16 August Capacity Building on Competition Policy in Namibia Rehabeam Shilimela NEPRU

16 August Overview Nature of Namibian markets National policies affecting competition Competition law Competition & economic regulation Consumer protection Concluding remarks

16 August Nature of Namibian markets A small open economy Linkages with South African economy The Common Monetary Area Namibia maintains several monopolies No subsidies, but there are other barriers

16 August Policies affecting competition Development policy Industrial & Investment policies Trade policy SME policy Labour policy Policy harmonisation

16 August Development objectives: reduce poverty* create employment* promote economic empowerment stimulate and sustain economic growth* reduce inequalities in income distribution* reduce regional development inequalities

16 August Development objectives (cont.) promote gender equality and equity enhance environmental and ecological sustainability combat the further spread of HIV/AIDS

16 August Industrial policy White paper on industrial development 1992: Private sector to take a lead Govt to create environment Govt to attract Investment Consistency in policy Proper communication

16 August Industrial policy (cont.) Prevent further monopolies Limited intervention Value addition, exports

16 August EPZ policy Foreign Investment Act (1993): No VAT on purchase & import of machinery Buildings written off at 20% (1st), 8% (10) Expo promotion allowance 25% Corporate tax abatement of 50%, 5yrs Others

16 August Trade policy WTO requirements SACU Agreement Diversification of exports & value addition Diversification of export destinations

16 August Trade barriers Tariffs on imports (SACU) Some equivalence to export subsidies Exchange controls Import/Export Licensing

16 August Labour policy & law Labour Act (1992, 2004) The SSC, 1994 Employment policy, 1997 Affirmative Action, 1998

16 August Labour policy goals Previously disadvantaged persons Equality of opportunity for women Promote sound Labour relations & fair employment practices Some obligatory min basic conditions of service for all Health, safety and welfare of people at work & prevention of child labour abuses

16 August Labour Act Act of 1992 established Labour Advisory Council, Labour courts & set out basic conditions for employment Act of 2004 replaced the former, but the competition Act made reference the 1992 Act. Latest analyses indicates that the 2004 Act is bound to cost firms more

16 August The Competition policy & law The Regulation of Monopolistic Conditions Amendment Act, 1958 (Act 14 of 1958) Objectives of the competition Act, 2003 Application of the Act Namibia Competition Commission Restricted business practices Implementation

16 August Competition Act: Objectives Promotion of efficiency, adaptability and dev of the economy; To provide consumers with competitive prices and product choices; To promote employment and advance the social and economic welfare of Namibians; To expand opportunities for Namibian participation in world markets

16 August Competition Act: objectives (Cont.) To ensure that small undertakings have an equitable opportunity to participate in the Namibian economy; To promote greater spread of ownership, in particular to increase ownership stakes of historically disadvantaged persons.

16 August Application The Act applies to all economic activity in Namibia, or having an effect on Namibia, except the following: Collective bargaining activities or collective agreements negotiated or concluded in terms of the Labour Act, 1992 Concerted conduct designed to achieve a non- commercial socio-economic objective; and

16 August Application (cont.) In relation to goods or services, which the Minister of Trade and Industry, with the concurrence of NCC, declares by notice in the Government Gazette, to be exempt from the provisions of this Act.

16 August Namibia Competition Commission Independence, powers & capacity Appointed by the Minister, 3 year term (+) Approval of the minister required for key decisions Remuneration determined at least by 2 ministers Limited staff

16 August Restricted business practices Collusive practices Abuse of dominant position Some mergers

16 August Implementation Namibia Competition Act due for enforcement 12 month transitional period

16 August Competition & Economic Regulation Electricity Sector Communication and transport sectors The Financial sector

16 August Consumer protection NCL established in 1988 Major traders & regulators have consumer care sections e.g. NAMFISA has consumer educative information

16 August Concluding remarks Need for regional collaboration on competition Government monopolies for other national goals, liberalisation likely to be held back for some time Limited consumer protection at national level