Namibia's Tourism Under Scrutiny: Competition Commission Faces Intense Probe
The Namibian Competition Commission (NaCC) is facing significant backlash over its ongoing investigation into tourism partnerships involving communal conservancies. Critics, particularly the Namibian Chamber of Environment (NCE), argue that the probe risks undermining a vital model for rural development and conservation. NCE chief executive Chris Brown has urged the NaCC to halt its current investigation into Ultimate Safaris and three conservancies in the Kunene region: Doro !Nawas, Sorris Sorris, and Twyfelfontein. Instead, Brown advocates for an investigation into the alleged anti-competitive dominance of Namibia Wildlife Resorts (NWR) within national parks, specifically highlighting its operation of the Sossusvlei shuttle service.
This dispute has brought to the forefront a critical national debate concerning whether Namibia's competition laws are being applied in a manner that could inadvertently jeopardize the long-established communal conservancy tourism model. This model has been instrumental in supporting rural livelihoods and conservation financing for decades in Namibia.
The NaCC confirmed receipt of NCE's letter and defended its actions, asserting that the initiation of investigations falls squarely within its statutory functions. The commission emphasized its empowerment by the Competition Act to investigate potential restrictive business practices across all economic sectors. The genesis of the current investigation lies in a complaint lodged by indigenous mining prospector Timoteus Mashuna, who alleged anti-competitive conduct through exclusive tourism arrangements between the aforementioned conservancies and Ultimate Safaris.
Following Mashuna's complaint, the NaCC issued a cautionary notice on 18 December 2024, instructing the parties to cease conduct potentially infringing the Competition Act. After an initial period where the involved parties sought intervention from the Ministry of Environment and Tourism, the NaCC decided to proceed with a formal investigation, a decision communicated to Ultimate Safaris managing director Tristan Cowley and Mashuna on 12 March.
Chris Brown of the NCE strongly criticized the NaCC's approach, suggesting it reflects a fundamental misunderstanding of Namibia's tourism sector. He stated that the commission "does not understand the tourism industry or appreciate the severe consequences of its stance." Brown highlighted that joint-venture tourism arrangements are not arbitrary but are deeply rooted in the Nature Conservation Amendment Act of 1996. This legislation specifically created communal conservancies and conferred upon rural communities the rights to derive benefits from wildlife-based tourism.
By scrutinizing these agreements, which Brown argues are not anti-competitive, the NaCC is perceived as attempting to deny rural communities their hard-won rights to utilize wildlife for their economic benefit, a right freehold farmers also enjoy.
In response to the criticism, the NaCC firmly rejected any notion that certain sectors are beyond its investigative scope. The commission reiterated its focus on conduct that appears to potentially stifle competition and asserted that it exercises its mandate impartially, irrespective of the industry's structure, conduct, or performance. Furthermore, the NaCC pointed out that the law provides a mechanism for industries to apply for exemptions if they believe specific arrangements should not be subject to competition rules. The commission noted that "None of the players in the tourism industry have ever sought an exemption, therefore, their conduct remains open to scrutiny by the commission."
Acting NWR managing director Epson Kasuto stated he was unaware of NCE's specific request to investigate NWR and therefore could not comment directly on it. However, he clarified that NWR operates under the Namibia Wildlife Resorts Establishment Act, which mandates it to manage hospitality facilities within Namibia's national parks. Kasuto affirmed that NWR's operations are conducted transparently and in compliance with the Public Enterprises Governance Act, maintaining that their practices are focused on fulfilling their mandate to the Namibian people and do not constitute anti-competitive behavior. He also expressed NWR's full cooperation if approached by the NaCC. Ultimate Safaris managing director Tristan Cowley indicated he would comment after consulting other stakeholders.
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