Extension granted in Ultimate Safaris anti-competition probe
The Namibian Competition Commission (NaCC) has granted an extension to Ultimate Safaris and three other conservancies to give them time to collaborate with the tourism ministry on the investigation into alleged anti-competitive conduct.
NaCC is investigating allegations that Ultimate Safaris has engaged in anti-competitive practices through exclusive agreements with conservancies, preventing other businesses from operating in those areas.
Ultimate Safaris, a Namibian tourism company, has joint management agreements with several conservancies, particularly in the Kunene region, to manage the area as a combined conservation and tourism zone. These agreements grant Ultimate Safaris exclusive rights to operate tourism within the joint management area (JMA) managed by the conservancies, with the company paying dividends to the conservancies.
NaCC spokesperson Dina //Gowases said the commission and the tourism ministry agreed to grant Ultimate Safaris, the Doro !Nawas, Twyfelfontein and Sorris Sorris conservancies a 90-day extension period.
//Gowases said the commission and the ministry will engage in further discussions on a possible way forward to find a mutually beneficial solution.
She said the decision comes after the commission advised the conservancies in January this year to consider terminating their exclusive agreements and to confirm in writing that they have ceased with the exclusive conduct within 30 days of that notice.
She said the commission further cautioned that should the parties persist in the said conduct, the commission reserves its rights to exercise its powers as provided for in Section 33(1) of the Competition Act.
The commission initiated an investigation against the three conservancies following a complaint submitted in September 2024.
//Gowases said the commission met with the environment and tourism ministry on 14 March this year to discuss the matter.
“Recognising the important role of the ministry in ensuring environmental sustainability and wildlife protection, especially for endangered species, the commission welcomed the opportunity to engage and collectively find a mutually beneficial way forward in dealing with the matter.”
Further consultations
Following initial discussions, it was agreed that the ministry would communicate to the concerned conservancies and Ultimate Safaris that the 90-day extension has been granted, pending further consultations between the commission and the ministry.
//Gowases said the ministry is expected to submit a report to the commission detailing the history and regulatory framework of communal conservancies in Namibia.
“Subsequent to the submission, the commission and the ministry will hold consultations at a technical level to discuss and craft the best possible way forward based on available options in respect of the Competition Act," she explained.
The commission said it looks forward to engaging with the ministry to collectively craft a path that upholds the protection and sustainability of Namibia’s vital natural resources while also enhancing competition within the relevant sector.
The commission’s views on the nature of the agreements remain as expressed to the concerned parties in that those agreements stifle competition, //Gowases added.
“Should there be no consensus on a resolution of this matter, the Commission reserves its rights to scrutinise the conduct further, following the expiry of the 90 days.”
NaCC is investigating allegations that Ultimate Safaris has engaged in anti-competitive practices through exclusive agreements with conservancies, preventing other businesses from operating in those areas.
Ultimate Safaris, a Namibian tourism company, has joint management agreements with several conservancies, particularly in the Kunene region, to manage the area as a combined conservation and tourism zone. These agreements grant Ultimate Safaris exclusive rights to operate tourism within the joint management area (JMA) managed by the conservancies, with the company paying dividends to the conservancies.
NaCC spokesperson Dina //Gowases said the commission and the tourism ministry agreed to grant Ultimate Safaris, the Doro !Nawas, Twyfelfontein and Sorris Sorris conservancies a 90-day extension period.
//Gowases said the commission and the ministry will engage in further discussions on a possible way forward to find a mutually beneficial solution.
She said the decision comes after the commission advised the conservancies in January this year to consider terminating their exclusive agreements and to confirm in writing that they have ceased with the exclusive conduct within 30 days of that notice.
She said the commission further cautioned that should the parties persist in the said conduct, the commission reserves its rights to exercise its powers as provided for in Section 33(1) of the Competition Act.
The commission initiated an investigation against the three conservancies following a complaint submitted in September 2024.
//Gowases said the commission met with the environment and tourism ministry on 14 March this year to discuss the matter.
“Recognising the important role of the ministry in ensuring environmental sustainability and wildlife protection, especially for endangered species, the commission welcomed the opportunity to engage and collectively find a mutually beneficial way forward in dealing with the matter.”
Further consultations
Following initial discussions, it was agreed that the ministry would communicate to the concerned conservancies and Ultimate Safaris that the 90-day extension has been granted, pending further consultations between the commission and the ministry.
//Gowases said the ministry is expected to submit a report to the commission detailing the history and regulatory framework of communal conservancies in Namibia.
“Subsequent to the submission, the commission and the ministry will hold consultations at a technical level to discuss and craft the best possible way forward based on available options in respect of the Competition Act," she explained.
The commission said it looks forward to engaging with the ministry to collectively craft a path that upholds the protection and sustainability of Namibia’s vital natural resources while also enhancing competition within the relevant sector.
The commission’s views on the nature of the agreements remain as expressed to the concerned parties in that those agreements stifle competition, //Gowases added.
“Should there be no consensus on a resolution of this matter, the Commission reserves its rights to scrutinise the conduct further, following the expiry of the 90 days.”
Comments
Namibian Sun
No comments have been left on this article