NEF pleads with members to stay

NDAMA NAKASHOLE

The Namibian Employers Federation (NEF) is struggling to retain its members because of tough economic conditions.

In his report, which forms part of the annual report for the year ended 31 December 2017 and launched last week, NEF chairman Johann van Rooyen said their membership remained stagnant, ending the year 2017 with 285 direct corporate members.

This, he said, was exactly the same number as the year earlier, although they had spent a substantial amount in marketing to boost membership numbers.

However, several companies did not renew their membership, either because they had closed or were in dire financial straits and saving wherever they could, while others had reduced staff and thus reduced their subscription fees.

In his report, NEF president Elia Shikongo urged members to encourage friends and business associates to join the federation and maintain their membership.

“I accept and understand that that some companies are struggling financially at the moment , but if the NEF were to lose the strength of its voice, we the employers of the country would struggle even more to raise an effective voice and bring about meaningful change,” said Shikongo.

Van Rooyen thanked the federation leadership for still managing to reach “very closely” their budgeted subscriptions for the year.

“One point of note is that we succeeded in adding the Federation of Namibian Tourism Associations (FENATA) to our associational membership, which brings the entire tourism industry under one banner, (and) we will consequently lose Hospitality Association Namibia (HAN) as a specific member, noting that HAN was one of our earliest NEF members.”

Year in detail

In their annual report for the year ended December 2017, the NEF said they visited 40 different companies whom they deemed as potential members and managed to recruit 25 new members. This was despite the fact that many potential employers told them they could not afford to pay new membership fees due to the current economic challenges facing the country.

Unfortunately the 25 new recruitments were offset by others not renewing their membership.

Financial weather

With a net surplus of N$200 153, this is deemed satisfactory in the midst of a recession.

According to the report, the full effect of the slowing of the economy will only be felt in the 2018 financial year, because most companies had paid their subscriptions before feeling the full effect of the slowdown.

The NEF said it had achieved 98% of its budgeted income in 2017.

Sustainability

The directors believe that the company has adequate financial resources to continue operations for the foreseeable future and accordingly, the annual financial statements have been prepared on a going concern basis, the report says.

“The directors have satisfied themselves that the company is in a fair financial position and that it has access to sufficient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of any new material changes that may adversely impact the company. The directors are also not aware of any material non-compliance which may affect the company,” the report further reads.

The numbers

According to its statement of comprehensive income, the federation had revenue of N$2.27 million in 2017, as compared to the N$1.94 million in 2016. Operating expenses stood at N$2.59 million (N$2.34 million in 2016), which led to the operating deficit of N$67 000. Operating deficit was N$25 000 in 2016.

Investment revenue was higher in 2017 at N$132 000 than 2016’s N$85 000.

Surplus for the year 2017 was over 3 times more than the 2016’s N$60 000.

The total equity of the company stood at N$774 468 as at 31 December 2017.

(*Numbers are rounded off)