Industrialisation and trade minister Lucia Iipumbu says bureaucratic red tape, outdated business laws and corruption make it difficult to register businesses in Namibia.
Iipumbu criticised the number of days it takes to register a business, a process which usually takes between seven to 14 days. She says this is due to the unfavourable regulatory framework for doing business, archaic business law concepts and processes, corruption and its related vices.
“Namibia has generally not performed well on the ease of doing business ranking due to a number of challenges, of which one was the number of days it takes to register a business,” Iipumbu said.
Iipumbu, who was speaking yesterday at the consultation workshop on corporate law reform, said reducing the number of days is possible in the near future, but only when all the hindrances are resolved.
Countries such as South Africa, Botswana and Rwanda have managed to reduce the business registration process to less than 24 hours.
“With the amendment of the laws, it would also consider simplifying the process of business registration, including making the law flexible for electronic filing of applications and other related documents required to be lodged with the registrar,” she said.
Meanwhile, the country has seen a 7,3% drop in new business registrations in 2022. A total of 12 666 new companies were registered with Bipa between January and December 2022. In 2021, the country recorded a total of 13 594 registrations.
Low business appetite is among the reasons for the decrease in business registrations.
The Business and Intellectual Property Authority (Bipa) is hosting an international roundtable consultative forum with local and international stakeholders to come up with reforms that will address the country’s outdated corporate governance laws. The forum started yesterday and ends on Saturday in Windhoek.
Bipa chief executive Vivienne Katjiuongua said Namibia continues to perform far below average on international indices, due to challenges with ease of doing business in the country.
“The amended laws will aim to encourage investment and innovation through an effective and predictable regulatory business environment to attract and solidify the government efforts towards business development in Namibia,” Katjiuongua said.
The discussions are expected to lead to the development of the corporate laws bill and regulations, which will replace the current Companies Act, of 2004 and the Close Corporations Act, of 1988.
The current Companies Act mirrors the 1973 Companies Act of South Africa. The act has been amended since.
“It was inevitable for Namibia to not only review these laws but introduce a total reform of how business is conducted in Namibia, as it has a direct correlation to economic growth and development, as well as foreign and domestic investment in key sectors,” Katjiuongua said.
Tshepo Mongalo, a South African professor of law has been appointed as the lead consultant for the reform project. He will be assisted by expert consultants from the United States and the UK.
The experts specialise in mergers and acquisitions, securities and corporate transactions, capital markets, private equity and corporate law, among others.
