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16 August 2005 2
Overview
• Nature of Namibian markets
• National policies affecting competition
• Competition law
• Competition & economic regulation
• Consumer protection
• Concluding remarks
16 August 2005 3
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 2005 4
Policies affecting competition
• Development policy
• Industrial & Investment policies
• Trade policy
• SME policy
• Labour policy
• Policy harmonisation
16 August 2005 5
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 2005 6
Development objectives (cont.)
• promote gender equality and equity
• enhance environmental and ecological sustainability
• combat the further spread of HIV/AIDS
16 August 2005 7
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 2005 8
Industrial policy (cont.)
• Prevent further monopolies
• Limited intervention
• Value addition, exports
16 August 2005 9
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 2005 10
Trade policy
• WTO requirements
• SACU Agreement
• Diversification of exports & value addition
• Diversification of export destinations
16 August 2005 11
Trade barriers
• Tariffs on imports (SACU)
• Some equivalence to export subsidies
• Exchange controls
• Import/Export Licensing
16 August 2005 12
Labour policy & law
• Labour Act (1992, 2004)
• The SSC, 1994
• Employment policy, 1997
• Affirmative Action, 1998
16 August 2005 13
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 2005 14
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 2005 15
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 2005 16
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 2005 17
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 2005 18
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 2005 19
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 2005 20
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 2005 21
Restricted business practices
• Collusive practices
• Abuse of dominant position
• Some mergers
16 August 2005 22
Implementation
• Namibia Competition Act due for enforcement
• 12 month transitional period
16 August 2005 23
Competition & Economic Regulation
• Electricity Sector
• Communication and transport sectors
• The Financial sector
16 August 2005 24
Consumer protection
• NCL established in 1988
• Major traders & regulators have consumer care sections
• e.g. NAMFISA has consumer educative information
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