THE Namibian affirmative action and employment regulations have been criticised for creating a 'wrong' notion that white or former advantaged communities control the economy.
This is contained in a report by Economic Policy Research Association consultant Eben de Klerk in which he says the regulations drive a wrong narrative about the economic control of the means of production.
De Klerk argues that regulations in the Affirmative Action Act and the Employment Services Act drive a narrative that whites own 95% of the economy and that whites hold 30% managerial positions, despite being 0,4% of the workforce.
"Such narratives are objectively false, even if one only studies the government's own official reports and statistics," De Klerk said.
He said the regulations, issued in September 2022 by the labour ministry, force change in ownership and staffing of private sector entities.
De Klerk said the government's rhetoric remains that the bulk of Namibians are victims of external threats and the evils of apartheid four decades ago, and that only the government can be trusted to save the Namibian people from these 'enemies'.
"In the process, the government has put in place policies to control the private sector, and ultimately created a rent seeking economy. These controls came in the form of ever-increasing bureaucracy and breach of privacy of private persons and entities," De Klerk said.
He said the more the government increases its bureaucratic control over the private sector, the more it can advance the rent-seeking economy through cadre employment and nepotism - apart from the benefits of bribes on the side.
According to him, the predictable result of such a system is reduced investment, reduced tax revenue and reduced employment for the bulk of Namibians who do not enjoy the 'privilege' of being connected to the top of the bureaucratic gatekeepers.
"In a system controlled by gatekeepers, those who are not connected can only pray that a bribe may at least bring about some sort of equal or preferential opportunity to exercise rights and freedoms which are actually guaranteed in the Constitution.
He added that those who cannot afford bribes, must settle for a kick-back arrangement, sometimes in the form of sacrificing a portion of ownership, to be able to do business.
De Klerk further stressed that if affirmative action means that competence must be pushed to the margins, one must ask whether this is beneficial for the majority of previously disadvantaged persons.
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"If policy is based on lazy arguments (which are politically convenient but not factually accurate), then this will have disastrous consequences for our economy, including reduced investment and increased unemployment," De Klerk added.
De Klerk further argued that the government has no room left to move to create employment, as tax revenue and ballooning debt simply do not allow for this.
"The combination of restrained private sector growth and the government having reached its employment ceiling is a ticking time bomb. The worst policy direction under these circumstances is to restrain private sector growth and to hamper private sector recruitment even further," he added.
Meanwhile, Namibia Local Business Association (Naloba) spokesperson Marius Nangolo said while the association caters for all types of businesses, the socio-economic field is not balanced.
He said many white Namibians still benefit from wealth attained before independence.
"Let's be honest, the playing field is still not levelled. We still find some firms in Namibia where employees and managers are predominantly white and therefore consultations need to be done to assess how best we can work together," Nangolo said.
Nangolo said it is also known that many Namibians lack the necessary skills for the formal job market.
"A business needs competent people, it is not only about giving a job to people who cannot do the job. We must build capacity in our people," Nangolo said.
