The government has outlined its revenue projections for the fiscal year 2024/25, targeting N$500 million from the remaining 9% stake in the Mobile Telecommunication Company (MTC) from its initial public offering.
Minister of Finance and Public Enterprises Iipumbu Shiimi said this initiative forms part of broader financial estimations, which also anticipate dividends of N$1.2 billion following the anticipated dissolution of the Namibia Post and Telecom Holdings Company (NPTH) during the same period.
Additionally, he said the government expects further dividends from various public enterprises such as the Bank of Namibia, Namibia Desert Diamonds (NAMDIA), and the Namibia Port Authority (NAMPORT).
“The revenue estimates also include N$1.4 billion in once-off legacy tax liabilities of selected public enterprises. Over the MTEF period, revenue growth is projected to average 5.0 percent reaching N$93.6 billion by the end of FY2026/27,” Shiimi said during the budget statement speech for the 2024/25 financial year.
This comes as the government projects revenue as a ratio of GDP to remain strong, averaging 29.9% over the MTEF.
He said despite accounting for anticipated downside risks and taking a conservative approach in the forecasts, the revenue outlook is still clouded by uncertainties in the global and domestic economies.
“Nevertheless, we remain committed to maintaining fiscal sustainability and will thus approach any unanticipated revenue shortfalls in a manner that does not compromise the gains on our fiscal metrics thus far,” he added.
This comes after the Namibian Post and Telecom Holdings Ltd (NPTH) indicated it is yet to decide what to do with the remaining 9% shares it holds after the listing of MTC.
The mobile network operator became the first public enterprise in the country’s history to successfully transition from being 100% state-owned, with Government outright owning the business through the NPTH, to fully complying with the NSX listing requirements and securing a listing on the bourse.
The listing comes as the company raised N$2.541 billion from its Initial Public Offering (IPO) which closed at the beginning of November 2021, by far the largest IPO in Namibian history and more than three times larger than the previous IPO.
At least 5,611 applications were received for 299,045,261 shares out of 367.5 million shares on offer.
All 5535 applications from the public worth N$137.242 million were fully allocated, with 76 institutional investors allocated N$2.405 billion worth of shares.
The 367.5 million shares put on offer were equal to a 49% stake owned by the Government through the NPTH.
