Creation of a World-Class Revenue Agency: the Promise of Tax Justice in Namibia

This report presents a strategic framework to enhance Namibia’s economic  development through three interrelated areas: (1) strengthening fiscal governance in the  uranium mining sector, (2) fostering the growth of small and medium-sized enterprises  (SMEs), and (3) modernizing the Namibia Revenue Agency’s (NamRA) Compliance Risk  Management (CRM) systems. The analysis draws on extensive field research, stakeholder  interviews, and comparative international benchmarks to identify policy gaps and propose  actionable reforms. 

First, the report addresses the urgent need to improve revenue collection from  Namibia’s uranium mining sector, which currently yields disproportionately low tax revenues  despite the country’s status as a top global uranium producer. Through detailed diagnostics, it  reveals systemic issues including fragmented oversight among key ministries, weak  enforcement of disclosure and licensing requirements, opaque ownership structures,  inadequate transfer pricing rules, and legal constraints posed by bilateral investment treaties  (BITs). The report recommends establishing a Uranium Taxation Task Force (UTTF),  enhancing data sharing among agencies, reforming transfer pricing and royalty frameworks,  and renegotiating BITs to safeguard fiscal sovereignty. Second, the report examines the role of SMEs in driving inclusive economic growth.  Despite their importance, SMEs in Namibia face major constraints: limited access to finance,  high informality, disproportionate tax burdens under a flat corporate tax regime, and  inconsistent policy targeting due to unclear definitions. The report proposes a suite of reforms,  including adopting a tiered SME tax system, launching a National SME Development Fund,  streamlining tax refund processes, and standardizing SME classifications to enable coherent  policy design and support mechanisms. Third, the report outlines a blueprint for operationalizing NamRA’s Compliance Risk  Management strategy to strengthen tax compliance. Drawing inspiration from international  models, particularly Indonesia’s CRM system, the report recommends leveraging data-driven  approaches and launching pilot projects to improve risk detection, debt management, and  taxpayer supervision. The goal is to build a predictive, risk-based enforcement model that  maximizes voluntary compliance and ensures sustained public investment capacity. 

Collectively, these recommendations aim to unlock Namibia’s potential for sustainable  and equitable growth. By addressing governance inefficiencies, improving tax fairness, and  enabling entrepreneurial dynamism, the country can better translate its resource wealth into  long-term prosperity. The report emphasizes that such transformation will require coordinated  institutional reform, political will, and a vision of development anchored in transparency,  inclusivity, and fiscal resilience.

This project is supported by Professor Jenik Radon.