NCCI Comments on the Draft NEEEF Bill
The Chamber provided comments on the draft NEEEF Bill. The table below summarizes our understanding of the core empowerment pillars and our perceptions of both their costs and benefits. We recommended the exclusion of pillars one and pillar two of the Namibia Equitable Economic Empowerment Framework.| Indicator | Beneficiary | Description | Assumptions | Perceived Costs | Perceived Benefits | Net Cost Benefit |
| Economic Ownership |
Upper Class
Well-connected |
Selling of Equity stakes to FDPs | FDPs raises capital to pay for the stake in the company |
Disruptive and intrusive law
Lost FDI Capital flight Balance of payment pressures as foreigners sell out Over-exposures banks and diversion of funding from pressing challenges of housing and SME financing. |
Improved corporate activity | Negative |
| Management control and employment equity | Upper Class and Middle Class | Racially representation on boards and top management and general employment |
Company follow their normal appointment process to appoint directors and executives
Employees are appointed on merit, companies remove ceilings in career advancement for previously disadvantaged persons |
Requires formal racial classification and promotes racial polarization; blames white racism, brushes over complex causes of inter-racial inequality; erodes social trust and keeps focus on the past
Pushes some citizens in the cold Brain drain divisive than cohesive racial quotas add to inefficiency |
Diversified and expanded network of opportunities. Gained experiences provides formerly disadvantaged wider opportunities
More diversified workforce |
Negative |
| Human Resources and Skills Development | Middle Class | Skills development of racially disadvantaged employees | Requires companies to invest in the training of formerly disadvantaged persons which includes core skills | Increased labor costs | An improved skillset, improved productivity | Positive |
| Entrepreneurial development and marketing | Middle Class | Investing and supporting FDPs /entrepreneurs | Enterprise development becomes an effective tool to create or improve a company’s upstream and downstream partners |
Sharing proprietary information
Need to invest in program, monitoring and control systems |
Reduced Costs
Streamlined operations Improved quality products or reduced defective products More established businesses Significant business partners, suppliers or clients |
Positive |
| Corporate Social Responsibility | Poor, Needy, Community | Investing in the community | Requires a company and its employees to be involved in the community | Increase in cost of doing business and reduced cash-flow to owners | Improved company positioning due to community involvement | Positive |