Affirmative action failures land firms in hot water

Seven employers could be facing fines after the Employment Equity Commission (EEC) disapproved their affirmative action reports for failing to comply with the Affirmative Action (Employment) Act.

The warning follows the conclusion of the EEC's latest review panel hearings held in Windhoek from 24 to 25 June, where commissioners reviewed the affirmative action reports of 11 employers.

Four employers were granted compliance certificates, while seven had their reports rejected and were issued with final orders of non-compliance.

Among the most notable cases was Namfisa, whose 2026 affirmative action report was rejected after the commission found the financial regulator failed to appoint a Namibian understudy for a specialised actuarial position as required.

As reported recently by Namibian Sun, EEC review officer Dominga Murenga said Namfisa submitted its report in February after delaying the process while seeking an exemption from the understudy requirement. The exemption was not finalised before the reporting deadline, resulting in the report being disapproved.

The review panel also disapproved the affirmative action reports of Oshakati Town Council, NovaNam Group, City Lodge Hotels (Namibia) trading as Town Lodge Windhoek, Nutam Operations, AB InBev Namibia and Outapi Town Council.

In a statement issued last week, the commission said the rejected reports failed to meet one or more legal requirements, including appointing qualified Namibian understudies to facilitate skills transfer, consulting employees during the preparation and implementation of affirmative action plans, and addressing shortcomings previously identified during earlier reviews.

"The commission emphasises that these requirements are not procedural formalities but fundamental obligations intended to ensure meaningful implementation of affirmative action measures and to promote equal employment opportunities in Namibia," EEC commissioner Otniel Podewiltz said.

The EEC warned that under the Affirmative Action (Employment) Act, an employer whose affirmative action report is disapproved is regarded as having failed to comply with the law.

The only employers to secure compliance certificates during the hearings were Bon Okapuka Crusher CC, Benz Building Supplies, Nkasa Security Services CC and Tristone Business Trust.