Business lobby group frets over Investment Bill

The Economic Policy Research Association (EPRA) has voiced concerns over the planned tabling of the Investment and Promotion Facilitation Bill, saying it will drive investors out of Namibia.

This follows a recent pronouncement by industrialisation and trade minister Lucia Iipumbu that the Bill will be promulgated within this year.

“EPRA notes with concern that the minister intends to table the Investment Bill this year already, while the public has not been provided with a new draft yet, and it appears that the new draft will not be availed for further consultation. The previous draft contained nothing that could possibly promote local or foreign investment,” EPRA consultant Eben De Klerk said.

The Bill would have the opposite effect of driving investors out of Namibia, instead of inviting investors into the country, he said.

“It clearly intended to put in place yet another institution of extraction, whereby government will dictate who may invest, who may own businesses in Namibia, and where investment will be allowed. This will be extremely harmful for Namibia's private sector, business environment, and the economy, and will severely hamper job creation."

The timing of the Bill was not opportune, given the rate of unemployment in Namibia, he added.

“Namibia cannot afford this, as some economists estimate that the unemployment already stands at 40%, which will mean that Namibia has by far the highest unemployment rate in the world. We urge the minister to avail the latest draft for further consultations before tabling the Bill,” De Klerk said.

Consulted widely

During an engagement with a business delegation from Brazil, Iipumbu said her ministry made concerted efforts to ensure it consulted widely.

“We have done extensive consultations. We brought those inputs that came from consultations in and it went to the legal team to work them into the Bill,” she said.

A team of legal drafters were also working to finalise a set of regulations that will guide the Bill.

“On the sidelines, we are consulting on the regulations just to make sure that by the time the Bill is tabled, the regulations are also ready so that they can take effect immediately. We have taken a three-pronged approach; we are working on the Bill, we are working on the policy and are working on the regulations,” Iipumbu said.

Once in law, the Bill intends to provide for the promotion of sustainable development and growth by mobilising and attracting domestic and foreign investment, the industrialisation ministry said.