Namibia and Italy have signed a reciprocal investment promotion and protection agreement, marking an end to 18-month long negotiations. The purpose of the agreement is to enhance trade and investment flows between the two countries.
It is to be achieved by providing investors with an economic environment devoid of fear of losing investment capital through arbitrary or unfair measures taken by the contracting states. Italian investors operating or hoping to settle in Namibia will now have additional protection. The agreement sets out their rights, obligations and conditions for gaining fair compensation from the state.
The agreement forms definitions of investors and investments, covers issues of investment promotion and protection, investor treatment, expropriation and compensation of losses, transfer of capital and settlement of disputes.
The agreement is hoped to transform relations between Namibia and Italy from matters of cultural and political goodwill to a strong economic component guarded by the government's policy of economic diplomacy exercised by Namibian foreign missions. It is also expected to help foster closer ties between the countries and stimulate interest in other business sectors.
Namibia’s current exports to Italy include fish, raw hides, skins, leather and dimension stones. Italian exports to Namibia mainly constitute of fruits, nuts, ceramic products, vehicle parts and accessories. The value of exports to Italy amounts to N$243 million with imports from Italy standing at N$40 million.
