The National Petroleum Corporation of Namibia (NAMCOR) says it has recovered from a financial crisis thanks to a N$1.2-billion sovereign guarantee provided by the government.
The lifeline has allowed NAMCOR to stabilise its operations and continue its vital role in the country’s energy sector.
According to NAMCOR’s Interim Managing Director, Ebson Uanguta, the support came at a crucial time, as NAMCOR faced mounting debt and a loss of trust from creditors, which severely impacted its ability to conduct business.
“The funding was provided by commercial banks, with a N$1.2-billion sovereign guarantee from the Namibian government. This support has been crucial in helping us stabilise the company. It allowed us to restructure part of our debt and restore operations at a critical time when we were losing the trust of our creditors. Without that trust, they were unwilling to trade with us, which had a significant negative impact on NAMCOR,†he said on Tuesday.
Uanguta further explained that in addition to financial support, NAMCOR implemented a strategic recovery plan, focusing on improving internal efficiencies and addressing governance lapses.
Key measures included cutting unnecessary expenses, streamlining processes and updating policies to prevent future issues.
“These efforts were initiated by the team already in place, and when I joined in January, we continued to build on this foundation, ensuring that all policies were fully updated and aligned with best practices,†he said.
He also said one of the significant internal changes was the consolidation of the sales and marketing department with the logistics and supply unit.
Previously working in silos, these two departments are now unified, resulting in more coordinated operations and improved overall efficiency.
“A key challenge was breaking down silos between various departments. For example, in the downstream division, sales and marketing were separate from logistics and supply, even though they are closely linked. Sales and marketing rely on products from logistics and supply, and without proper coordination between these departments, problems can arise, which impact NAMCOR’s operations,†he said.
NAMCOR is the national oil company of Namibia and the custodian of all the Namibian exploration and production data.
