Businesses fine with BEE, but say it must be properly rooted

THE private sector is prepared to embrace black economic empowerment (BEE), but says it should be achieved according to economic realities and not be forced by rules and regulation.

This was the message of the private sector yesterday at the first meeting between appointed consultants and business representatives to discuss the outlines for a future BEE policy framework, which is to affect every single economic sector in Namibia. “There is a lack of balance between political aspirations and economic realities,” said business tycoon Harold Pupkewitz.”Markets are much more powerful than governments.Don’t interfere in the markets, even the Chinese government does not do it,” he added.He noted that a lot had already been achieved in Namibia since Independence.”Namibia has a lot of entrepreneurs, managers and owners of companies,” Pupkewitz elaborated.Government recently embarked on the Transformation of Economical and Social Empowerment Framework (Tesef), which will lay down rules for companies to allow a certain percentage of BEE shareholding, appoint more previously disadvantaged Namibians and set goals for training more to obtain better positions.Mike Hill, General Manager at MP Pupkewitz & Sons, said State-owned enterprises paid salaries to top managers that were 30 per cent higher than the private sector could afford.”They don’t need to compete, taxpayers pay parastatals, hence they can afford to pay such exorbitant salaries.”Hill further stated that the private sector appeared to be the training ground for previously disadvantaged management cadres.However, “after training they leave for greener pastures at the parastatals”.According to Prime Minister Nahas Angula, who opened the session for the private business sector, the Employment Equity Commission (EEC) had not achieved the results envisaged to transform the economy to benefit previously disadvantaged Namibians.”The Tesef is to achieve the desired transformation.Today’s meetings and those planned as follow-ups serve to consult all stakeholders in order to obtain an all-inclusive economy, where no sector of the population is left out,” the Prime Minister said.”We must embrace the culture of sharing.”The majority of Namibia’s two million people needed a stake in the national economy.”We can learn a lot from South Africa, but in Namibia we want to do things differently,” Angula added.The envisaged Tesef policy aimed to achieve social justice, economic growth and true ownership [of previously disadvantaged Namibians], he said.”Empowerment should not just be given.People must work to get it.If not, it will give an opportunity to nepotism and cronyism,” Angula cautioned.”The private sector can create an all-inclusive society as far as the economy is concerned – the ball is in your court,” he told the approximately 25 business representatives.The contract to develop the Tesef policy framework was outsourced for N$1,9 million to DECTI Namibia, a subsidiary of a South African company.DECTI will hold monthly consultations with the private sector, Government and social stakeholders such as labour unions and NGOs.The policy is expected to be completed by April 2008.”There is a lack of balance between political aspirations and economic realities,” said business tycoon Harold Pupkewitz.”Markets are much more powerful than governments.Don’t interfere in the markets, even the Chinese government does not do it,” he added.He noted that a lot had already been achieved in Namibia since Independence.”Namibia has a lot of entrepreneurs, managers and owners of companies,” Pupkewitz elaborated.Government recently embarked on the Transformation of Economical and Social Empowerment Framework (Tesef), which will lay down rules for companies to allow a certain percentage of BEE shareholding, appoint more previously disadvantaged Namibians and set goals for training more to obtain better positions.Mike Hill, General Manager at MP Pupkewitz & Sons, said State-owned enterprises paid salaries to top managers that were 30 per cent higher than the private sector could afford.”They don’t need to compete, taxpayers pay parastatals, hence they can afford to pay such exorbitant salaries.”Hill further stated that the private sector appeared to be the training ground for previously disadvantaged management cadres.However, “after training they leave for greener pastures at the parastatals”.According to Prime Minister Nahas Angula, who opened the session for the private business sector, the Employment Equity Commission (EEC) had not achieved the results envisaged to transform the economy to benefit previously disadvantaged Namibians.”The Tesef is to achieve the desired transformation.Today’s meetings and those planned as follow-ups serve to consult all stakeholders in order to obtain an all-inclusive economy, where no sector of the population is left out,” the Prime Minister said.”We must embrace the culture of sharing.”The majority of Namibia’s two million people needed a stake in the national economy.”We can learn a lot from South Africa, but in Namibia we want to do things differently,” Angula added.The envisaged Tesef policy aimed to achieve social justice, economic growth and true ownership [of previously disadvantaged Namibians], he said.”Empowerment should not just be given.People must work to get it.If not, it will give an opportunity to nepotism and cronyism,” Angula cautioned.”The private sector can create an all-inclusive society as far as the economy is concerned – the ball is in your court,” he told the approximately 25 business representatives.The contract to develop the Tesef policy framework was outsourced for N$1,9 million to DECTI Namibia, a subsidiary of a South African company.DECTI will hold monthly consultations with the private sector, Government and social stakeholders such as labour unions and NGOs.The policy is expected to be completed by April 2008.