Investment Bill ‘could scare off investors’
• ‘Nothing in proposed bill makes investment more attractive’
The association implored the minister to see reason, adding: "Investment legislation must incentivise investment, not deter it".
The Economic Policy Research Association (EPRA) is pleading with trade and industrialisation minister Lucia Iipumbu not to proceed with the Namibian Investment Promotion and Facilitation Bill.
In a letter hand-delivered to the minister last week, EPRA cautioned that, in its current form, the bill would have a damning impact on Namibia’s investment environment.
“We humbly again submit that there is little to nothing in the proposed bill that makes investment more attractive. In reality, and what is written in the bill is the reality – not the pleasing imagery provided by those selling it - the bill simply proposes a host of additional obstacles for both local and foreign investors," the letter read.
"Most concerning is the fact that government intends to take full control over local and foreign investments, with the powers to decide who may invest, who investors may and even must partner with, in which industries may be invested, where and where not investments may be made, and prescribe with unlimited scope the requirements to which investors must comply with. "Honourable minister, we doubt that even in communist regimes do governments exert such extreme control over private sector investment. This does not bode well for investors, and definitely does not create a friendly investment environment, despite the altruistic idea that government may have. Investors will seek destinations where they are not dictated to, hampered and handicapped,” EPRA wrote.
In the dark
The ministry recently held stakeholder consultation meetings on the bill, but according to EPRA, it was largely in the dark about these discussions.
The association also lamented that it was only made aware of public invitations and planned consultation on Friday, 4 August, through social media, and informed that Friday, 11 August, was the deadline for input - four days after the consultation.
“Dear honourable minister, we implore you not to proceed with the bill. If there is indeed a need for legislation on investment, and note that many highly successful countries do not have dedicated investment legislation, we propose a completely different approach.
"We offer our assistance to assist you in identifying the obstacles and risks to make the bill a truly investor-friendly bill. Investment legislation must incentivise investment, not deter it,” EPRA's letter read.
Its advice is that government must create an enabling environment and not control it. The association pointed out that sustainable economic growth and job creation stems from an open, free market economy.
No sincere debate
EPRA further cautioned that a closed, government-controlled economy cannot flourish and, according to its economic data, from 2016, this has already been abundantly clear.
“The following is clear from the said consultation in Windhoek last week, there is no intention to make any substantial changes to the November 2021 version [of the bill]. The ‘consultation’ was not aimed at sincere debate on the principles of an optimal investment environment for Namibia. The concerns raised by EPRA as well as several other experts since November 2021 have not been addressed.
"From the aforementioned, we deduct that it remains government’s intention to proceed with a bill that will remain damning for Namibia’s investment environment.”
The minister confirmed receipt of questions sent by Namibian Sun, but is yet to respond.
[email protected]
In a letter hand-delivered to the minister last week, EPRA cautioned that, in its current form, the bill would have a damning impact on Namibia’s investment environment.
“We humbly again submit that there is little to nothing in the proposed bill that makes investment more attractive. In reality, and what is written in the bill is the reality – not the pleasing imagery provided by those selling it - the bill simply proposes a host of additional obstacles for both local and foreign investors," the letter read.
"Most concerning is the fact that government intends to take full control over local and foreign investments, with the powers to decide who may invest, who investors may and even must partner with, in which industries may be invested, where and where not investments may be made, and prescribe with unlimited scope the requirements to which investors must comply with. "Honourable minister, we doubt that even in communist regimes do governments exert such extreme control over private sector investment. This does not bode well for investors, and definitely does not create a friendly investment environment, despite the altruistic idea that government may have. Investors will seek destinations where they are not dictated to, hampered and handicapped,” EPRA wrote.
In the dark
The ministry recently held stakeholder consultation meetings on the bill, but according to EPRA, it was largely in the dark about these discussions.
The association also lamented that it was only made aware of public invitations and planned consultation on Friday, 4 August, through social media, and informed that Friday, 11 August, was the deadline for input - four days after the consultation.
“Dear honourable minister, we implore you not to proceed with the bill. If there is indeed a need for legislation on investment, and note that many highly successful countries do not have dedicated investment legislation, we propose a completely different approach.
"We offer our assistance to assist you in identifying the obstacles and risks to make the bill a truly investor-friendly bill. Investment legislation must incentivise investment, not deter it,” EPRA's letter read.
Its advice is that government must create an enabling environment and not control it. The association pointed out that sustainable economic growth and job creation stems from an open, free market economy.
No sincere debate
EPRA further cautioned that a closed, government-controlled economy cannot flourish and, according to its economic data, from 2016, this has already been abundantly clear.
“The following is clear from the said consultation in Windhoek last week, there is no intention to make any substantial changes to the November 2021 version [of the bill]. The ‘consultation’ was not aimed at sincere debate on the principles of an optimal investment environment for Namibia. The concerns raised by EPRA as well as several other experts since November 2021 have not been addressed.
"From the aforementioned, we deduct that it remains government’s intention to proceed with a bill that will remain damning for Namibia’s investment environment.”
The minister confirmed receipt of questions sent by Namibian Sun, but is yet to respond.
[email protected]
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