Small Hard Trick - CUTS International

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Capacity Building on
Competition Policy in Select
Countries of Eastern and
Southern Africa (7Up3
Project)
Namibia: Preliminary country paper
Outline

Introduction to the Namibia (location, indicators)

National policies

Nature of NAM markets

Competition law
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Competition & econ regulation

Regional integration

Consumer protection
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Concluding remarks
Indicator
Value
Current GDP level (2003)
US$4,964 million
Average GDP growth (1990 – 2003)
3.1%
Per capita income
US$1,960
Gini coefficient (1994 census)
0.70
Unemployment rate (2000 census)
33.8%
Population (2004 estimate)
1.97 million
Population growth rate (1991 – 2001)
2.6%
Literacy rate (2002)
83.3%
Life expectancy (2002)
41.5 years
Policies affecting
competition
1. Development policy
• TDP (91/2 – 93/4)
• NDP1 (95/6 – 99/0)
• NDP2 (01/2 – 05/6)
• Vision 2030
Development objectives:
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reduce poverty*
create employment*
promote economic empowerment
stimulate and sustain economic growth*
reduce inequalities in income distribution*
reduce regional development inequalities
promote gender equality and equity
enhance environmental and ecological
sustainability
combat the further spread of HIV/AIDS
2. Indus & Invest policies
 Private sector to take a lead
 Govt to create environ
 Govt to attract Investment
 Consistency in policy
 Proper communication
 Prevent further monopolies
 Limited intervention
 Value addition, exports
3. EPZ
Foreign Investment Act (Act no. 27 of 1993),
incentives
 No VAT on purchase & import of machinery
 Buildings written off at 20% (1st), 8% (10)
 Expo promo allowance. 25%
 Corporate tax abatement of 50%, 5yrs
 Others
4. Trade policy
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WTO requirements
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SACU Agreement
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Diversification of exports: primary to manufactures
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Diversification of export destinations, economic
development.
Trade barriers
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Tariffs on imports (SACU)
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Namibia Agronomic Board
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The Meat Board of Namibia
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Some equivalence to export subsidies
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Exchange controls
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Import/Export Licensing
Labour policy
• access to finance
• development of markets for SME products
• provision of information on input sources and the
promotion of group purchasing schemes
• development of sites and premises
• provision of support training in the form of
mentoring and after-care services
Labour policy - goals
• Previously disadvantaged persons
• equality of opportunity for women
• maternity leave and employment security for women
• promote sound Labour relations and fair employment practices
• lay down certain obligatory minimum basic conditions of
service for all
• health, safety and welfare of people at work and to prevent the
abuse of child labour
Labour policy
• Labour Act, 1992
• The Social Security Act, 1994
• Employment policy, 1997
• Affirmative action, 1998
Nature of Namibian
markets
The Competition
law in Namibia
The competition Act, 2003
• objectives
• Application
• Independence, capacity & powers of NCC
• Restrictive Business Practices
Interface between
competition and
economic regulation
in select sectors
Market structures in Select
industries
• Electricity supply Industry
• communication and transport Industries
• Financial Services Industry
Regional integration
• WTO
• SACU
• CMA
• SADC
• COTONOU
Consumer protection
• NCL
• NAMFISA
• Other e.g. financial sector