NACC Hosts Competition and Consumer Week

THE Namibian Competition Commission this week hosted the annual competition and consumer workshop with CEO, Mihe Gaomab II saying that competition law and fair competition are important to the economy.

Speaking during a workshop for SMEs under the theme, Competition law, policy and SMEs Gaomab the commemoration event is an important aocacy forum on competition law which began in 2012, aimed to sensitise the public on the importance of compliance with competition law and policy, the importance of fair competition to the economy.

He said the event also created a platform for exchange of ideas about competition issues and concerns.

He said this year, the NaCC was trying to highlight the importance of competition law to SMEs, challenges faced by SMEs, as well as the potential to grow as far as competition law and policy is concerned.

“The significant of SMEs to economic growth and development is widely recognised worldwide and SMEs are sometimes regarded as the engine of growth in developing economies. This is because they provide employment and they are again regarded the major source of technological innovation and new products. SMEs are the main sources of employment across many economies and play a vital role of poverty reduction in both urban and rural areas,” he said.

Gaomab said competition law is cognisant of the importance of SMEs to the economy and is aimed to assist and promote SME development in the Namibian economy.

“One of the objectives of competition policy, as far as SMEs are concerned, is to create an enabling regulatory environment by opening market access and accumulated market developments for SMEs,” he said.

He said the enforcement of competition law may in reality sometimes be incompatible with SME interests.

“For this reason, this event was organised to encourage stakeholders to share their views and opinions on SMEs competition related matters. An effective regulation is often a precondition for successful market dynamics, hence is imperative if we are to understand each other’s interest, concerns and the opportunity for progress,” he said.

Gaomab said competition is central to the operation of markets, and fostering of innovation, productivity and growth, all of which create wealth and reduce poverty.

“It provides an incentive for firms to perform at their best, producing high quality goods and services at cheap prices, thus increase consumer welfare. Competition law and policy are recognised globally as being complementary factors in achieving competitiveness in an economy, a tool designed to assist in promoting competitiveness by ensuring a healthy market.”

Gaomab said competition law protects SMEs by deterring bigger companies from adopting abusive or other anti-competitive practices.

The law makes it difficult for big companies to impose artificial entry barriers to various markets, thereby helping SMEs to enter the markets and trade more freely, the NaCC chief said.

“SMEs could also benefit from the lower costs of inputs that might occur in a more competitive environment.”

Source : The Namibian