What’s the Obsession With Share Ownership?

Debates about the government’s ambitious green hydrogen project have seemingly become fixated on Namibians having to own shareholding in the companies that plan to set up operations in the country.

The Namibian presidency is driving self-praise for apparently negotiating a respectable 24% equity in Hyphen Hydrogen Energy and is already mobilising about N$14 billion to invest. Where Namibian taxpayers will get that money and how it will be paid back is unclear.

What is being promised is that the returns will be great.

In fact, opposition politicians are complaining that Namibia is getting “only” 24% in Hyphen and not more.

Since independence, Namibia’s ruling elite seem to have been obsessed with acquiring shareholdings in companies as the ideal “economic empowerment” route.

Sadly, that fixation has come at the expense of broader society: Benefits such as skills and the authority to business operations as well as measures to draw fair taxes to state coffers.

We urge policymakers to start focusing on taking steps that will offer the most benefits for the majority of Namibians rather than using public resources for a few.

Experience has shown the country cannot be expected to depend on the ‘largesse’ of those who sit at the high table.

Quantifiable targets for long-term and meaningful jobs, skills training, taxes and royalties earmarked to uplift the poor is the only way to show empowerment.