WINDHOEK – The Namibian Competition Commission (NaCC) is in the process of drafting a new national competition policy that will, contrary to assertions in some sectors of the economy, complement other equally important policies such as the industrial, trade and investment policies.
“While the competition policy provides an overarching policy perspective on the competitive process of business, the industrial policy aims to create industrial space in the economy. The two policies are therefore complementary in the sense that the latter creates room for industrialisation, whereas the former aims to create orderly conduct of industrialists for the benefit for industrial growth, employment creation, product creation that aids in poverty reduction and economic development,” explained the Chief Executive Officer of the NaCC, Mihe Gaomab II.
The revised Competition Act is also expected to include consumer protection provisions aimed at the protection of all consumers in Namibia. Said Gaomab: “The Competition Act will be amended to include enabling provisions on consumer rights with regard to consumer policy protection, product choices, affordable pricing, fair promotion or advertising, contractual arrangements, and shelving the right goods at the right place,” remarked Gaomab.
According to the NaCC chief, additional issues to be addressed in the new competition policy include cross-border trade or unfair trade practices and foreign competition issues that he described as important to define clearly in the new policy.
“The Competition Act, however, does not shy away from the attraction of foreign direct investment. Our emphasis, however, is to expand opportunities for Namibian participation in world markets, while recognising the role of foreign competition in Namibia,” he said.
“The word competition is of more importance in the sense that foreign role players on competition within the boundaries of Namibia are subject to the Competition Act and if found to contravene or engage in unfair competition that especially lessens competition as defined by the Act, the Commission is empowered by legislation, through a due process, to investigate and take recourse,” warned Gaomab. He added that the competition policy also aims at advancing a Competitive Neutrality Complaints function. Competitive neutrality is a policy that aims to promote efficient competition between public and private businesses in the country.
According to Gaomab, competitive neutrality requires that government business activities should not enjoy net competitive advantages over their private sector competitors simply by virtue of public sector ownership. “This is highly strategic and technical economic work and therefore a formal approach as envisaged by the NaCC is preferable,” he noted.
By Edgar Brandt