By: Nghiinomenwa-vali Hangala
A competition assessment report done for the country’s competition watchdog has found more than 10 laws enhancing compliance burden asymmetry in the Namibian economy.
The results of the report were presented to stakeholders last week in Windhoek.
The consultants’ findings have revealed that the high costs of compliance in the country favour large incumbent enterprises over small and medium-sized enterprises (SMEs). Furthermore, they found that compliance costs and burdens also deter new entrants to the market, as a result reducing innovation.
Some of the compliance burdens found are company auditing requirements and licencing procedures. To this, the researchers proposed a systematic approach to correcting market distortions through regulatory coordination, barrier elimination, and competitive neutrality measures. They also recommended a reduction in regulatory barriers which deny SMEs access to competitive financing options.
Moreover, they highlighted the importance of protecting innovative SMEs from anti-competitive practices by dominant firms in the economy. The establishment of a one-stop-shop mechanism was also raised as a suggestion, which would in turn reduce the companies’ registration timeframes to efficient digital-first approaches.
The report also suggested that the country develop specialised programs helping SMEs understand compliance requirements and access competitive markets effectively.
Regarding SOEs’ natural and regulatory monopolies and privileges, the researchers proposed that a commercial rate of return requirement be mandated for SOE investments to eliminate automatic licencing advantages.
At the same time, the SOEs must be subjected to identical regulatory oversight as private competitors, with transparent pricing mechanisms. The Inceptus researchers stated that these reforms, among others, will be necessary in building a better, more inclusive economy.
“Ensure competition reforms promote broad-based economic participation, particularly benefitting historically disadvantaged persons and small enterprises in accessing competitive markets,” the report read.
In his delivery remarks during the stakeholder consultation on the report, Moses Pakote, the executive director in the Ministry of Industries, Mines and Energy, called on economic participants to deliberate on the findings not just to critique or reflect, but to constructively engage and commit to actionable outcomes.
He said the engagements will directly impact how the country enables businesses to thrive, how consumers are protected, and how a fairer, more prosperous Namibia is built. Pakote also urged all stakeholders to work together in ensuring that all practically possible recommendations are implemented.
“The implementation of some of the recommendations might require us to go beyond protecting the interests of the institutions that we represent for the greater good of our people, especially in the areas where there are overlapping mandates,” Pakote noted.
