NEEEF 25% compulsory equity stake off the cards – President
H.E President Hage Geingob said that the 25% equity stake stipulated in the National Equitable Economic Empowerment Policy Framework (NEEEF) will not translate into broad-based empowerment and will be done away with.
Geingob said that the framework is under conversion into a legislative framework called (NEEEB) and will be tabled in Parliament before the end of this year.
In his statement the President cited a recent point made by Economist, specialist in international trade and commodities, Prof. Roman Grynberg and said most people, 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,” Geingob explained.
According to the President, the role of his 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, adding that those who want to participate in public procurement will have to do more to be NEEEF compliant.
“We must strive towards inclusive broad-based empowerment focusing on the plight of farm workers, domestic workers, women, the youth and all disenfranchised Namibians. Employee share schemes are one of the most effective forms of broad-based empowerment. I encourage such an approach,” he stressed.
Meanwhile, outcomes from the NEEEF consultations were presented to Cabinet in February, for deliberation and the Office of the Prime Minister will provide feedback to stakeholders, on the Cabinet decision in May.
