Cabinet has urged relevant ministries to implement the recommendations of the Business Rescue Task Force. This submission was made by the finance and public enterprises’ ministry on the progress achieved to date, with implementation of these recommendations such as the drafting of the new Business Law, enactment of the Banking Institutions Act, and creation of a pro-business environment as well as developing new markets planned.
The Business Rescue Task Force (BRTF) was appointed by late president Hage Geingob in July 2021 to review global and domestic business laws, policies and frameworks. The task force aimed to pursue the implementation of mentoring and empowerment programmes for struggling small and medium enterprises (SMEs), particularly those owned by previously- disadvantaged Namibians. Also, the entity aims to pursue enhanced service delivery to enable the ease of doing business within Namibia. At its 13th decision-making meeting on 6 August 2024, Cabinet directed four ministries, namely trade, finance, justice, and urban development to institute measures to address challenges experienced in the implementation of the recommendations of the BRTF.
There is no doubt that the impact of Covid-19 has been detrimental for businesses as it came at a time when the Namibian economy was already contracting due to a severe drought, declining commodity prices, and a depreciating Namibia dollar.
As one of the immediate business rescue initiatives, the task force recommended government to protect Namibian entrepreneurs by ensuring foreigners do not trade in areas where there is sufficient domestic capacity.
Also, when the Namibia Local Business Association (Naloba) met with President Nangolo Mbumba at State House earlier this month, they expressed concern over issues they see as pertinent to the survival of local businesses. At the time, Naloba vice president Peter Amadhila questioned the delay in the implementation of the Investment Promotion Bill.
“The absence of this Bill is creating anarchy in the country. Who is delaying this important piece of legislation? I believe the Bill will protect local businesses against foreign investors,” Amadhila said at the time. He advised that foreign investors should not come to Namibia to sell ‘vouchers’, as this is akin to taking bread out of Namibians’ mouths. He, therefore, advocated for foreign investors to focus on larger opportunities that fall beyond the scope and capability of local businesses.
The BRTF further recommended banks to engage with clients in an out-of-the-box, innovative and practical approach to debt restructuring and consolidation.