Concerns raised over local black ownership ruling

One of the challenges

facing business in

Namibia is how to

accommodate plans

by the government to introduce

legislation

similar to

South Africa’s

Broad-

Based Black

Economic

Empowerment.

The NEEEF

(New Equitable

Economic

Empowerment

Framework) document approved

by the cabinet in November

2015 states that NEEEF shall be

obligatory to all enterprises.

“Government shall use all the

regulatory, licensing and market

mechanisms at its disposal to

ensure compliance.

“These will include, but not

be limited to, government

procurement of goods and services,

work permits, access rights to

natural resources like fishing,

mining, hunting

and tourism

concessions, as well

as issue of business

licences, trading,

telecommunications

and financial

services.

“Government

expects all

businesses to

proactively embrace the national

transformation framework and

participate wholeheartedly in

the transformation of asset

ownership and empowerment.”

For new enterprises, the

requirement will be that the

company has 25% previously

disadvantaged person

shareholding before it is allowed

to commence business.

Existing businesses will be

required to meet targets similar

to those in South Africa’s BBBEE

legislation.

Financing of the stakes in

the business is expected to

come from private financial

institutions and venture capital

funds established by the

government.

Business has reacted through

the Namibia Chamber of

Commerce and Industry (NCCI),

which has called on parliament

not to approve the NEEEF

legislation.

The Bill is due to go before

the Namibian legislature in

September this year.

INSERT 

Existing businesses will be

required to meet targets

similar to those in South

Africa’s BBBEE legislation.