Government is reconsidering Namibia’s long-standing restriction on the importation of vehicles older than 12 years, with Finance Minister Erica Shafudah admitting that the policy may have failed to achieve its intended purpose and instead made vehicles more expensive for consumers.
The review forms part of a broader assessment of customs regulations, import policies and trade rules following concerns raised by entrepreneurs during an engagement with government officials.
Shafudah said authorities have concluded that older vehicles continue to enter the country despite the restrictions, raising questions about the effectiveness of the policy.
“What we have realised is that the vehicles we do not allow to come directly into the market found their ways into Namibia anyway. Now we are asking ourselves what do we do. We only made these cars more expensive. We would have just allowed them to come straight. This is an old policy and we need to change it,” she said.
The restriction was originally introduced following concerns from vehicle dealers seeking protection from an influx of older imported vehicles.
However, Shafudah indicated that government now believes the policy may have increased costs without preventing the importation of older vehicles.
Her comments suggest a significant policy shift that could have far-reaching implications for consumers, vehicle dealers and the broader automotive market.
The review comes as government reassesses several trade and customs-related regulations that entrepreneurs argue are outdated and no longer aligned with modern business models.
Prime Minister Elijah Ngurare said government is committed to listening to concerns raised by entrepreneurs and finding solutions through engagement.
“What we must do in government is not to harass our own people. What we must do is to listen to our own people,” Ngurare said.
Shafudah also indicated that government is willing to revisit laws, regulations and even regional agreements where they no longer support economic development.
“When we put up our laws and rates, they served their time. The feedback that we are getting from you is saying to us revisit your policies, revisit your laws, revisit agreements,” she said.
The review is expected to include customs duties, valuation methods and regulations affecting e-commerce businesses, with government signalling a willingness to modernise rules that entrepreneurs believe are increasing costs and limiting growth.
