STANDARD Bank economist Mally Likukela said the New Equitable Economic Empowerment Framework can work if appropriately designed to suit the situation on the ground.
Likukela said this on Thursday when he answered questions from the public during the bank’s #AskOurEconomist interactive sessions on Facebook and Twitter.
According to Likukela, there are conditions that should be put in place for the empowerment framework to work.
Among some of the conditions Likukela spoke about are proper infrastructure, quality public education for the intended group.
The bi-monthly #AskOurEconomist session, which started on 10 March this year, seeks to enable the public to interact and engage directly with Likukela on current and relevant economic matters.
During the interactive session, Likukela said in countries such as Malaysia and the United States, an appropriately designed transformational policy like NEEEF worked.
Asked how practical NEEEF is for the majority of low-income-earners and the unemployed, Likukela said the framework intends to empower low earners by ensuring that big companies issue shares or equity to their employees, particularly those who cannot afford to buy them at market-related prices.
“The other transformational pillar is that of compelling big companies to roll-out corporate social responsibility programmes to plough back into society/community. This can help the unemployed in that community, for example by supporting SMEs with coaching and training for free,” he added.
However, he said that apart from tender benefits for companies which comply, he would, if given a chance, also include more benefits to incentivise them to empower more previously disadvantaged groups.
“I would put entrepreneurship at the top pillar of empowerment. When you empower people to start their own business instead of them waiting to acquire shares in already established businesses, it is like teaching a man to fish rather than giving him fish,” he stated.
Other questions posed during the session included quests for clarification on what NEEEF really is all about; who the real beneficiaries of the Bill are, and whether it is a conducive way to address income inequalities, among others.
