IMELDA AMBONDO
Namibia still struggles with restrictive practices including price-fixing, collusive tendering, and market division in telecommunications, finance, and energy industries, a study commissioned by the Namibia Competitions Commission last week revealed.
The Competition Impact Assessment Study flagged rampant unfair pricing and discriminatory practices in most industries in the country.
The study revealed that 43% of the interviewed Namibian consumers believe competition is limited in most industries while a 75% sample said they see entry barriers in certain industries hindering new businesses.
About 57% of the sample believe that Namibia needs to strengthen policies to promote competition.
The study used a mix of systematic law reviews, in-depth interviews across 12 sectors, consumer surveys, and documentary analysis.
Some of the distortions identified include State Enterprise privileges in 15 or more laws including giving automatic licenses, tax exemptions, and guaranteed funding to entities like Telecom Namibia, and NamibRe.
The study aims to audit over 160 laws, policies, and regulations that may distort competition across the country’s economic sectors.
Speaking at the stakeholder consultation workshop, Chief Executive Officer of the Namibian Competition Commission, Vitalis Ndalikokule said the study marks an important milestone in the ongoing journey towards a more inclusive, efficient and competitive economic landscape.
“ We are gathered here to engage in discussion around the Competition Impact Assessment Study, a project that seeks to undertake a comprehensive audit of laws, policies, and regulations that may have the potential to distort competition in our markets,” he said.
Ndalikokule said the study was commissioned under the National Competition Policy, with technical support from Inceptors Pty Ltd, the commercial arm of the University of Namibia.
“Their expertise brings valuable academic and analytical rigour to the exercise, ensuring that the findings are grounded in evidence-based research and aligned with international best practices,” he added.
Executive Director of the Ministry of Industries, Mines and Energy, Moses Pakote said the study will improve Namibia’s economic transformation.
“It gives me great pleasure to address you today at this important stakeholder consultation workshop, convened for the Competition Impact Assessment Study, a key component of the implementation roadmap for our National Competition Policy,” he said.
Pakote said the National Competition Policy provides a coherent framework for fostering effective competition across all sectors, in alignment with Vision 2030 and Namibia’s National Development Plans.
“The purpose of this study is clear: to identify laws, policies, and regulations, whether existing or proposed, that may hinder, distort, or unnecessarily restrict competition in the Namibian market,” he said.
Professor Dunia Zongwe, representing the University of Namibia consultancy said the study covered more than 160 laws, policies, and regulations.
It covered sectors including trade and industry, business regulation, media and communications, land and housing, energy and utilities, and financial services.
The consultancy team outlined a reform framework addressing regulatory coordination, entry barrier elimination, competitive neutrality, and enforcement enhancement.
The study proposes a phased implementation of regulatory coordination, entry barrier reduction and infrastructure sharing enforcement.
It said the reforms will boost investment, enhance innovation and job creation, improve consumer welfare, increase economic diversification, and ensure sustainable growth aligned with Namibia’s Vision 2030.
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