BEE should not just be for elite, says new report

THE envisaged black economic empowerment (BEE) policy currently being drafted for Government should not just be a swap from white to black elites, a new report cautions.

“The challenge is how to ensure that BEE does not just benefit a new black elite or consolidate a black middle class, instead BEE must de-racialise the economy and lead to redress and redistribution on a large scale,” says labour expert Herbert Jauch, one of the co-authors of ‘2 BEE or not 2 BEE? – An eclectic review of Namibia’s BEE landscape.’ The report was published last week by the Institute for Public Policy Research (IPPR). “Similarly, women may raise the question of gender inequalities that seem to be replicated and further entrenched when BEE deals are struck,” Jauch added.It should not be ignored that economic empowerment should also include women, he said.In the absence of the BEE policy, which is scheduled to be finalised next year, some companies and a few economic sectors have embarked on their own empowerment strategies, the report noted.The financial sector was supposed to have completed its charter at the end of last year, but it is still finalising it.The fishing sector was nudged by the line ministry several years ago to form partnerships with black players in the sector under the banner of “Namibianisation”.Another achievement by the Ministry was that the majority of employees in the fishing industry were now Namibians, including in the higher echelons.This was achieved because Minister Abraham Iyambo informed companies that the Ministry would only consider applications for fishing licences from companies that had formed business partnerships with black companies.The chapter on the tourism industry noted that the tourism industry was among the first sectors to map out its own BEE policy, called the Transformational Charter.”This charter is sound, but is lacking in implementation,” the IPPR report stated.”While a lot has been done in empowering formerly disadvantaged Namibians in rural communities to benefit from tourism in the form of conservancies; little has been done to transform the ownership and control of mainstream tourism activities in the country.The sector remains largely a domain of formerly advantaged Namibians,” the report said.Of the 138 members registered with the Tour and Safari Association of Namibia (Tasa), only five per cent, or seven members, could be classified as previously disadvantaged.However, some 60 per cent of people employed in middle-management positions in the tourism industry today are previously disadvantaged Namibians.The IPPR report recommends that current isolated efforts geared towards empowering formerly disadvantaged Namibians be emulated and strengthened by the introduction of a national legislation on black economic empowerment to achieve true BEE.”Similarly, women may raise the question of gender inequalities that seem to be replicated and further entrenched when BEE deals are struck,” Jauch added.It should not be ignored that economic empowerment should also include women, he said.In the absence of the BEE policy, which is scheduled to be finalised next year, some companies and a few economic sectors have embarked on their own empowerment strategies, the report noted.The financial sector was supposed to have completed its charter at the end of last year, but it is still finalising it.The fishing sector was nudged by the line ministry several years ago to form partnerships with black players in the sector under the banner of “Namibianisation”.Another achievement by the Ministry was that the majority of employees in the fishing industry were now Namibians, including in the higher echelons.This was achieved because Minister Abraham Iyambo informed companies that the Ministry would only consider applications for fishing licences from companies that had formed business partnerships with black companies.The chapter on the tourism industry noted that the tourism industry was among the first sectors to map out its own BEE policy, called the Transformational Charter.”This charter is sound, but is lacking in implementation,” the IPPR report stated.”While a lot has been done in empowering formerly disadvantaged Namibians in rural communities to benefit from tourism in the form of conservancies; little has been done to transform the ownership and control of mainstream tourism activities in the country.The sector remains largely a domain of formerly advantaged Namibians,” the report said.Of the 138 members registered with the Tour and Safari Association of Namibia (Tasa), only five per cent, or seven members, could be classified as previously disadvantaged.However, some 60 per cent of people employed in middle-management positions in the tourism industry today are previously disadvantaged Namibians.The IPPR report recommends that current isolated efforts geared towards empowering formerly disadvantaged Namibians be emulated and strengthened by the introduction of a national legislation on black economic empowerment to achieve true BEE.