Empowerment Framework drives interest to list
The New Equitable Economic Empowerment Framework may just be the right stimulus that will trigger local companies to list on the Namibia Stock Exchange as privately owned companies seek various ways to comply with the proposed bill, in anticipation of its eventual approval.
While there was no definitive indication from the Namibia Stock Exchange, the Economist sought to ask its Chief Executive Officer, Tiaan Bazuin whether there was in fact interest from the private sector. Bazuin confirmed that some interest was indeed expressed. “Obviously companies are looking at the exchange as a platform to reach a broad base of New Equitable Economic Empowerment Framework compliant shareholders. We also believe we can offer solutions to that end. However the Bill is still under discussion and consultation so we can only create these solutions once the rules of the game are clear.”
The Economist also quizzed Law and Reform Development Commission chairperson Yvonne Dausab whether a company seeking listing on the local bourse would remove any justification for the imposition of the bill, whether listed companies are subject to comply with future NEEEF dynamics and what would happen in the event of a company already listed.
She responded, stating, “These aspects are currently under discussion so it is difficult to commit the current text of the bill because of the wide ranging observations and proposals we received including on these aspects during the ongoing consultations.”
Pupkewitz Group Chief Executive Officer Dougie Truter did also not shy away from the contentious subject saying that his group is not considering a listing as a back door to avoid participation in the equitable framework. He said, “we are under no pressure to list and we are very much part of the consultative process to assist in putting the 3rd New Equitable Economic Empowerment bill together with the bodies that we belong to like the Namibia Chamber of Commerce and Industry.”