business law quarterly - pwc quarterley...business law quarterly namibia newsletter changes in...

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This newsletter is available on www.pwc.com/na/en/ publications/business- law-quarterly.jhtml In this issue: 1 Changes to Competition Act thresholds 2 Changes to basic conditions of employ- ment—Construction and Fuel Industries 3 A. New Public Procure- ment Act promulgated— The change in bidding B. Amendments to the Local Authorities Act— how will it impact you? A quarterly newsletter published by PwC Namibia providing informed commentary on current developments in the Namib- ian business arena and related fields. To subscribe to this newsletter visit http://www.pwc.com/na/en/ about-us/subscriptions Business Law Quarterly Namibia Newsletter CHANGES IN NAMIBIAN LEGISLATION During December 2015, various changes were made to existing legisla- tion and in addition, some new pieces of legislation were officially promulgated. 1. The Competition Act, Act 2 of 2003 The aim of the Competition Act is to safeguard and promote competition in the Namibian market. The following amendments to the Act are specifically applicable to transactions pertaining to mergers of companies or businesses. A merger is de- fined in terms of the Act as follows: “A merger occurs when one or more undertakings directly or indirectly acquire or establish direct or indirect control over the whole or part of the business of another undertaking.” In terms of Government Notice No. 307, the Minister of Industrialisation, Trade and SME Development, has declared that, in terms of the Competition Act, there is an increase in the thresholds for mergers to be approved by the Competition Commission to N$30m and N$15m (based on the value of assets and turnovers of the entities, and depending on the criteria as set out in the notice). [email protected] Business Alert: Proposed New Empowerment Legislation The National Equitable Economic Empowerment (NEEE) Draft Bill, 2015 is current- ly available for review on the website of the Office of the Prime Minister (http://www.opm.gov.na/web/opm/neee-bill) The purpose of this Bill, amongst others, is for the implementation, supervision, ad- ministration, review and evaluation of the National Equitable Economic Empower- ment Framework. On that website, the public is invited to submit their queries, comments and inputs on the NEEE Draft Bill before 25 February 2016. Queries should be made in written form to Ms Mutindi Lydia Mulwa of the Law Re- form Directorate (e-mail: [email protected])

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Page 1: Business Law Quarterly - PwC Quarterley...Business Law Quarterly Namibia Newsletter CHANGES IN NAMIBIAN LEGISLATION During December 2015, various changes were made to existing legisla-tion

This newsletter is available on www.pwc.com/na/en/publications/business-law-quarterly.jhtml

In this issue:

1 Changes to Competition Act thresholds

2 Changes to basic conditions of employ-ment—Construction and Fuel Industries

3 A. New Public Procure-ment Act promulgated—The change in bidding B. Amendments to the Local Authorities Act—how will it impact you?

A quarterly newsletter published by PwC Namibia providing informed commentary on current developments in the Namib-ian business arena and related fields.

To subscribe to this newsletter visit http://www.pwc.com/na/en/about-us/subscriptions

Business Law Quarterly Namibia Newsletter

CHANGES IN NAMIBIAN LEGISLATION During December 2015, various changes were made to existing legisla-tion and in addition, some new pieces of legislation were officially promulgated.

1. The Competition Act, Act 2 of 2003 The aim of the Competition Act is to safeguard and promote competition in the Namibian market. The following amendments to the Act are specifically applicable to transactions pertaining to mergers of companies or businesses. A merger is de-fined in terms of the Act as follows:

“A merger occurs when one or more undertakings directly or indirectly acquire or establish direct or indirect control over the whole or part of the business of another undertaking.” In terms of Government Notice No. 307, the Minister of Industrialisation, Trade and SME Development, has declared that, in terms of the Competition Act, there is an increase in the thresholds for mergers to be approved by the Competition Commission to N$30m and N$15m (based on the value of assets and turnovers of the entities, and depending on the criteria as set out in the notice).

[email protected]

Business Alert: Proposed New Empowerment Legislation The National Equitable Economic Empowerment (NEEE) Draft Bill, 2015 is current-ly available for review on the website of the Office of the Prime Minister (http://www.opm.gov.na/web/opm/neee-bill) The purpose of this Bill, amongst others, is for the implementation, supervision, ad-ministration, review and evaluation of the National Equitable Economic Empower-ment Framework. On that website, the public is invited to submit their queries, comments and inputs on the NEEE Draft Bill before 25 February 2016. Queries should be made in written form to Ms Mutindi Lydia Mulwa of the Law Re-form Directorate (e-mail: [email protected])

Page 2: Business Law Quarterly - PwC Quarterley...Business Law Quarterly Namibia Newsletter CHANGES IN NAMIBIAN LEGISLATION During December 2015, various changes were made to existing legisla-tion

2. Changes to basic conditions of employment—Construction and Fuel industries

Construction Industry A collective agreement was entered into between the Metal Allied Workers Union and the Construction Indus-tries Federation. Normally a collective agreement is a written agreement concerning the terms and conditions of employment or any other matter of mutual interest. In terms of Government Notice No. 319, the Minister of Labour, Industrial Relations and Employment Creation declared that the provisions of the collective agreement dated 24 July 2015, as set out in the Schedule, is extended to all employers and employees in the Construction Industry. All employees in the construction industry will now be subject to the prescribed rate of basic wages.

Fuel Industry

In the fuel industry, the publishing of Government Notice No. 309 the Minister of Labour, Industrial Relations

and Employment Creation requested and invited objections to the extension of the collective agreement for min-

imum wages for the fuel industry. The closing date for objections was 28 January 2016. If the Minister accepts

the collective agreement, it will prescribe minimum wages for employees working in the fuel industry.

[email protected]

Page 3: Business Law Quarterly - PwC Quarterley...Business Law Quarterly Namibia Newsletter CHANGES IN NAMIBIAN LEGISLATION During December 2015, various changes were made to existing legisla-tion

For assistance or advice please contact one of our specialists.

© 2016 PricewaterhouseCoopers (“PwC”), the Namibian Firm. All rights reserved. In this document, “PwC” refers to Pricewater-houseCoopers Namibia, which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity and does not act as an agent of PwCIL.

Windhoek 344 Independence Ave Telephone Number: +264 (61) 284 1000

Walvis Bay 2nd Floor, Nedbank Building, Sam Nujoma Ave Telephone Number: +264 (64) 217 700

Stefan Hugo [email protected] Telephone Number: +264 (61) 284 1102 Ansie Rossouw (Walvis Bay) [email protected] Telephone Number: +264 (64) 217 720 Estelle Walters [email protected] Telephone Number: +264 (61) 284 1208

The Public Procurement Act (previously referred to as the Public Procurement Bill) has been promulgated by Parliament. The Act was published in the Government Gazette under Government Notice No. 320 on 18 December 2015.

The Act is not yet effective, and will become effective on a date that the Minister announces in the Government Gazette.

The Act will have an impact on the procurement of goods, works and services amongst others. It also prescribes the bidding

and procurement process to be followed. Businesses that supply goods or services to the Namibian Government are encour-

aged to review the bill and to start arranging their affairs accordingly.

The Bill was introduced by the Minister of Urban and Rural Development. In terms of the proposed amendments, the Act will indicate certain restricted areas where property can only be sold to Namibi-ans in specific income groups and also that certain administrative arrangements be implemented which will require Ministerial approvals for property sales.

The National Council of Namibia conducted public consultations on the Bill and rejected and referred the Bill back to the National Assembly with recommendations.

The Bill will therefore again be discussed in the National Assembly, who has the power to refer the Bill

back to the Ministry, make amendments or pass the Bill without changes.

[email protected]

3 A. New Public Procurement Act Promulgated—The change in bidding

3 B. Amendments to the Local Authorities Act—how will it impact you?