Namibia probe targets tourism joint ventures

The Namibia Competition Commission (NaCC) has launched a formal investigation into Ultimate Safaris and three conservancies in northwestern Namibia over exclusive tourism agreements, raising questions about the future of the country’s long-standing joint venture model. 

The probe, which relates to the Khorixas area of the Kunene region, has triggered concern fromHospitality Association of Namibia (HAN), which warns the inquiry could destabilise a system widely seen as central to community-based tourism. 

According to a report by TheNamibian, the investigation follows a complaint that joint venture agreements between tourism company Ultimate Safaris and Doro !Nawas, Sorris Sorris and Twyfelfonyein conservancies may restrict competition by granting exclusive rights over a large area. 

The matter has been unfolding over the past few years. The NaCC issued a cautionary notice to the parties in December 2024, instructing them to cease the conduct within 30 days. After what it described as a prolonged period of engagement, the NaCC has now escalated the matter to a formal investigation.

The dispute is also linked to a broader land-use conflict. A mining rights holder has sought to reopen the Goantagab tin mine within the conservancy area, arguing the project could create more than 150 jobs. Proponents of the tourism model, however, have warned that mining activity could threaten wildlife, including black rhino populations that underpin the region’s tourism offering.

Industry reaction

Gitta Paetzold, CEO of HAN, questioned the basis of the inquiry, asking the commission to provide clarity on the directives that have led to the decision. 

She said in a letter to the NaCC that the inquiry threatens to disrupt Namibia’s community tourism model, which she described as “the lifeline of many communities in more remote areas”, as indicated by the Namibian Association for Community-based Tourism Support Organisations.

“Namibia is already suffering from declining tourism numbers, as per the recent accommodation statistics of the first quarter of 2026, and any further disruptions to the country’s tourism model will intensify the downward spiral to the detriment of tourism investors, communities and the people of Namibia that depend on this industry for a living,” Paetzold added.

Established through amendments to Namibia’s Nature Conservation Act in 1996, the model returned rights over natural resource use to communities via conservancies, enabling the development of joint venture partnerships that underpin the communal conservancy tourism model. 

According to Paetzold, the model proven to be most suitable and successful for Namibia is the build, operate and transfer (BOT) approach. The BOT model involves private investors financing and operating lodges for 15-30 years before transferring assets to the conservancy. In return, the conservancy grants land access and brings in local support while typically receiving royalty payments (5-10% of net income), jobs and training in return.

Exclusivity clauses help secure long-term private investment in expensive tourism infrastructure and generate profit for investor and community partners while protecting sensitive environments by limiting the number of operators and lodges in a specific area. 

Paetzold said: “Similar concessions exist in national parks across Namibia – these seemingly have not been question by the NaCC – which leads us to assume the single investigation is a form of political persecution motivated by ulterior motives.”