Capacity Building on Competition Policy in Select Countries of Eastern and Southern Africa (7Up3 Project) Namibia: Preliminary country paper.

Capacity Building on Capacity Building on Competition Policy in Select Competition Policy in Select

Countries of Eastern and Countries of Eastern and Southern Africa (7Up3 Southern Africa (7Up3

Project)Project)

Namibia: Preliminary country paperNamibia: Preliminary country paper

OutlineOutline Introduction to the Namibia (location, indicators)

National policies

Nature of NAM markets

Competition law

Competition & econ regulation

Regional integration

Consumer protection

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 policy1. Development policy

• TDP (91/2 – 93/4)

• NDP1 (95/6 – 99/0)

• NDP2 (01/2 – 05/6)

• Vision 2030

Development objectives:Development objectives:• 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 policies2. 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. EPZ3. 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 policy4. Trade policy

• WTO requirements

• SACU Agreement

• Diversification of exports: primary to manufactures

• Diversification of export destinations, economic

development.

Trade barriersTrade barriers

• Tariffs on imports (SACU)

• Namibia Agronomic Board

• The Meat Board of Namibia

• Some equivalence to export subsidies

• Exchange controls

• Import/Export Licensing

Labour policyLabour 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 - goalsLabour 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 policyLabour 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, 2003The 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 Market structures in Select industriesindustries

• Electricity supply Industry

• communication and transport Industries

• Financial Services Industry

Regional integrationRegional integration

• WTO

• SACU

• CMA

• SADC

• COTONOU

Consumer protectionConsumer protection

• NCL

• NAMFISA

• Other e.g. financial sector