The Namibian Competition Commission (NaCC) says it continues to face major challenges in reviewing cross-border mergers, particularly those originating from South Africa, due to differing market definitions, delayed notifications, and limited information sharing among regional regulators.
Director of the Mergers and Acquisitions Division, Johannes Ashipala, said Namibia’s economic structure makes merger assessments more complex, as most sectors remain highly concentrated and heavily dependent on imports.
“Certain mergers result in fewer independent firms, which increases coordination challenges in already concentrated sectors. When you look at the structure of the economy, you realise there has not been much entry in some of these markets,” he said.
Ashipala explained that Namibia often defines markets differently from South Africa and other regional competition authorities, complicating joint assessments and the implementation of remedies.
“In Namibia, we may focus on local or regional markets, whereas other authorities such as Botswana or South Africa might adopt a national market definition. The findings are therefore not always the same, and that creates implementation challenges,” he said.
He noted that most mergers affecting Namibia are first notified in South Africa, which delays the local review process and limits the NaCC’s ability to influence the final outcomes.
“In most cases, merging parties go to South Africa first and only come to Namibia once that process is concluded. By the time they reach us, the market outcomes are already shaped, and we are told there are no issues,” Ashipala said.
He added that mergers involving South African firms often result in high concentration levels across the region.
“In several cases, combined market shares exceed 65 to 75%, increasing the risk of monopolisation. Smaller economies like ours face additional pressure because we depend on imports, and such mergers can reduce diversity and entry,” he said.
Ashipala also pointed out that confidentiality laws restrict the exchange of data with regional counterparts, hindering effective cooperation.
“While we encourage cooperation, confidentiality provisions limit how much we can share. Confidentiality waivers would greatly assist in improving cross-border merger analysis,” he said.
He emphasised that addressing these issues is crucial to ensuring that mergers driven by South African markets do not undermine competition and consumer welfare in Namibia and other smaller economies in the region.
