (hours) 120 100.1 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 745 592.1 149.9 0.00 (19 Economies) Time to export: Documentary compliance 90 87.8 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 348 215.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 6 136.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 145 686.8 111.6 0.00 (27 Economies) Time to import: Documentary compliance 3 103.0 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 63 300.1 25.6 0.00 (30 Economies) Figure – Trading across Borders in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 86.65: Botswana (Rank: 50) 79.90: Mauritius (Rank: 70) 65.29: Malawi (Rank: 117) 61.47: Namibia (Rank: 132) 58.01: South Africa (Rank: 147) 52.56: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Namibia – Time and Cost Time Cost 140 745 800 120 120 700 600 100 90 Time (hours) Cost (USD) 500 80 348 400 60 300 40 145 200 20 63 100 6 3 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 49   Doing Business 2018 Namibia Figure – Trading across Borders in Namibia – Time and Cost Time Cost 140 745 800 120 120 700 600 100 90 Time (hours) Cost (USD) 500 80 348 400 60 300 40 145 200 20 63 100 6 3 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Namibia Characteristics Export Import Product HS 03 : Fish & crustacean, mollusc & other aquatic HS 8708: Parts and accessories of motor invertebrate vehicles Trade partner Spain South Africa Border Walvis Bay port Mamuno border crossing Distance (km) 394 315 Domestic transport time 6 6 (hours) Domestic transport cost 1000 765 (USD) Details – Trading across Borders in Namibia – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 48.0 200.0 Export: Clearance and inspections required by agencies other than customs 48.0 102.5 Export: Port or border handling 78.0 442.5 Import: Clearance and inspections required by customs authorities 2.8 145.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 5.0 0.0 Details – Trading across Borders in Namibia – Trade Documents Export Import Page 50   (USD) Doing Business 2018 Namibia Details – Trading across Borders in Namibia – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 48.0 200.0 Export: Clearance and inspections required by agencies other than customs 48.0 102.5 Export: Port or border handling 78.0 442.5 Import: Clearance and inspections required by customs authorities 2.8 145.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 5.0 0.0 Details – Trading across Borders in Namibia – Trade Documents Export Import Bill of lading Inland bill of lading Customs release order Commercial invoice Commercial invoice Customs Import Declaration (SAD 500) Customs Export Declaration Packing list Packing List Customs transit document Terminal handling receipt VAT Deferral form Booking confirmation (by shipping line) EUR 1 - Certificate of origin Health certificate Form F178 (Foreign Exchange Control Form) SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case Page 51   the case from simple debt enforcement. Time for trial and to obtain the judgment SOLAS certificate Doing Business 2018 Namibia Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value NAD 119,424.00 Court name Windhoek High Court City Covered Windhoek Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Time (days) 460 656.8 577.8 164.00 (Singapore) Cost (% of claim value) 35.8 44.0 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 9.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.58: Mauritius (Rank: 27) 61.58: Namibia (Rank: 59) 54.10: South Africa (Rank: 115) Page 52   of judicial processes Quality Business Doing index (0-18) 2018 Namibia 9.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.58: Mauritius (Rank: 27) 61.58: Namibia (Rank: 59) 54.10: South Africa (Rank: 115) 49.99: Botswana (Rank: 133) 48.14: Regional Average (Sub-Saharan Africa) 45.55: Malawi (Rank: 151) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Namibia – Time and Cost Time Cost 700 660 656.8 80 69.1 600 600 577.8 70 522 519 Cost (% of claim value) 60 500 460 Time (days) 44.0 50 400 39.8 35.8 40 33.2 300 25.0 30 21.5 200 20 100 10 0 0 Botswana Malawi Mauritius Namibia OECD high income South Africa Sub-Saharan Africa Figure – Enforcing Contracts in Namibia and comparator economies – Measure of Quality Namibia 2 4 2 1.5 Botswana 2 2.5 0 2.5 Malawi 1.5 1 1.5 4.5 Mauritius 2.5 2 3 5 South Africa 2.5 2 0.5 2 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 Page 53   14 0 0 Botswana Malawi Mauritius Namibia OECD high income South Africa Sub-Saharan Africa Doing Business 2018 Namibia Figure – Enforcing Contracts in Namibia and comparator economies – Measure of Quality Namibia 2 4 2 1.5 Botswana 2 2.5 0 2.5 Malawi 1.5 1 1.5 4.5 Mauritius 2.5 2 3 5 South Africa 2.5 2 0.5 2 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Namibia Indicator Time (days) 460 Filing and service 10 Trial and judgment 400 Enforcement of judgment 50 Cost (% of claim value) 35.8 Attorney fees 29 Court fees 6 Enforcement fees 0.8 Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 1.5 Case management (0-6) 4.0 Court automation (0-4) 2.0 Alternative dispute resolution (0-3) 2.0 Details – Enforcing Contracts in Namibia – Measure of Quality Page 54   Alternative dispute resolution (0-3) 2.0 Doing Business 2018 Namibia Details – Enforcing Contracts in Namibia – Measure of Quality Answer Score Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 1.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 4.0 1. Time standards 1.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 2.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 55   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Namibia 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.0 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 0.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or No consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 56   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Namibia Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Recovery rate (cents on the dollar) 34.0 20.3 71.2 93.1 (Norway) Time (years) 2.5 2.9 1.7 0.4 (Ireland) Page 57   Cost (% of estate) 14.5 22.7 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Namibia Sub-Saharan OECD high Indicator Namibia Africa income Overall Best Performer Recovery rate (cents on the dollar) 34.0 20.3 71.2 93.1 (Norway) Time (years) 2.5 2.9 1.7 0.4 (Ireland) Cost (% of estate) 14.5 22.7 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 6.0 6.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Namibia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.06: Mauritius (Rank: 36) 57.59: South Africa (Rank: 55) 47.76: Botswana (Rank: 79) 37.04: Namibia (Rank: 123) 33.28: Malawi (Rank: 138) 30.28: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Namibia – Time and Cost Time Cost 3.5 30 25.0 2.9 3 25 2.6 22.7 2.5 2.5 Cost (% of estate) 18.0 18.0 20 Time (years) 2.0 2 1.7 1.7 14.5 14.5 1.7 15 1.5 9.1 10 1 0.5 5 0 0 Botswana Malawi Mauritius Namibia OECD high income South Africa Sub-Saharan Africa Figure – Resolving Insolvency in Namibia and comparator economies – Measure of Quality Namibia 2 3 1 0 Page 58   Botswana 1 3 0 0 0 Botswana Malawi Mauritius Namibia OECD high income South Africa Sub-Saharan Africa Doing Business 2018 Namibia Figure – Resolving Insolvency in Namibia and comparator economies – Measure of Quality Namibia 2 3 1 0 Botswana 1 3 0 Malawi 4 3 1 0.5 Mauritius 4 3 3 0.5 South Africa 6 3 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Sub-Saharan Africa 4.1 2.3 1 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Namibia and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 70 65.5 67.4 60 50 40 34.0 34.4 30 20.3 20 12.5 10 0 Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Details – Resolving Insolvency in Namibia Indicator Answer Explanation Proceeding liquidation The Bank will initiate foreclosure proceedings to enforce its security interest. Other creditors (after an and/or the hotel management will initiate insolvency proceedings, which would stay the attempt at foreclosure action. As reorganization (judicial management) rarely works, the most likely foreclosure) insolvency procedure would be liquidation. Outcome piecemeal sale Insolvent companies rarely continue operating as a going concern in Namibia. Time (in years) 2.5 It takes between 2 and 3 years to complete liquidation proceedings in Namibia. Main delays will be caused by the parties to the proceedings, who are likely to use delay tactics as much as possible. Additionally, court proceedings in Namibia usually take a long time to get resolved. Cost (% of 14.5 Major expenses will include: Court fees - 0.5%, attorney fees - 2%, fees of the insolvency Page 59   estate) representative - 4%, auctioneer fees - 6%, fees of accountants and other professionals - 1%, Namibia Botswana Malawi Mauritius South Africa Sub-Saharan Africa Doing Business 2018 Namibia Details – Resolving Insolvency in Namibia Indicator Answer Explanation Proceeding liquidation The Bank will initiate foreclosure proceedings to enforce its security interest. Other creditors (after an and/or the hotel management will initiate insolvency proceedings, which would stay the attempt at foreclosure action. As reorganization (judicial management) rarely works, the most likely foreclosure) insolvency procedure would be liquidation. Outcome piecemeal sale Insolvent companies rarely continue operating as a going concern in Namibia. Time (in years) 2.5 It takes between 2 and 3 years to complete liquidation proceedings in Namibia. Main delays will be caused by the parties to the proceedings, who are likely to use delay tactics as much as possible. Additionally, court proceedings in Namibia usually take a long time to get resolved. Cost (% of 14.5 Major expenses will include: Court fees - 0.5%, attorney fees - 2%, fees of the insolvency estate) representative - 4%, auctioneer fees - 6%, fees of accountants and other professionals - 1%, and administrative fees - 0.5%. Recovery rate (cents on the 34.0 dollar) Details – Resolving Insolvency in Namibia – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 6.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome No 0.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Page 60   dollar) Doing Business 2018 Namibia Details – Resolving Insolvency in Namibia – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 6.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome No 0.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.0 Which creditors vote on the proposed reorganization plan? (c) Other 0.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 Page 61   Creditor Doing participation Business 2018 index (0-4) Namibia 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for Page 62   work of equal value and nondiscrimination based on the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Namibia Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Namibia Answer Hiring Page 63   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Namibia Details – Labor Market Regulation in Namibia Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0 Ratio of minimum wage to value added per worker 0.0 Maximum length of probationary period (months) n.a. Working hours Standard workday 9.0 Maximum number of working days per week 5.5 Premium for night work (% of hourly pay) 6.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 20.0 Paid annual leave for a worker with 5 years of tenure (working days) 20.0 Paid annual leave for a worker with 10 years of tenure (working days) 20.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 20.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 64   Third-party Doing approval Business 2018 if nine workers are dismissed? Namibia No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 1.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 5.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 10.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 5.3 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 84.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? n.a. Business Reforms in Namibia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Namibia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Enforcing Contracts: Namibia made enforcing contracts easier by introducing an electronic ling system and an electronic case management system for the use of judges and lawyers. DB2016 Dealing with Construction Permits: In Namibia the process of dealing with construction permits became more time-consuming as a result of ine ciency at the municipality. Page 65   Getting Credit: Namibia improved access to credit information by guaranteeing by law borrowers’ right to inspect their own Minimum contribution period for unemployment protection (months)? n.a. Doing Business 2018 Namibia Business Reforms in Namibia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Namibia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Enforcing Contracts: Namibia made enforcing contracts easier by introducing an electronic ling system and an electronic case management system for the use of judges and lawyers. DB2016 Dealing with Construction Permits: In Namibia the process of dealing with construction permits became more time-consuming as a result of ine ciency at the municipality. Getting Credit: Namibia improved access to credit information by guaranteeing by law borrowers’ right to inspect their own data. DB2015 Paying Taxes: Namibia made paying taxes more complicated for companies by introducing a new vocational education and training levy. DB2014 Registering Property: Namibia made transferring property more expensive by increasing the transfer and stamp duties. DB2013 Getting Electricity: Namibia made getting electricity easier by reducing the time required to provide estimates and external connection works and by lowering the connection costs. Registering Property: Namibia made transferring property more di cult by requiring conveyancers to obtain a building compliance certi cate beforehand. DB2012 Registering Property: Namibia made transferring property more expensive for companies. Resolving Insolvency: Namibia adopted a new company law that established clear procedures for liquidation. DB2010 Labor Market Regulation: Namibia increased mandatory paid annual leave. DB2009 Starting a Business: Namibia reduced the time required to start a business by computerizing the company registry. Page 66   DB2009 Starting Doing a Business: Business 2018 Namibia reduced the time required to start a business by computerizing the company registry. Namibia Page 67