Why Blacks Are Not Empowered

NAMIBIA is a country that is blessed with natural resources, sound financial institutions, excellent telecommunication facilities and a world-class road network.

Why then is there still so much suffering in the country, especially among the previously disadvantaged? The problem lies in the unequal distribution of the country’s economic resources to the previously disadvantaged. Black Economic Empowerment is simply a question of power (both political and economic).The question is: who has that power? In my view that power lies in the hands of government and its established institutions (NamWater, Nampower, NamPort, Transnamib, Social Security Commission, Air Namibia, AgriBank, Roads Authority, Road Fund, Roads Contractor Company, Government Institution Pension Fund, Namibia Airports Company, National Housing Enterprise, Namibia Grape Company, Local government, etc).Government, being the sole shareholder of all these institutions has the power to instruct them to empower the previously disadvantaged Namibians.The distribution of wealth in the country also lies with this power.For the sake of this analysis, all institutions above are hereby referred to as the government (simply because they all belong to government 100%).Below are some of the reasons why Black Economic Empowerment is not working in Namibia:1. Lack of a comprehensive and implementable government policy on black economic empowerment policy – The lack of a comprehensive and implementable black economic empowerment policy by government is a serious setback towards the transfer of economic resources to the previously disadvantaged Namibians.It should have been a political decision immediately after independence to establish an economic recovery plan with the aim of transferring resources to previously disadvantaged Namibians.This policy should state it clearly to all institutions in the country to transfer resources to previously disadvantaged Namibians.2. Non-existence of a government economic recovery fund – Financial institutions in the country are very reluctant to grant upcoming black economic empowerment companies long term financial resources.Looking at our historical background, it is a fact that we were not just politically disadvantaged but also to a very large extent economically disadvantaged as well.The fact of the matter is that black-owned companies need a great deal of financial injection from the government so that their businesses are financially sound until they reach a level of self sustainability.The establishment of an economic recovery fund will be a major boost to the economic development of the country as it will help create employment and contribute directly to poverty alleviation and in the equal distribution of the country’s wealth.3. The three quotation system – This system is not conducive to black owned companies especially in an environment where banking institutions are not very supportive.This system is killing a lot of businesses in the country.The government might be thinking that they are saving money but are instead killing their own people and instead continue to give business to the already established companies.Government should establish a mechanism whereby a timeframe is introduced to give businesses to previously disadvantaged Namibians.The three quotation system is not at all conducive to an emerging sector as the lowest quotation is not necessary creating business opportunities.The system is not also conducive to the creation of wealth as the margins are very little for that purpose.4. Lack of financial assistance from the financial institutions – The white-dominated financial institutions continue to pay lip service to the public that they are there for the previous disadvantaged.This is not true.This situation has been a hindrance for the past 14 years and will continue to be like that if nothing is done about… These institutions seem to forget that most of their deposits are coming from black people as well as from government-controlled institutions.I wonder what will happen if government stops doing business with them.Being the biggest spender on goods and services, the government has a choice as to who to empower for the purchases of goods and services.This power as to who to empower is very critical to the success or failure of the concept of black economic empowerment.The nature of the Namibian economy is that most businesses (service providers) in the country depend to a large extent on government for the purchases of goods and services.Government therefore does have a considerable influence on the future of the socio economic environment of the country.In Namibia, politics and economics are closely linked and that’s because they both involve a process of empowerment.Politicians are empowered by the people (previously disadvantaged Namibians) and should therefore empower the people in return.The distribution of wealth in the country ultimately lies in the hands of government and nobody else as they seem to control a large chunk of financial resources and at the same time have the power to decide on whom to empower.It is all a matter of choice.Concerned CitizenVia e-mail Note: Name and address provided.- Ed.Black Economic Empowerment is simply a question of power (both political and economic).The question is: who has that power? In my view that power lies in the hands of government and its established institutions (NamWater, Nampower, NamPort, Transnamib, Social Security Commission, Air Namibia, AgriBank, Roads Authority, Road Fund, Roads Contractor Company, Government Institution Pension Fund, Namibia Airports Company, National Housing Enterprise, Namibia Grape Company, Local government, etc).Government, being the sole shareholder of all these institutions has the power to instruct them to empower the previously disadvantaged Namibians.The distribution of wealth in the country also lies with this power.For the sake of this analysis, all institutions above are hereby referred to as the government (simply because they all belong to government 100%).Below are some of the reasons why Black Economic Empowerment is not working in Namibia:1. Lack of a comprehensive and implementable government policy on black economic empowerment policy – The lack of a comprehensive and implementable black economic empowerment policy by government is a serious setback towards the transfer of economic resources to the previously disadvantaged Namibians.It should have been a political decision immediately after independence to establish an economic recovery plan with the aim of transferring resources to previously disadvantaged Namibians.This policy should state it clearly to all institutions in the country to transfer resources to previously disadvantaged Namibians.2. Non-existence of a government economic recovery fund – Financial institutions in the country are very reluctant to grant upcoming black economic empowerment companies long term financial resources.Looking at our historical background, it is a fact that we were not just politically disadvantaged but also to a very large extent economically disadvantaged as well.The fact of the matter is that black-owned companies need a great deal of financial injection from the government so that their businesses are financially sound until they reach a level of self sustainability.The establishment of an economic recovery fund will be a major boost to the economic development of the country as it will help create employment and contribute directly to poverty alleviation and in the equal distribution of the country’s wealth.3. The three quotation system – This system is not conducive to black owned companies especially in an environment where banking institutions are not very supportive.This system is killing a lot of businesses in the country.The government might be thinking that they are saving money but are instead killing their own people and instead continue to give business to the already established companies.Government should establish a mechanism whereby a timeframe is introduced to give businesses to previously disadvantaged Namibians.The three quotation system is not at all conducive to an emerging sector as the lowest quotation is not necessary creating business opportunities.The system is not also conducive to the creation of wealth as the margins are very little for that purpose.4. Lack of financial assistance from the financial institutions – The white-dominated financial institutions continue to pay lip service to the public that they are there for the previous disadvantaged.This is not true.This situation has been a hindrance for the past 14 years and will continue to be like that if nothing is done about… These institutions seem to forget that most of their deposits are coming from black people as well as from government-controlled institutions.I wonder what will happen if government stops doing business with them.Being the biggest spender on goods and services, the government has a choice as to who to empower for the purchases of goods and services.This power as to who to empower is very critical to the success or failure of the concept of black economic empowerment.The nature of the Namibian economy is that most businesses (service providers) in the country depend to a large extent on government for the purchases of goods and services.Government therefore does have a considerable influence on the future of the socio economic environment of the country.In Namibia, politics and economics are closely linked and that’s because they both involve a process of empowerment.Politicians are empowered by the people (previously disadvantaged Namibians) and should therefore empower the people in return.The distribution of wealth in the country ultimately lies in the hands of government and nobody else as they seem to control a large chunk of financial resources and at the same time have the power to decide on whom to empower.It is all a matter of choice.Concerned CitizenVia e-mail Note: Name and address provided.- Ed.