The Republic of Namibia has proposed a new bill that will
empower previously disadvantaged Namibians, introducing a new
requirement forcing all businesses to be at least 25% held by
the 'racially disadvantaged, the disabled, and
Critics of the bill suggest that it is drafted too closely
to match the Broad Based Black Economic Empowerment (BBBEE) act
in South Africa, an equivalent bill passed in 2003 following
widespread criticism of narrow-based empowerment in the
country. The bill has proved problematic for South Africa in
recent years, and an ongoing court case to determine whether
businesses are 'once empowered always empowered’
or not, has cast a heavy shadow over enterprise, in
particularly the mining industry.
"It seems to be written in terms that are very similar to
the BBBEE act of South Africa," said
Peter Leon, partner and Africa co-chair at Herbert Smith
Freehills in Johannesburg.
"BBBEE has regrettably created a...