EPRA says equity bill could stifle economic growth

The Economic Policy Research Association (EPRA) has criticised the draft Employment Equity Bill, warning that in its view the proposed legislation will, instead of removing barriers to business, create new ones.In a recent report, EPRA noted that “despite good intentions, the bill introduces a rigid, bureaucratic framework that threatens to stifle job creation, discourage investment and deepen unemployment.”Moreover, EPRA argues that the bill “imposes complex compliance obligations, unrealistic demographic targets, intrusive state oversight, and harsh penalties on businesses – in a country where the supposed "target" group for affirmative action (white males) makes up less than 0.5% of the population.”The association cited surveys conducted among Namibian businesses that "show overwhelming opposition to the bill. Business owners report that affirmative action laws already hamper investment, growth, and job creation – and that the proposed changes will only make matters worse.”The report added that there is “extremely limited evidence that these laws continue to serve a justifiable purpose. No government research appears to have been conducted to assess their real economic and social impact in the Namibian context.”The association argued that Namibia’s affirmative action and employment equity laws have failed to achieve their intended goals. “Namibia’s affirmative action laws, introduced shortly after independence, aimed to correct historical injustices and build a more equitable society. However, more than 35 years later, the evidence suggests these laws – and especially the proposed new Employment Equity Bill – risk increasing unemployment and hamper economic growth.Concerns dismissed However, Employment Equity Commissioner Otniel Podewiltz has strongly rejected EPRA’s position.Citing progress made under affirmative action, he pointed to continued improvements in gender balance, senior-level representation, skills transfer, and increased awareness of employment equity issues compared to the pre- and immediate post-independence periods.Responding to concerns that the bill could harm job creation, investment and employment levels, he said: “We believe that is simply not true.”“On the contrary, employee development, non-discrimination and inclusivity are part of the value systems of nearly all employers in Namibia – including foreign investors."Podewiltz said data has shown a gradual improvement in the submission of affirmative action and annual reports, as required by law.This has come despite a rise in the number of businesses covered by the legislation after the compliance threshold was lowered in March last year from companies with 25 or more employees to those with ten or more.According to Podewiltz, employee numbers have shown no significant changes since the threshold was adjusted.He agreed that better results cannot be expected if the same approach continues. “What needs to be done is what the new bill proposes, based on more than 20 years of implementation experience,” Podewiltz said.He confirmed that the proposed draft amendment bill is currently being circulated for consultations. The current version is referred to as Version 2 of March 2025, as consultations have been ongoing since September 2024.“In the bill and throughout the many consultations held so far, it has been made clear that a key part of the approach behind the legislation is to build in a degree of flexibility,” he said. “The one-size-fits-all concept does not work,” he added.

EPRA says equity bill could stifle economic growth

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Namibian Sun 2025-05-16

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EPRA says equity bill could stifle economic growth

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Namibian Sun 2025-05-16

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