NaCC tells Sorris Sorris to terminate Ultimate Safaris contract

The Namibian Competition Commission (NaCC) has given the Sorris Sorris Conservancy 30 days to terminate what it calls anti-competitive exclusive contracts with Ultimate Safaris, which span up to 25 years and prevent other companies from doing business in the conservancy.NaCC launched an investigation into alleged anti-competitive practices involving Ultimate Safaris and several conservancies after it received a complaint in September 2024.The commission has given Sorris Sorris 30 days to terminate the agreement and provide written confirmation that the conduct has ceased.In a recent letter to the Sorris Sorris Conservancy, NaCC CEO Vitalis Ndalikokule highlighted that the conservancy must ensure fair and reasonable opportunities for other tourism operators seeking to establish facilities within the area, provided they meet regulatory requirements and contribute to the conservancy’s sustainability."In a nutshell, the conservancy is advised to open the door to other capable operators interested in investing in the area," he wrote. The enquiry follows a complaint lodged on 26 September 2024, alleging that exclusive agreements have been implemented, restricting market access for other tourism operators.According to the commission, preliminary findings suggest that Ultimate Safaris has secured preferential rights to develop tourism facilities across large sections of these conservancies, effectively blocking competitors.NaCC added that the 25-year agreements have sparked serious concerns regarding their impact on competition and the broader sustainability of Namibia’s tourism sector."These agreements create an exclusive arrangement, granting Ultimate Safaris the sole right to establish and operate tourism facilities within designated areas. This effectively locks out competitors. The extended duration of these agreements further exacerbates these concerns,” Ndalikokule argued. "Furthermore, the commission is of the view that this conduct has serious implications for market competition. The agreements contain no justification for why other operators should be barred from participating in these conservancies,” he added. "It is the commission&#039;s position that these agreements, which afford Ultimate Safaris exclusive rights, ultimately foreclose competitors, even when alternative options exist. Despite a wide range of alternatives, these exclusive agreements stifle competition," he noted. Legal actionsAbout five months ago, communities in conservation areas near Khorixas, including a local chief, criticised Ultimate Safaris, accusing it of manipulating conservation efforts under the guise of rhino protection to suppress competing investment interests.This follows Ultimate Safaris filing two court applications to halt the development of a proposed tin mine in the area and to prevent the clearing of a road leading to the site. The company secured interim interdicts in both cases, pending full hearings.Community activists argue that their region has become a playground for wealthy tourists, with little economic benefit reaching locals. They insist that responsible mining would create jobs and alleviate the high levels of poverty plaguing the area.In late August, Ultimate Safaris filed an urgent application against the clearing of the road leading to the mining site owned by Timoteus Mashuna. The court interdicted Mashuna from continuing work on the road, which he claimed already existed and was merely being flattened for easier access by larger vehicles.Local pensioner worried Khorixas pensioner Leonard Hoaeb reached out to Namibian Sun, arguing that Ultimate Safaris was allegedly using rhino conservation as a pretext to protect its business interests while keeping the local population impoverished."Ultimate Safaris is making millions from this area, but we, the community, get nothing. They have 28 employees, while the mine will employ 140 people in its first phase. Why can&#039;t they coexist?" he asked at the time.Speaking to Namibian Sun at the time, Mashuna alleged that Ultimate Safaris’ court actions were an underhanded strategy to monopolise business in the area."To make matters worse, Ultimate Safaris only held a consultative meeting with the community after obtaining a court interdict against me. They went into that meeting asking people to sign affidavits supporting their case, after the fact. They have no respect for the community they operate in,” he remarked.Ultimate Safaris countered this, arguing that Mashuna’s environmental clearance certificates failed to acknowledge the potential rise in poaching due to human activity associated with mining.The company also claimed the report omitted the potential impact of mining operations, such as the use of heavy machinery and blasting, on rhino populations. - nikanor@nmh-hub.com.na

NaCC tells Sorris Sorris to terminate Ultimate Safaris contract

Comments

Namibian Sun 2025-04-04

Please login to leave a comment

NaCC tells Sorris Sorris to terminate Ultimate Safaris contract

Comments

Namibian Sun 2025-04-04

Please login to leave a comment

Login