Namibia’s commercial public enterprises hold a total of N$120 million in value assets with N$60 billion in liabilities and a net asset value of N$60 billion.
According to the Parliamentary Standing Committee on Economics and Public Administration’s report, there are currently 81 state-owned enterprises (SOEs) collectively employing approximately 25,000 Namibians.
“Namibia currently owns 81 public enterprises. Total asset value of commercial public enterprises (CPEs) stands at N$120 billion, liabilities at N$60 billion and net value assets at 60 billion. The employment count stands at 25,000,” the report on maximising the potential of public administration, public service management and public service delivery in Namibia, reads.
The report highlights that public enterprises continue to face several challenges, including historical debts, significant financial losses, limited foreign direct investments, corporate governance violations, non-compliance, inadequate board competency, lack of accountability, as well as issues related to corruption and mismanagement.
Noting the challenges faced by public enterprises, the Ministry of Finance and Public Enterprises, introduced measures to enhance accountability and efficiency.
One of the reforms includes the appointment of board members through competitive and transparent interviews, with 50 boards already selected through this process.
Additionally, all board positions are now publicly advertised, eliminating automatic board renewals to promote fresh leadership and stronger oversight.
“To address the challenges, the ministry introduced measures such as the appointment of board members through competitive interviews where 50 Boards have been appointed through open interviews, all boards are being advertised in the media and no more automatic board renewals,” the report read.
Consequently, the Parliamentary Standing Committee said there is a need for stronger fiduciary responsibility among SOE board members, particularly in sectors crucial to national development, such as food security.
Enterprises managing green schemes will be closely monitored to ensure they receive adequate support and fulfill their mandates while board members will be held accountable for non-performance.
“The Ministry of Finance and Public Enterprises should conduct an online public assessment of State-Owned Enterprises to gauge their value and relevance to the public,” the report reads.
