NIPDB to fix ‘investor-scaring’ NEEEF
Investment promotion chief Nangula Uaandja told President Hage Geingob that NEEEF could be a stumbling block to the country’s investment ambitions.
JEMIMA BEUKES
WINDHOEK
Namibia Investment Promotion and Development Board (NIPDB) chief executive officer Nangula Uaandja says - in its current format - the New Equitable Economic Empowerment Framework (NEEEF) is likely to scare off investors the country so desperately needs.
She added that her office is tasked with whipping the bill in line.
Some investors have deployed a watch-and-see approach amidst lack of clarity regarding the nuts and bolts of the empowerment scheme.
Namibian Sun understands, for example, that one of the issues delaying the takeover of Erindi Private Game Reserve by Mexican billionaire Alberto Baillères is the uncertainty around NEEEF.
The framework is deemed to give tremendous discretionary powers to an as yet unspecified minister, according to the Institute for Public Policy Research (IPPR).
“Although it drops the earlier 25% equity requirement, the Bill is drafted in such a way that such a requirement could be brought in again through the ownership pillar,” IPPR earlier commented, adding that there’s little chance any investor would know what regulatory hurdles they would face for at least another five years.
Another objective of NIPDB is to minimise foreign direct investment (FDI) outflow and to increase reinvestment. The board has been tasked to ensure a reinvestment of N$2.5 billion while reducing the number of days it takes to register a business in the country.
With regards to NEEEF, Uaandja said they have had consultations with Prime Minister Saara Kuugongelwa-Amadhila to see how they can reconcile differences and iron out issues challenging the private sector.
“How do we achieve what government wants to achieve and bring the private sector along? We believe that indeed empowerment is important, looking at where we are, but the point is how do we implement it in a manner that it is not damaging but actually promotes government objectives,” she said.
She added that the private sector has identified a number of constraints which will hamper doing business, including unnecessary red tape and bureaucracy that burden investors.
Major policy reforms
Meanwhile, the NIPDB strategic plan pointed out that there is a need for government to embark on major policy reforms to ensure that the country becomes an attractive investment destination.
Namibia must enhance its competitiveness and the ability to facilitate business for investors, especially during the Covid-19 pandemic, which has intensified competition for investments.
According to Uaandja, some investors found Namibia to be non-committal in the sense that it invites investors with urgency but doesn’t make commitments and also makes very little effort to remove bottlenecks to doing business in the country.
“Namibia is far behind its peers in most aspects of the Ease of Doing Business rankings, which indicates that major reforms are required in all facets of business-facing services. NIPDB seeks to create a positive stakeholder perception of the board to foster recognition of the board and build a strong brand,” the plan stated.
The board has undertaken to form an effective Ease of Doing Business working committee with relevant partners and stakeholders from both the public and private sector as well as conducting aftercare visits with up to 20 investors on a monthly basis.
[email protected]
WINDHOEK
Namibia Investment Promotion and Development Board (NIPDB) chief executive officer Nangula Uaandja says - in its current format - the New Equitable Economic Empowerment Framework (NEEEF) is likely to scare off investors the country so desperately needs.
She added that her office is tasked with whipping the bill in line.
Some investors have deployed a watch-and-see approach amidst lack of clarity regarding the nuts and bolts of the empowerment scheme.
Namibian Sun understands, for example, that one of the issues delaying the takeover of Erindi Private Game Reserve by Mexican billionaire Alberto Baillères is the uncertainty around NEEEF.
The framework is deemed to give tremendous discretionary powers to an as yet unspecified minister, according to the Institute for Public Policy Research (IPPR).
“Although it drops the earlier 25% equity requirement, the Bill is drafted in such a way that such a requirement could be brought in again through the ownership pillar,” IPPR earlier commented, adding that there’s little chance any investor would know what regulatory hurdles they would face for at least another five years.
Another objective of NIPDB is to minimise foreign direct investment (FDI) outflow and to increase reinvestment. The board has been tasked to ensure a reinvestment of N$2.5 billion while reducing the number of days it takes to register a business in the country.
With regards to NEEEF, Uaandja said they have had consultations with Prime Minister Saara Kuugongelwa-Amadhila to see how they can reconcile differences and iron out issues challenging the private sector.
“How do we achieve what government wants to achieve and bring the private sector along? We believe that indeed empowerment is important, looking at where we are, but the point is how do we implement it in a manner that it is not damaging but actually promotes government objectives,” she said.
She added that the private sector has identified a number of constraints which will hamper doing business, including unnecessary red tape and bureaucracy that burden investors.
Major policy reforms
Meanwhile, the NIPDB strategic plan pointed out that there is a need for government to embark on major policy reforms to ensure that the country becomes an attractive investment destination.
Namibia must enhance its competitiveness and the ability to facilitate business for investors, especially during the Covid-19 pandemic, which has intensified competition for investments.
According to Uaandja, some investors found Namibia to be non-committal in the sense that it invites investors with urgency but doesn’t make commitments and also makes very little effort to remove bottlenecks to doing business in the country.
“Namibia is far behind its peers in most aspects of the Ease of Doing Business rankings, which indicates that major reforms are required in all facets of business-facing services. NIPDB seeks to create a positive stakeholder perception of the board to foster recognition of the board and build a strong brand,” the plan stated.
The board has undertaken to form an effective Ease of Doing Business working committee with relevant partners and stakeholders from both the public and private sector as well as conducting aftercare visits with up to 20 investors on a monthly basis.
[email protected]
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