Africa-Press – Namibia. Economic recovery could be possible with relaxed regulations and if State-owned Enterprises (SOEs) are discouraged from competing with smaller entrants to the market. These were the main recommendations of the Business Rescue Taskforce which handed over its interim report to President Hage Geingob today (Friday).
Emphasis was placed on the introduction of certain incentives that will help businesses, especially Small and Medium Enterprises (SMEs), to remain in operation and serve the Namibian economy.
The report comes after the appointment of the taskforce team earlier this year by President Geingob as a means to provide possible ways of economic recovery. It delves into issues that affect SMEs, State-owned Enterprises (SOE’s) and privately-owned businesses.
Reiterating on the key factors that cause most businesses to fail, the taskforce indicated that the Covid-19 pandemic has been the common denominator and a huge, major cause for shutdowns of the majority of businesses, especially SMEs.
As part of its recommendations to the central government, the Electricity Control Board, as well as local authorities and other relevant Institutional stakeholders, the taskforce requested these bodies to revisit some of their policies and apply principles that will favour entrepreneurship.
Some of the issues raised in the interim report believed to be affecting small business owners are the high cost of utilities and bylaws, while referring to a report that indicates Namibia has one of the highest utility costs in Southern Africa.
In promoting a healthy flow of business activities, the taskforce further suggested the temporary removal of good standings and other requirements that are likely to hinder the advancement of companies that are tender-based. The team also requested an arm of lenience to the renewal of licenses, especially when obtaining such licenses would cripple the business in question even further.
Responding to the President’s question on whether the findings provided in the interim report were that of individual business owners in Namibia, the team indicated that it has consulted various locally-owned business entities such as Dinapama Manufacturing, among others. The taskforce added that most of the locally-owned companies are appealing to the Namibian nation to support local businesses, in order to promote a sustainable market for Namibians, by Namibians.
Concluding on its recommendations and suggestions before top management, the taskforce made a practical example of regulatory bodies such as the National Petroleum Corporation of Namibia (Namcor) that turn into direct competitors, which in their view creates an even narrower path to the market, and as such could result in business closures.
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