1. 16 August 20051 Capacity Building on Competition Policy in Namibia Rehabeam Shilimela NEPRU

2. 16 August 20052 Overview Nature of Namibian markets National policies affecting competition Competition law Competition & economic regulation Consumer protection Concluding remarks

3. 16 August 20053 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

4. 16 August 20054 Policies affecting competition Development policy Industrial & Investment policies Trade policy SME policy Labour policy Policy harmonisation

5. 16 August 20055 Development objectives: reduce poverty* create employment* promote economic empowerment stimulate and sustain economic growth* reduce inequalities in income distribution* reduce regional development inequalities

6. 16 August 20056 Development objectives (cont.) promote gender equality and equity enhance environmental and ecological sustainability combat the further spread of HIV/AIDS

7. 16 August 20057 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

8. 16 August 20058 Industrial policy (cont.) Prevent further monopolies Limited intervention Value addition, exports

9. 16 August 20059 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

10. 16 August 200510 Trade policy WTO requirements SACU Agreement Diversification of exports & value addition Diversification of export destinations

11. 16 August 200511 Trade barriers Tariffs on imports (SACU) Some equivalence to export subsidies Exchange controls Import/Export Licensing

12. 16 August 200512 Labour policy & law Labour Act (1992, 2004) The SSC, 1994 Employment policy, 1997 Affirmative Action, 1998

13. 16 August 200513 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

14. 16 August 200514 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

15. 16 August 200515 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. 16 August 200516 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

17. 16 August 200517 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.

18. 16 August 200518 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

19. 16 August 200519 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.

20. 16 August 200520 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

21. 16 August 200521 Restricted business practices Collusive practices Abuse of dominant position Some mergers

22. 16 August 200522 Implementation Namibia Competition Act due for enforcement 12 month transitional period

23. 16 August 200523 Competition & Economic Regulation Electricity Sector Communication and transport sectors The Financial sector

24. 16 August 200524 Consumer protection NCL established in 1988 Major traders & regulators have consumer care sections e.g. NAMFISA has consumer educative information

25. 16 August 200525 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