The Namibian Competition Commission (NaCC) is set to review its fining fees and penalties while expanding its regulatory scope to accommodate emerging industries.
NaCC Chief Executive Officer Vitalis Ndalikokule said the review will assess whether existing penalties remain an effective deterrent.
“We are going to review and assess if these penalties that we have are still serving the purpose in terms of the law. If not, if things have changed, then we will do so,” Ndalikokule said.
The review according to NaCC CEO, is part of the commission’s new five-year strategy, spanning from 2025 to 2030, which aims to modernize competition regulations to cover new and evolving industries.
“The economy is growing. There are new sectors, new industries that are coming in. Those new sectors and new industries might not be properly catered for in the current law,” Ndalikokule noted.
He identified green hydrogen and artificial intelligence as key industries requiring regulatory oversight.
“You’re talking about green hydrogen, you’re talking about artificial intelligence, and all these, and all that needs to be provided for in the law,” he said.
Ndalikokule made these remarks at the Competition Law Seminar, hosted by Candace Competition Law Advisory Service (CCLAS) for procurement and compliance officers.
CCLAS Director Grace Mohamed emphasized the need for businesses to better understand competition law and compliance requirements.
“The class advisory was started in 2022, and what we have seen, firstly, is that we are competition law specialists, but because the Commission has increased its enforcement, right, and we see the amount of fines, people are being fined and businesses. It also became apparent to us that people don’t understand this thing called competition law,” Mohamed said.
She stressed the importance of ensuring compliance officers acquire the necessary skills to navigate regulatory obligations.
“The people that are responsible for making sure businesses comply must understand what this thing is and start paying attention to this thing. This is what informed us to do this seminar and to try and make it as practical as possible,” she explained.
South African Competition Commission Deputy Commissioner Hardin Ratshisusu highlighted the significant financial impact of competition law fines on businesses.
“Fines can be extremely harsh. After 25 years of enforcement and advocacy, along with repeated efforts by various groups visiting Namibia to push for stricter measures, there will be no excuse for not imposing the maximum penalties,” Ratshisusu said.
He cited ArcelorMittal South Africa Ltd as an example of a company still facing financial burdens due to outstanding penalties.
“For instance, ArcelorMittal South Africa Ltd, out of the R1.5 billion owed, they have paid less than a billion and still owe a significant amount in taxes. Some may argue that they have restructured under different entities, but even if fines are imposed, these companies remain uncompetitive,” he added.
