Windhoek: The Economic Association of Namibia (EAN) has expressed support for the government's initiative to enhance the country's investment framework through the Draft Investment Promotion and Facilitation Bill. However, EAN has highlighted the need for refinements to the proposed legislation to more effectively attract and facilitate investment.
According to Namibia Press Agency, EAN issued a media statement acknowledging that the Bill signifies a significant move towards consolidating investment policy, improving coordination among institutions, and aligning investment decisions with Namibia's long-term development goals. The association noted that provisions related to investor rights, dispute resolution, performance agreements, and transparency indicate an intention to improve predictability and accountability within the investment regime.
Despite these positive aspects, EAN pointed out that the Bill currently emphasizes regulation over facilitation. The association argued that while regulation is a crucial component of any investment framework, the Bill's current focus on approval, control, and compliance mechanisms may hinder the promotion of investment. This emphasis, according to EAN, could create perceptions of complexity and uncertainty for potential investors, especially in a competitive global market.
EAN also stressed the importance of aligning the Bill with Namibia's regional and continental commitments. As a member of initiatives such as SACU, SADC, and the African Continental Free Trade Area, Namibia aims to position itself as an open and competitive investment destination. EAN suggested that the Bill should support this ambition.
Concerns were raised by EAN regarding the scope of the proposed Act, specifically noting that Section 3 limits its application primarily to investors seeking incentives or operating in designated sectors. This raises questions about the regulatory framework for investments that fall outside these categories. The association called for clearer guidance on the designation of economic sectors and business activities, suggesting that additional clarity on classification criteria, review periods, and transition arrangements could reduce investor uncertainty.
Moreover, EAN expressed concern about the level of discretion afforded to ministers in the investment approval process. The association recommended additional guidance on the weighting or prioritization of criteria to enhance transparency, predictability, and consistency in decision-making. EAN warned that extensive approval requirements might disproportionately impact micro, small, and medium-sized enterprises, suggesting that a more proportionate approach could prevent the unintended discouragement of smaller investments.
Finally, EAN emphasized the need for clearer institutional coordination to avoid duplication, asserting that refinements are necessary for the Bill to effectively support investment, job creation, and inclusive economic growth.