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  Competition & econ regulation  Regional integration  Consumer protection  Concluding remarks

IndicatorValue Current GDP level (2003)US$4,964 million Average GDP growth (1990 – 2003)3.1% Per capita incomeUS$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 [1]

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: 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% (1 st ), 8% (10)  Expo promo allowance. 25%  Corporate tax abatement of 50%, 5yrs  Others

4. Trade policy WTO requirements SACU Agreement Diversification of exports: primary to manufactures Diversification of export destinations, economic development.

Trade barriers Tariffs on imports (SACU) Namibia Agronomic Board The Meat Board of Namibia Some equivalence to export subsidies Exchange controls 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