How to Get BoN Approval for Outward Foreign Investment
Learn how to get BoN approval for outward foreign investment from Namibia, including exchange control requirements, foreign exchange applications, Tax Clearance Certificates, Authorised Dealers, investment allowances and cross-border transfers.
Namibian residents who want to invest money outside Namibia must comply with the country’s exchange control requirements when purchasing foreign currency and transferring funds abroad. The process generally involves an Authorised Dealer in Foreign Exchange, such as a commercial bank, rather than submitting an ordinary application directly to the Bank of Namibia (BoN).
Namibia’s exchange control framework regulates foreign currency transactions while allowing legitimate foreign investment and other cross-border transactions. The Bank of Namibia states that applications for foreign exchange are made through Authorised Dealers.
The exact procedure depends on whether the transaction is being made by an individual, company or another entity, the purpose of the transfer, the amount involved and the documentation available. Businesses considering their wider regulatory setup can also review these Bank of Namibia registration guides before proceeding.
What Is Outward Foreign Investment?
Outward foreign investment occurs when a Namibian resident uses funds from Namibia to acquire an investment or financial interest outside the country.
Examples may include:
- Buying shares in a foreign company
- Investing in an offshore business
- Acquiring an ownership interest in a company abroad
- Funding an overseas investment project
- Purchasing qualifying foreign investment assets
- Establishing or acquiring a business outside Namibia
An outward investment is different from an ordinary foreign payment. A payment for goods, services, education or travel may have its own exchange control treatment, while an investment involves deploying capital with the expectation of acquiring an investment or generating returns.
The Bank of Namibia’s exchange control framework recognises that residents may have legitimate reasons to transfer or invest money abroad, subject to the applicable rules and procedures.
Do You Need BoN Approval for Outward Foreign Investment?
Not every outward investment requires a separate discretionary approval from the Bank of Namibia.
For qualifying individual investments within the applicable foreign capital or investment allowance, the transaction is generally processed through an Authorised Dealer in Foreign Exchange. The Bank of Namibia’s current exchange control FAQ states that private individuals may invest offshore up to N$4 million per person per annum, provided applicable criteria are met, including obtaining a Tax Clearance Certificate from Inland Revenue.
This is important because older Bank of Namibia material refers to a N$6 million foreign capital allowance. For example, a 2019 Bank of Namibia media release stated that residents aged 18 and older were entitled to an investment allowance of N$6 million per year.
Because exchange control policies can change, applicants should confirm the applicable allowance with their commercial bank or Authorised Dealer before initiating a large transaction. A bank that is considering a broader regulated activity can also review the requirements for a commercial banking licence in Namibia. The current Bank of Namibia FAQ should not be replaced by an older allowance quoted in historical material.
Step 1: Determine the Purpose of the Foreign Transfer
Before applying, establish exactly why the money is being transferred outside Namibia.
The bank will need to classify the transaction correctly. Common categories can include:
- Foreign investment
- Capital investment
- Purchase of shares
- Loan payments
- Dividends
- Interest
- Import payments
- Professional or business services
- Education
- Property-related transactions
- Other legitimate foreign transfers
Correct classification matters because different foreign exchange regulations and documentary requirements can apply to different transaction categories.
The Bank of Namibia maintains an exchange control framework covering authorised dealers foreign exchange, cross-border transactions and reporting requirements.
If the proposed transaction involves acquiring an interest in a Namibian bank rather than investing abroad, the applicable process is different; see this BoN approval guide for buying shares in a Namibian bank.
Step 2: Approach an Authorised Dealer
Applications for foreign exchange should normally be submitted through an Authorised Dealer in Foreign Exchange.
In practice, this means starting with a commercial bank that provides foreign exchange services. The Bank of Namibia explains that foreign exchange transactions are handled through licensed Authorised Dealers, including commercial banks, while certain limited-authority dealers also operate under the applicable framework.
You should explain to the bank that the intended transaction is an outward foreign investment and provide the requested supporting documents.
The Bank of Namibia provides an online section dealing with Applications for Foreign Transfers – Excon Web, which contains information relating to the foreign transfer application framework and Authorised Dealers.
The regulatory framework can differ for institutions operating representative offices, payment businesses or other financial services. For example, a foreign financial institution considering Namibia can review the requirements for a foreign bank representative office.
Step 3: Obtain the Required Tax Clearance
A Tax Clearance Certificate may be an important part of the application, particularly where a resident is using an applicable investment allowance.
The Bank of Namibia’s exchange control FAQ specifically identifies obtaining a Tax Clearance Certificate from Inland Revenue as one of the criteria for private individuals investing offshore.
For information on the wider tax-registration framework, see NamRA registration in Namibia. Individuals who need to establish their taxpayer status can also consult this step-by-step individual taxpayer registration guide.
The certificate helps demonstrate that the applicant’s tax affairs satisfy the requirements applicable to the foreign exchange transaction.
Before approaching the bank, check whether the certificate must be current and whether any specific wording, endorsement or foreign-investment purpose is required. Applicants who need evidence of tax compliance can also review the process for obtaining a NamRA Certificate of Good Standing.
Step 4: Prepare Proof of Funds and Investment Documents
An Authorised Dealer may request documentation establishing the source and purpose of the funds.
Depending on the transaction, supporting documents may include:
- Valid identification
- Tax Clearance Certificate
- Bank statements
- Proof of source of funds
- Investment agreement
- Share purchase agreement
- Company registration documents
- Foreign company’s incorporation documents
- Board resolution for corporate investors
- Invoice or payment request
- Details of the foreign beneficiary
- Foreign bank account information
- Investment proposal or supporting correspondence
The exact requirements are determined by the bank and the nature of the transaction.
Providing complete documentation can reduce delays because the bank must establish the legitimate purpose and correct classification of the proposed foreign transfer.
Where a company is the investor, its underlying tax registration may also need to be in order. See the guide to registering a business for income tax in Namibia. Trusts with relevant tax obligations can review the process for registering a trust for tax purposes with NamRA.
Step 5: Check the Applicable Investment Allowance
For individual investors, one of the most important exchange control requirements is determining whether the proposed transaction falls within an available allowance.
The current Bank of Namibia FAQ states that private individuals who satisfy the applicable criteria may invest offshore up to N$4 million per person per annum.
The allowance should not automatically be confused with other foreign exchange allowances. For example, the Bank of Namibia has historically distinguished investment allowances from discretionary allowances for other foreign exchange transactions.
Therefore, before transferring funds, ask the Authorised Dealer to confirm:
- Which allowance applies;
- The current annual limit;
- Whether the transaction qualifies as an investment;
- Whether unused allowance can be carried forward;
- Which documents are required; and
- Whether additional BoN approval is necessary.
If the intended transfer relates to emigration or capital outflow rather than a conventional investment, the applicable procedure may differ; applicants can review this BoN Form E capital outflow and emigration guide.
Step 6: Submit the Foreign Exchange Application
Once the documentation has been prepared, the Authorised Dealer can process the foreign exchange application.
The bank assesses the transaction against the applicable exchange control rules and determines whether it can process the transaction under its delegated authority or whether it must be referred to the Bank of Namibia.
The Bank of Namibia’s exchange control resources provide information on the legal framework, Authorised Dealers, Authorised Dealers with Limited Authority and cross-border foreign exchange transactions.
The Bank of Namibia Exchange Control section provides the relevant regulatory information and resources for foreign exchange transactions.
The procedure should not be confused with applications for specialised financial-sector licences. For example, a fintech business may need to consider the BoN Fintech Sandbox application process, while a payment business may need a payment service provider licence.
Step 7: Bank of Namibia Review Where Required
Some transactions may require additional consideration by the Bank of Namibia.
This can happen where the transaction does not fall neatly within an ordinary allowance or where the applicable exchange control framework requires further approval, documentation or reporting.
An application requiring BoN consideration should contain a clear explanation of:
- The amount being transferred
- The currency
- The destination country
- The purpose of the investment
- The identity of the investor
- The identity of the foreign recipient
- The source of the funds
- The nature of the investment
- Supporting contractual or corporate documents
The bank will normally guide the applicant on whether additional information is required.
Where the proposed transaction involves a new regulated payment product rather than an ordinary investment, separate regulatory approval may apply. See the BoN approval guide for a new payment instrument.
Outward Investment and Foreign Exchange Reporting
Approval or processing of an outward transaction does not necessarily eliminate reporting obligations.
Namibia’s exchange control system includes reporting requirements for different categories of foreign exchange transactions. Historical BoN documentation, for example, provides detailed procedures for reporting inward transactions and refers to transaction classifications and reference numbers for certain payments. See the Bank of Namibia Inward Reporting Procedures.
This reporting framework is important because the bank must be able to identify and report relevant cross-border transactions accurately.
Businesses involved in regulated payments should separately consider whether they need access to the national clearing infrastructure. The relevant process is explained in this guide to joining the BoN Clearing and Settlement System.
What About Companies Making Outward Investments?
A company investing outside Namibia should not automatically assume that the rules applicable to an individual investor apply in exactly the same way.
A corporate transaction may require additional documentation, including:
- Certificate of incorporation
- Company registration documents
- Board resolution
- Shareholder information
- Financial statements
- Proof of source of funds
- Investment agreement
- Foreign company’s registration documents
- Details of the proposed foreign investment
- Tax documentation
- Banking information
The company’s Authorised Dealer can determine the appropriate transaction category and whether the proposed transfer can be processed under existing authority.
Companies should also distinguish between an investment abroad and ordinary payments to foreign suppliers, lenders, consultants or service providers.
For businesses that have not yet been incorporated, see the guide to registering a business in Namibia. A private company can also be established through private limited company registration in Namibia, while a close corporation can follow the close corporation registration process.
Foreign Loans and Outward Interest Payments
Foreign loans can involve additional exchange control and reporting considerations.
Where a Namibian entity has a foreign loan, the bank may need to establish the original loan transaction and maintain the relevant reference information for subsequent payments.
The Bank of Namibia’s reporting procedures specifically address outward interest payments on foreign loans and indicate that the applicable loan reference number allocated to the original loan is relevant when processing certain payments.
This is why businesses should retain their original loan documentation and bank correspondence instead of treating every later interest or principal payment as a completely new transaction.
Businesses obtaining foreign funding can also review the requirements for BoN approval for foreign business loans.
Can Foreign Investors Externalise Funds From Namibia?
The exchange control framework also addresses the ability of foreign investors to bring in funds and later externalise funds associated with their investment.
Bank of Namibia material states that Namibia’s exchange control legislative regime allows foreign investors to bring in and externalise their own funds through commercial banks, subject to the applicable framework.
The broader legal framework also recognises transfers associated with foreign investment, including capital, profits, dividends, royalties, loan repayments and interest, subject to applicable exchange control laws.
The Bank of Namibia exchange control policy document provides additional historical and policy context concerning foreign investors, commercial banks and the movement of investment funds.
If an overseas financial institution intends to establish a branch or similar presence in Namibia, that is a separate regulatory matter. See the guide to registering a foreign branch of a Namibian bank for the relevant distinction.
Namibia Investment Promotion Act and Investment Approval
The Namibia Investment Promotion Act, 2016 is relevant to Namibia’s investment framework, but it is important to distinguish inward foreign investment into Namibia from outward investment by Namibian residents.
The Act defines foreign investors and establishes a framework for investments made into Namibia. Its provisions also address the transfer of funds relating to an investment, subject to Namibia’s laws and exchange control regulations.
The Act itself states that transfers relating to an investment remain subject to exchange control regulations under the Currency and Exchanges Act.
A copy of the Namibia Investment Promotion Act, 2016 can be consulted for the statutory provisions.
Importantly, NamibLII currently identifies the 2016 Act as not commenced. Therefore, it should not simply be treated as the operative source of every current investment-approval requirement.
Foreign investors establishing businesses in Namibia can review the requirements for registering a company in Namibia as a foreigner, while those assessing whether incorporation is possible can read Can a foreigner register a company in Namibia?.
Investment Approval Is Different From Exchange Control Approval
These concepts are sometimes used interchangeably, but they address different issues.
Investment approval concerns whether a particular investment is authorised under an applicable investment regime.
Exchange control approval or processing concerns the movement or acquisition of foreign currency and the transfer of funds across Namibia’s borders.
For an outward investment, the immediate banking issue is generally the foreign exchange transaction and compliance with applicable exchange control policies.
For an investment into Namibia by a foreign investor, a different set of investment laws and regulatory requirements may apply.
This distinction is especially important for businesses operating in financial technology, foreign exchange or digital assets. Separate rules may apply to a virtual asset provider licence, crypto token issuance, authorised forex dealer licence or bureau de change licence.
What Can Delay an Outward Investment?
Several issues can cause a foreign investment transfer to take longer than expected.
Incomplete Documentation
Missing identification, tax documents, investment agreements or proof of funds can result in additional queries from the bank.
Unclear Source of Funds
The bank may need sufficient evidence showing where the money originated, particularly for significant transactions.
Incorrect Transaction Classification
A payment classified as an ordinary transfer may require different documentation from an investment transaction.
Amount Exceeding an Applicable Allowance
If the proposed investment exceeds the relevant allowance or does not qualify for the applicable dispensation, additional procedures may be required.
Foreign Beneficiary Problems
Incorrect account numbers, SWIFT information, beneficiary names or destination-bank details can prevent a transfer from being completed.
Outdated Exchange Control Information
Online articles and older documents may contain historical limits that no longer reflect the current position. The discrepancy between older N$6 million material and the current BoN FAQ’s N$4 million offshore investment limit demonstrates why applicants should verify the applicable rules before transferring funds.
Documents to Prepare for an Outward Investment
A practical document checklist may include:
| Document | Purpose |
|---|---|
| Identification document or passport | Establishes the identity of the investor |
| Tax Clearance Certificate | Demonstrates applicable tax compliance |
| Proof of source of funds | Establishes where the investment capital originated |
| Investment agreement | Explains the proposed investment |
| Foreign company documents | Identifies the overseas investment vehicle |
| Bank account details | Enables the international payment |
| Board resolution | Supports corporate investment decisions |
| Share purchase agreement | Supports an acquisition of shares |
| Financial information | May support larger corporate transactions |
| Additional BoN documentation | May be required for transactions requiring further review |
The final list depends on the transaction and the requirements of the Authorised Dealer.
Other tax matters may become relevant where foreign shareholders or non-residents are involved, including non-resident withholding tax on services and non-resident shareholders tax.
Practical Checklist Before Sending Money Abroad
Before initiating an outward foreign investment from Namibia, we recommend checking the following:
- Confirm that the transaction qualifies as an investment.
- Confirm the current applicable investment allowance.
- Obtain the required Tax Clearance Certificate.
- Establish the source of the investment funds.
- Collect the foreign investment agreement or supporting documents.
- Confirm the beneficiary’s banking information.
- Contact an Authorised Dealer in Foreign Exchange.
- Ask whether the transaction falls within the bank’s delegated authority.
- Determine whether additional BoN approval or referral is required.
- Keep copies of the application and supporting documents.
- Retain evidence of the completed transfer for future reporting or investment-related transactions.
Where another person must act on your behalf in relation to Namibian tax matters, consider the process for assigning a Special Power of Attorney for Namibian tax matters.
Businesses should also maintain their broader regulatory compliance. For example, companies with employees may need to register as an employer for PAYE in Namibia.
For businesses setting up or restructuring their Namibian operations, additional business setup services in Namibia may cover incorporation, compliance and related administrative requirements.
Frequently Asked Questions
1. How much can a Namibian invest offshore?
The current Bank of Namibia exchange control FAQ states that qualifying private individuals may invest in a foreign country up to N$4 million per person per annum, subject to the applicable criteria, including a Tax Clearance Certificate.
Older BoN material refers to a N$6 million investment allowance. Because the published materials are from different periods, the current allowance should be confirmed with an Authorised Dealer before a transaction is initiated.
2. Do I apply directly to the Bank of Namibia?
Foreign exchange applications are generally made through an Authorised Dealer, such as a commercial bank. The bank determines whether it can process the transaction under its authority or whether the matter requires further consideration by the Bank of Namibia.
For other foreign exchange transactions, such as imports, the applicable form and procedure can differ. See this guide to applying for BoN Form A for foreign exchange for imports.
3. Do I need a Tax Clearance Certificate to invest offshore?
The current BoN FAQ identifies obtaining a Tax Clearance Certificate from Inland Revenue as a key criterion for private individuals using the offshore investment facility. Applicants should confirm the exact documentation required for their particular transaction with their Authorised Dealer.
If the transaction involves a foreign-owned Namibian company or a new business, applicants may also find the guides on how to register a company in Namibia as a foreigner and forms and fees for registering a private company in Namibia useful. A more general checklist is available in the guide to requirements for registering a company in Namibia.
Businesses that operate remotely can also review the remote business setup in Namibia options. Additional administrative support may include a virtual office or company secretarial services. For further assistance, businesses can contact our Namibia business setup team.