Geingob relentless on NEEEF

by Toivo Ndjebela

Geingob relentless on NEEEF

Windhoek

President Hage Geingob is not shaken by global rating agencies’ negative hype around the envisaged New Equitable Economic Empowerment Framework (NEEEF), saying government is at a point of no return in ensuring equitable sharing of the country’s wealth by all its citizens.

His stance on this was confirmed on Monday when he addressed the University of  Columbia community in the USA, where he repeated his administration’s commitment to ensuring that the previously advantaged share resources with those at the opposite end of the economic spectrum.



NEEEF has sparked quite a pandemonium in the country, especially within the white business community in which sentiments are being expressed that the Swapo-led government is on a mission to drive them out of business.
NEEEF makes provision that any business set up after the adoption of this framework would be mandatorily required to avail 25 percent of its ownership to partners from previously racially disadvantaged groups.

If implemented as is, black Namibians stand to benefit more from this regime of economic empowerment.
Rating agency Fitch cited NEEEF as one of the reasons it downgraded Namibia’s economic outlook from stable to negative, saying the policy would scare away investors who may not be willing to cede stakes in their companies.

Government hit back at this assertion, saying consultations on NEEEF were still underway and any judgement passed on this policy would be premature at this stage.

Geingob was unapologetic as he engaged an active Columbia University audience, saying NEEEF remains firmly on government’s radar.

“In Namibia we have experienced sustained economic growth but no job creation,” he said.
“This scenario will not help transform the lives of our people. Only if we are able to create jobs can we be able to transform our economies and the lives of our people simultaneously.”

“We therefore cannot continue to entertain situations in which those with wealth are only interested in protecting what they have acquired. One cannot enjoy life while your brother or sister is starving,” he told the audience, which included his wife Monica, advisors and other members of his delegation to the US.

“It is therefore crucial that we pursue shared and sustained economic development, which will allow us to create jobs and maintain peace. I have often said that exclusivity spells conflict, while inclusivity spells peace.”

“I am therefore disappointed when our efforts to tackle inequality are negatively portrayed, such as in the case of the New Equitable Economic Empowerment Framework (NEEEF) which has been criticised by several ratings agencies

and even academics here at Columbia University,” he added.
“In a democracy, consultation should prevail but it seems that in this instance, those with sinister motives have derailed the consultative process.”

“Since I believe in consultation and interaction, I would like to conclude and look forward to engaging you in order to expound more on the issues which I have briefly touched on,” he said.

2 Responses to "Geingob relentless on NEEEF"

  1. Tobias  September 28, 2016 at 6:58 pm

    Foreign investors have stopped bringing capital into Namibia because of all this uncertainty with NEEEF. Last year Walvis Bay’s real estate market was red hot with lots of local people being employed and gaining skills. This year it is grounding to a halt with properties sitting empty and Namibians becoming unemployed. Foreigners are no longer investing in businesses, buildings, and other projects because of the 25% ownership clause. A successful investment should have a return of 5 to 10%, with the current state of NEEEF any foreign investor who is white will lose on their investment. As President Geingob is relentless on NEEEF 2017 will most likely bring foreign divestment from Namibia.

    Reply
  2. Gottfriedt Lion Shikangalah  October 3, 2016 at 9:04 pm

    1. The proposed New Equitable Economic Empowerment Framework (NEEEF) sounds very tangible indeed, and the 25% of ownership to partners from previously racially disadvantaged groups would enormously make a positive difference and ingeniously defy this unwanted inequality within our beloved country/Namibia, Should it be well implemented as per its designed purposes.

    2. The uncontrollable deadly businesses protections through unnecessary cost savings and job-cuts performed by huge corporate companies and private entities has rapidly grown nowadays and it’s highly contributing to unemployment and unwanted inequalities within the land of the braves. The same huge corporate companies and private entities have failed on implementations of needed affirmative action; they rather apply affirmative action on bias, mediocre & unethical African employees for their own easy control/mind control & further use them on selling out of their own fellow African skinned employees/human beings.

    3. The proposed New Equitable Economic Empowerment Framework could be the ultimate solution for African skinned human beings/employees and frankly absorb these unwanted inequalities. I will further say, the practical implementation layout would determine its practical inequality problem solving. Why? Because it’s only thorough impartial implementation that NEEEF can solve its designed purposes.

    4. Therefore, deep & high investigations and thorough feasibility studies must be independently carried out, to avoid common practices in Mama Africa of high conflict of self-interest. That it does not just become a tool for corrupt politicians who would just feed their own children & their fellow politicians for their own gaining, whilst the poor would still be in continuous suffering and strangling.

    5. NB: This type of economic empowerment is not new on African continent; it’s known & noticed before by these with functioning knowledge individuals, it has been introduced in Zambia before and it does not always take a good paths or constructive ways.

    6. I strongly salute and fully support the President Tate Hage Gotfried Geingob on NEEEF under Harambee prosperity; we shall not fear these individual foreign investors who would divest from our beloved country/Namibia. There are a lot of foreign investors who are genuinely interested in uplifting mama Africa and its African skinned human beings.

    That’s just my entitled accurate opinions…1Love always.

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