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Namibia about to get much poorer in 3…2…1….

Namibia is considering taking minority stakes in mining and petroleum production companies amid increasing concerns over local ownership of valuable resources.
“We are making a case that local ownership must start with the state, which holds ownership of our natural resources,” Mines and Energy Minister Tom Alweendo told lawmakers on Monday. “The proposed state ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay,” he said.

They already gain the royalties over value produed. In economics terms that is a share of ownership.

But here they come again, violating contracts already signed. Is it any wonder that so much of Africa is piss poor?

Oh, yes, elections are next year…..

8 thoughts on “Namibia about to get much poorer in 3…2…1….”

  1. Just when I thought Namibia was OK to do business in. I have a client building a mine there at the moment and their stock took a beating today as a result.

    No good comes from nationalisation.

  2. Mr Weeno could just slap some “windfall” taxes on the miners, like the Tories do.
    But I suspect his ambition is greater: to get free shares in the quoted companies, not just the local subsidiary.

  3. True philip. As Oz has done.

    I saw one article claiming that government debt would be reduced, though of course there’d be some pissed away on new projects. The other article predicted a huge increase in government debt anyway.

    Guess which one I believed?

  4. Here at the southern tip of Africa we have a much, much better system. You’re not allowed to do business with the state unless you are majority black-owned. As a refinement, you have to chase down the ownership of your supply chain as well. Thusly, previously white-owned businesses can choose between going out of business, or giving fifty-one per cent ownership free gratis and for nothing to a figurehead. This has worked out exceedingly well for the clique that does the fronting, our ***GLORIOUS LEADER*** and instant billionaire Cyril Ramaphosa being a prime example.

  5. Thanks Southerner. I wonder if, when the blessed Voice goes through, things’ll go that way in Oz. The High Court gave the abos almost half of Oz the last time one of these was passed. So maybe we’ll southafricanise when we pass the next one.

    If we do, I’m sure the High Court’ll get its cut.

  6. It’s the same in Malaysia. There are deliberate policies to favour Malay (as in ethnic Malay, not Malaysians) required to be on the boards of businesses, majority Malays in the workforce and other regulations like it. As you can imagine, it’s held the country back, especially in comparison to their hated neighbour Singapore.

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