Can foreign nationals buy farms in Namibia?

Agriland Real Estate Service Offer: Investment Advice & Guidance

Foreign investment avenues are available. Agriland Real Estate has long-standing relationships with leading legal practices, and decades of experience in guiding clients through the setup of appropriate investment vehicles, investor status, due process and approvals with national and local government.

At a glance (for buyers)

Under Namibia’s current Agricultural (Commercial) Land Reform Act, 1995, a foreign national may not acquire agricultural land (or certain long-term occupation rights) without prior written consent from the Minister. The law also treats a change of controlling interest in a company/close corporation owning agricultural land as a form of “acquisition” for these purposes. As with investment regulations internationally, the regulatory requirements are similar to the concept of ultimate beneficial owner(s) (UBO) in other sectors.

Note: For insight into the processes and approvals required of the seller, we recommend having a look at Agriland Real Estate's article for sellers "Seller's Guide: Waiver application (State’s preferent right of purchase)".

1) What counts as “agricultural land” (and what doesn’t)

The Act defines “agricultural land” broadly, but excludes land in a local authority area or settlement area, among other exclusions. In practice, classification depends on location and zoning. The exception matters as “farm lifestyle” or "country lifestyle" properties near towns, known in Namibia as “weekend farms”, can fall outside the agricultural-land regime, and can therefore be acquired by foreign nationals.

Agriland Real Estate provides its clients with the information on the properties for sale.

2) The current rule: written ministerial consent

Section 58 provides (in substance) that, no foreign national may without prior written consent:

• register transfer of ownership of agricultural land; or

• enter agreements granting occupation/possession rights beyond specified thresholds (e.g., over 10 years or renewable arrangements that exceed 10 years in total).

In addition, if the controlling interest in a company/close corporation that owns agricultural land passes to a foreign national, it is deemed (for this regime) that the entity “acquired” the land at that time. This is typical for larger farming operations such as stock farms, game farms & lodges, as well as mixed & irrigation farms, as they are often held in legal entities.

Practical takeaway: “Buying through a company” is not automatically a workaround. Contact us for advice and options for your envisaged investment.

FAQ / Summary

Can a foreigner buy a farm in Namibia today?

In current law, acquisition of agricultural land by a foreign national generally requires prior written ministerial consent, and some long-term occupation rights also require consent. Defined exceptions and foreign investment avenues are available. Contact us for advice & guidance.

Is buying via a company a workaround?

Not necessarily. A change of control / controlling interest / ultimate beneficial owner(s) in an entity owning agricultural land can be treated as an “acquisition” for the purposes of the Act.

Note: For insight into the processes and approvals required of the seller, we recommend having a look at Agriland Real Estate's article for sellers "Seller's Guide: Waiver application (State’s preferent right of purchase)".

Reference to legislation & notes

1.      Current consolidated Act: NamibLII consolidated text and FAOLEX annotated PDF.

2.      General waiver regulations: FAOLEX annotated regulations.

3.      Foreign-acquisition regulations: FAOLEX annotated regulations.

4.      Current investment guidance: NIPDB Namibia Investment Guide and ENS summary of Volume 7.