New Namibian law to compel whites to secede 25% of business ownership to blacks

The president of Namibia, Hage Geingob recently told reporters that his government plans to put a law in place, which makes it mandatory for the white-owned businesses to sell a 25 percent stake in their businesses to blacks.

“We have to address the underlying structural impediments which make it difficult, if not impossible, for Namibians to effectively participate in the economy,” said Geingob.

According to Bloomberg, the bill outlines six areas to increase black citizens’ participation in business, including developing people’s skills and providing financing for those disadvantaged by inequality to buy stakes in companies.

Currently, only about 6 percent of Namibia’s 2.5 million citizens are white and they own most of the enterprises in Namibia. This is a legacy of the white-minority rule South Africa imposed when it controlled Namibia from World War I to 1990. During this period the black people being disenfranchised and displaced.

South Africa has a similar policy in place because it focuses on increasing black ownership of companies rather than raising education standards to match a skills shortage faced by the country.

Bloomberg further revealed that the Namibian president said that its government will draw comparative experiences from South Africa, but its legislation will be unique.