The 25% shares requirement in NEEEF is no more-Geingob...as land conference gets slated for the first week of October 2018
April 11, 2018, 5:44pm
President Hage Geingob has finally disclosed in his State of the Nation Address (SONA) that the 25% shares requirement for previously disadvantaged Namibians in the New Equitable Economic Empowerment Framework has been removed.
The clause for companies owned by those who benefited from the colonial past to cede 25% of their shares to poor Namibians had been a long subject of debate and government seem to have buckled under pressure.
“Let me use this opportunity to put the equity pillar of NEEEF into perspective. The 25 percent equity stake will not translate into broad-based empowerment and is done away with.”
“Professor Roman Grynberg recently made a valid point, most Namibians, 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,” said the president.
He however indicated that inclusive broad-based empowerment will have to be realised within the light of employee share schemes.
“I encourage such an approach,” he said while also expressing his support by workers’ unions to introduce a national minimum wage.