Rethink NEEEB, employers urge

The Namibian Employers' Federation (NEF), the largest employers' organisation in the country, yesterday urged government to further consult with the private sector on the latest version of its empowerment legislation.On Sunday, Cirrus Securities warned that the lack of improvement from the previous version of the New Equitable Economic Empowerment Bill (NEEEB), “coupled with the claim that no further consultation will take place, has seen a number of businesses gear up to move capital into other jurisdictions, and to focus investment and growth efforts outside of the country”. The latest version of NEEEB, currently before cabinet, “unfortunately still contains areas of questionable and undefined concepts which could lead to abuse and misuse”, NEF said in its statement yesterday. “The economy, as we all know, is currently in a desperate situation,” NEF said.Any measure should therefore be carefully evaluated and discussed at level of society to ensure that there are no unforeseen hidden negative consequences that could lead to an adverse escalation of the current situation, the federation added.'Unchecked power'NEF said it is concerned that there might be “too much unchecked power” passed on to the minister responsible for implementation of the act and also in the hands of the commissioner and his staff.“Uncertainty causes a major problem and should be avoided as far as is possible,” NEF said.“The NEF advocates and proposes that measures be put in place to ensure that the risk of corruption, nepotism, and empowering and enriching those who are no longer disadvantaged is totally eliminated and mitigated against,” the statement states.NEF said its Enabling Environment for Sustainable Enterprises (EESE) study carried out in 2018 detailed many actions that can be initiated, and which would all assist in making it easier to create and sustain businesses, especially for the SMEs and others needing an income.The study was shared with all relevant ministries, NEF said.'Growth drag'Releasing its updated economic outlook on Sunday, Cirrus Securities said “far from removing uncertainty, the current version of the bill adds additional uncertainty and is no less draconian than its predecessor”.The latest version of NEEEB is “equally unlikely to have any positive benefits on the economy and the objects of reduced inequality, improved growth and job creation”, Cirrus said.“This legislation can be expected to remain a material drag on growth going forward,” Cirrus continued. “Moreover, and more importantly, NEEEB can be expected to continue to put pressure on the currency peg, with individuals and corporates unlikely to invest surplus capital in Namibia until clarity is seen in regulation (at best), while FDI flows are likely to remain non-existent to negative for the same reason,” Cirrus said.Jo-Maré Duddy –

Rethink NEEEB, employers urge

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Republikein 2025-06-18

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Rethink NEEEB, employers urge

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