Africa-Press – Namibia. In its current form, the proposed Investment Promotion and Facilitation Bill is repressive, absolutist and centralises power in the hands of the line minister according to McHenry Venaani. The Bill, tabled by trade minister Lucia Iipumbu in the National Assembly a fortnight ago was withdrawn last week “until further notice”.
When tabling the Bill in the National Assembly, Iipumbu said it would create a conducive environment that can attract, retain and facilitate both domestic and foreign sustainable investments.
The Bill was designed to replace the Namibia Investment Promotion Act (NIPA), which was enacted in 2016. The Bill will, among others, give the trade minister unlimited powers to decide who may invest, how much may be invested, who must partner with investors, on what conditions investments may proceed, as well as when, how and if investments can be repatriated has caused an uproar in the private sector. Venaani on Tuesday said this clearly violates the constitutional protection outlined in Article 21 (1) of the Namibian Constitution which states: “All persons shall have the right to practice any profession or carry on any occupation, trade or business.”
“As a young constitutional democracy, this republic ought to strive to always uphold the ideals of the Constitution. Instead, this proposed lacklustre and flimsy Bill directly opposes that,” said Venaani, who is the leader of the official opposition, the Popular Democratic Movement (PDM).
According to him, the Bill severely waters down the powers and functions of the Namibia Investment and Promotion Development Board (NIPDB) and reduces it to a “toothless yes-man”.
He said these concerns have also been shared by NIPDB chief executive officer (CEO) Nangula Uaandja who according to Venaani, flagged distress in the NIPDB being offered no independence under this Bill. He said this is despite comparative analysis of investment laws, for example in ASEAN countries clearly illustrating that investment promotion agencies require independence to foster a conducive and attractive investment environment. Particularly, he said of more concern is the fact that the IPFB gives the line minister the right to, in consultation with the chief of the Namibian Intelligence Service, direct and regulate investments “in a manner necessary to maintain security and international peace”.
Thus, he said not only does this Bill regulate the fundamental parameters of the country’s ramshackle investment and business environment, it also polices and militarises the business environment in which potential investors seek to operate, with heavy offences and penalties outlined for offenders within the Bill.
“I reject the consideration of a Bill which would effectively deter the much-needed investment in an already competitive international investment arena and entreats the line ministry, in consultation with the necessary stakeholders, to not only review the Bill holistically, but to also consider and implement the recommendations posed by the NIPDB where necessary,” he said.
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