Whites must fight inequalityGeingob annoyed by brouhaha about NEEEF Opening an investment conference in Windhoek yesterday, the president once again slammed white business people for wanting to defend their own interests. President Hage Geingob has castigated white businesses to stop being protective of their economic interests and rather embrace empowerment policies meant to tackle the high levels of inequality in society.Geingob said there was no need to fear the New Equitable Economic Empowerment Framework (NEEEF), which aims to address the economic imbalances of the past.
The president added that NEEEF needed to be implemented in the face of growing social inequality. He noted that there was widespread criticism but gave no indication that he would put the empowerment framework aside.
“To have the New Equitable Economic Empowerment Framework is good. Are we going to sit and watch inequality grow?” he asked. “Some people just hate this word (NEEEF). I do not know why white people are feeling guilty and protective. Let''s share what we have. If all of us can do that, it can go a long way. That is all I am saying.”
The president made the remarks yesterday while addressing delegates at the start of a two-day Invest in Namibia International Conference in Windhoek.
Making reference to his recent visit to the United States, Geingob quipped: “Even in countries like the United States, the government understood that continued inequality carries negative consequences in terms of national unity and stability.
Prior to my trip to the United States in September this year, a journalist posed a question as to how I would explain NEEEF to the Americans.
“I replied by saying that it was due to social inequalities that affirmative action policies were put in place in the United States. Namibia, which remains one of the countries with the highest income gaps in the world, therefore has every right to pursue broad-based economic empowerment. We have therefore put in place policies that are aimed at redressing these social imbalances.”
There has been growing discontent over NEEEF in recent months especially within the white business community, who expressed disappointment that the government is on a mission to drive them out of business.
The NEEF Bill would supersede all other state transformation and empowerment policies and provide a framework which all private-sector initiatives must conform to.
The bill proposes a mandatory minimum requirement that white-owned private companies sell “at least” 25%, or a percentage determined by a minister, to previously disadvantaged persons (PDPs). Another mandatory requirement is that that 50% of such companies'' management must consist of PDPs and that the equivalent of 0.5% of a company''s gross wages must be spent on training employees.
In a recent interview with Namibian Sun, the permanent secretary in the prime minister''s office, Nangula Mbako, said the final report on the NEEEF Bill would be submitted to the premier soon.
Ready for business
Geingob yesterday welcomed international business delegates to the investment conference, assuring them that the country was open to doing business with them.
He said concrete steps were being taken to work closely with the private sector through public-private-partnerships.
“To entice private investment, we have decided to open our economy by actively embracing public-private partnerships that meet the expectation of both parties. After all, one of the key tenets of the Harambee Prosperity Plan is partnership. It must, however, be partnerships that are mutually beneficial and grounded in the spirit of mutual trust and transparency.”
On meetings at State House he told the delegates: “I would like to once again reiterate that the Presidency welcomes courtesy visits and engagements with business people, but the tendency to seek appointments for the specific discussion of business plans and tenders is not welcome. My advice is that those requiring guidance seek the counsel of line ministers or technocrats. This is to encourage the process of multi-layered decision-making, which encourages transparency and discourages rent-seeking behaviour.”
OGONE TLHAGE