NCCI Comments on the Draft NEEEF Bill

NCCI Comments on the Draft NEEEF Bill

The Chamber provided comments on the draft NEEEF Bill. The table below summarizes our understanding of the core empowerment pillars and our perceptions of both their costs and benefits. We recommended the exclusion of pillars one and pillar two of the Namibia Equitable Economic Empowerment Framework.

Indicator Beneficiary Description Assumptions Perceived Costs Perceived Benefits Net Cost Benefit
Economic Ownership Upper Class
Well-connected
Selling of Equity stakes to FDPs FDPs raises capital to pay for the stake in the company Disruptive and intrusive law
Lost FDI
Capital flight
Balance of payment pressures as foreigners sell out
Over-exposures banks and diversion of funding from pressing challenges of housing and SME financing.
Improved corporate activity Negative
Management control and employment equity Upper Class and Middle Class Racially representation on boards and top management and general employment Company follow their normal appointment process to appoint directors and executives
Employees are appointed on merit, companies remove ceilings in career advancement for previously disadvantaged persons
Requires formal racial classification and promotes racial polarization; blames white racism, brushes over complex causes of inter-racial inequality; erodes social trust and keeps focus on the past
Pushes some citizens in the cold
Brain drain
divisive than cohesive
racial quotas add to inefficiency
Diversified and expanded network of opportunities. Gained experiences provides formerly disadvantaged wider opportunities
More diversified workforce
Negative
Human Resources and Skills Development Middle Class Skills development of racially disadvantaged employees Requires companies to invest in the training of formerly disadvantaged persons which includes core skills Increased labor costs An improved skillset, improved productivity Positive
Entrepreneurial development and marketing Middle Class Investing and supporting FDPs /entrepreneurs Enterprise development becomes an effective tool to create or improve a company’s upstream and downstream partners Sharing proprietary information
Need to invest in program, monitoring and control systems
Reduced Costs
Streamlined operations
Improved quality products or reduced defective products
More established businesses
Significant business partners, suppliers or clients
Positive
Corporate Social Responsibility Poor, Needy, Community Investing in the community Requires a company and its employees to be involved in the community Increase in cost of doing business and reduced cash-flow to owners Improved company positioning due to community involvement Positive
Read the NCCI Comments on NEEEF here.