NAMIBIA POLITICS: Geingob to Make it Mandatory for White-Owned Businesses to Sell 25 Percent Stake to Blacks

Politicoscope
By Politicoscope April 14, 2017 10:00
MOST POPULAR YOU MAY LIKE

POLITICS HOME: Current Political Article


A draft bill on the Namibia Economic Empowerment Framework (NEEF) was expected to be tabled before his cabinet soon, Geingob said in a speech on Wednesday.

Continue below with the full current political topic.

NAMIBIA POLITICS: Geingob to Make it Mandatory for White-Owned Businesses to Sell 25 Percent Stake to Blacks

President Hage Geingob has said Namibia will make it mandatory for white-owned businesses to sell a 25 percent stake to blacks, calling the country one of the most unequal in the world.

A draft bill on the Namibia Economic Empowerment Framework (NEEF) was expected to be tabled before his cabinet soon, Geingob said in a speech on Wednesday.

Whites make up only about 6 percent of Namibia’s population of 2.4 million, but overwhelmingly dominate business ownership.

Geingob said Namibia had not seen significant transformation in the 27 years of independence from apartheid South African rule.

“The majority of Namibians remain structurally excluded from meaningful participation in the economy and as we established earlier, inclusivity ensures harmony and exclusivity brings discord,” Geingob told the country’s lawmakers.

“We require the support of all Namibians to fix the obvious and dangerous flaws in our social structure.”

Last year, rating agency Fitch cited the empowerment plan as one of the reasons it had downgraded Namibia’s economic outlook from stable to negative, saying the policy would scare away investors who might not be willing to cede stakes in their companies.

The Construction Industries Federation (CIF), the Namibia Chamber of Commerce and Industry and the Namibian Employers Federation have all expressed concern about the empowerment plan.

“Any empowerment initiatives should not lead to distinctions based on race, as it would negatively impact race relations,” The CIF, which has a membership of over 470 companies, has said.

“Instead, poor Namibians, regardless of racial origins, should benefit through increased focus and monitoring of already existing empowerment efforts.”

The government of neighbouring South Africa has a regulation that at least 26 percent of the ownership of mining companies be in black hands. Companies say they should be considered to have met the rule even after black owners have sold their shares, which has become a bone of contention.

In Zimbabwe, the government is considering amending black empowerment laws that aims to transfer majority shares from foreign-owned firms to black Zimbabweans after it was blamed for deterring investment.

– Reuters



Up Next on Politicoscope

Share this Article: "NAMIBIA POLITICS: Geingob to Make it Mandatory for White-Owned Businesses to Sell 25 Percent Stake to Blacks"

Readers Who Read this Article Also Read

Since You’re Here, We Would Like to ask You for Help
There are more readers worldwide reading the Politicoscope daily news content than ever before. Unlike many other news media organisations that charge their readers subscription fees for the same daily news content and features we offer you for free, we do not charge all our readers to pay any fee. We depend on online advertising to generate the revenues to fund all these great news content and exclusive features provided to you for free. Currently, advertising revenues are quickly falling which is affecting our ability to offer you free online news content.
If everyone who reads our news content, likes it and helps to support it, we can have future guarantee to offer you with the best daily news content and other amazing features, all for free.
"I visit Politicoscope everyday to read my daily news in world politics. I'm glad it's all for free. On my part, I'm happy to donate monthly so as to continue enjoying these free content because it's actually a small amount from me compared to paid subscriptions by other news organisations. I want to help Politicoscope grow more so that I and other readers can continue to have access to free and exclusive daily online news." - Denise H., from LA, USA.
Help keep Politicoscope alive and grow stronger for you.

Donate Online Today


Politicoscope
By Politicoscope April 14, 2017 10:00

Readers Who Read this Article Also Read

Since You’re Here, We Would Like to ask You for Help
There are more readers worldwide reading the Politicoscope daily news content than ever before. Unlike many other news media organisations that charge their readers subscription fees for the same daily news content and features we offer you for free, we do not charge all our readers to pay any fee. We depend on online advertising to generate the revenues to fund all these great news content and exclusive features provided to you for free. Currently, advertising revenues are quickly falling which is affecting our ability to offer you free online news content.
If everyone who reads our news content, likes it and helps to support it, we can have future guarantee to offer you with the best daily news content and other amazing features, all for free.
"I visit Politicoscope everyday to read my daily news in world politics. I'm glad it's all for free. On my part, I'm happy to donate monthly so as to continue enjoying these free content because it's actually a small amount from me compared to paid subscriptions by other news organisations. I want to help Politicoscope grow more so that I and other readers can continue to have access to free and exclusive daily online news." - Denise H., from LA, USA.
Help keep Politicoscope alive and grow stronger for you.

Donate Online

$
Personal Info

Donation Total: $10.00



What's on Your Mind?