The Namibian Competition Commission (NaCC) has paid N$9 million in pecuniary penalties to the State Revenue Fund for the financial year ending March 2025. This action fulfils the commission’s obligation under Section 53(5) of the Competition Act No.2 of 2003, which mandates that all collected penalties be paid into the fund. 

The penalties stem from settlement or consent agreements that the commission reached with firms in various sectors. These include N$1 million from parties in non-financial sectors, N$5 million from the cement industry and N$3 million from the fuel and air transportation sectors. Investigations by the commission found that the implicated parties had violated the Act by implementing mergers without the required approval and by abusing their dominant market positions. 

According to the statement issued by the NaCC spokesperson Dina //Gowases, since its establishment in 2009, the commission has transferred N$65 million in penalties to the State Revenue Fund, collected through settlement agreements and court orders against companies that  breached competition rules. 

“The commission is tasked with promoting and protecting competition in Namibia. Established under the Competition Act No. 2 of 2003, its main goal is to prevent anti-competitive practices, thus fostering economic efficiency and consumer welfare,” she said. 

She added that the commission investigates and prosecutes restrictive business practices such as price fixing, bid rigging, and abuse of dominance. It also reviews mergers and acquisitions to ensure they do not substantially reduce competition and conducts market research to understand market dynamics, identify anti-competitive practices, and inform regulatory decisions that promote fair competition. By performing these roles, the commission helps maintain a fair and competitive business environment, encourages innovation, and safeguards consumer interests in Namibia’s economy. 

The commission elaborated on the critical role of penalties, stating that they act as a deterrent, punish harmful conduct that leads to higher prices and less consumer choice, promote corporate compliance, and help maintain a level playing field for all businesses. 

It emphasised that penalties for anti-competitive behaviour ultimately benefit the broader economy by discouraging market manipulation, encouraging genuine innovation, and protecting consumers from inflated prices and limited choices. This supports a more dynamic and prosperous economic environment founded on the principles of free and open competition. 

The commission concluded by urging all businesses operating in Namibia to ensure adherence to the Competition Act. It reaffirmed its commitment to enforcing the Act, not only through investigations and court referrals but also through advocacy programmes designed to promote awareness and foster a culture of compliance among businesses, consumers, and policymakers. 

-pmukokobi@nepc.com.na