WINDHOEK, Feb. 27 (Xinhua) -- Namibian president Hage Geingob said Tuesday that his government was going ahead with its black economic empowerment plan aimed at addressing inequality, despite industry resistance.
Speaking at a Cabinet workshop on the National Equitable Economic Empowerment Framework (NEEEF) in the capital Windhoek, Geingob said government was busy with the final leg of consultations before the draft bill is tabled in Parliament this year. Under NEEEF, Namibia will make it mandatory for white-owned businesses to sell a 25 percent stake to blacks.
"We have to address the underlying structural impediments which make it difficult if not impossible for Namibians to effectively participate in the economy," Geingob said.
He emphasized that although Namibia will draw comparative experiences from other countries such as South Africa, its economic empowerment legislation will be unique.
The government of neighboring South Africa has a regulation that at least 26 percent of the ownership of mining companies be in black hands. Companies say they should be considered to have met the rule even after black owners have sold their shares, which has become a bone of contention.
Last year, rating agency Fitch cited the empowerment plan as one of the reasons it had downgraded Namibia's Long-Term Foreign-Currency Issuer Default Rating to junk, saying the policy would scare away potential investors who might not be willing to cede stakes in their companies.
The Construction Industries Federation (CIF), the Namibia Chamber of Commerce and Industry and the Namibian Employers Federation have all expressed concern about the empowerment plan.
Geingob encouraged businesses to already start the process of implementing NEEEF before the bill is passed.
Whites make up only about 6 percent of Namibia's population of 2.4 million, but overwhelmingly dominate business ownership.
