A clause in the Namibian economic empowerment framework that would have seen all businesses being a minimum 25% black-owned through the compulsory sale of shares to black Namibians has been scrapped.
This was announced by president Hage Geingob in his April State of the Nation address.
“The 25% equity stake will not translate into broad-based empowerment and is done away with.
“Most Namibians, especially the previously disadvantaged, do not have enough resources to invest in empowerment transactions, nor are they able to obtain access to funding to participate in such transactions.
“Some sectors such as mining are particularly capital intensive and come with huge risk during the exploration phase,” he said.
“The Marxian principle of ‘each according to his/her needs and each according to his/her ability’ guides us.
“The role of government is to create a conducive business environment where owners, whether black or white, who can afford risk capital, can participate in equity transactions under NEEEF (Namibia Economic Empowerment Framework)”. As in South Africa, government will be using its spending power to support empowerment.
“Those who want to participate in public procurement will have to do more to be NEEEF compliant,” he said.
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The role of government is to create a conducive business environment where owners, whether black or white, can participate. – Hage Geingob
