The Namibia Industrial Development Agency (NIDA) recorded operating losses of N$102 million for the 2024 financial year, according to its latest annual report.
The report provides an overview of NIDA’s operations over the past six years and outlines its 2025/26-2029/30 Integrated Strategic Business Plan (ISBP).
The report highlights a 28% increase in total annual expenditure, reaching N$231 million, while NIDA’s total annual income saw a 20% increase to N$165 million.
Despite this growth in income, expenses outpaced revenues, leading to the substantial operating loss.
Executive Consultant for the CFO Portfolio at NIDA Julius Nghikevali said the Agency has seen a decline in the current ratio.
“A low gearing ratio of 22% has been maintained, despite liabilities more than doubling to N$248 million. However, the current ratio has declined steadily from 79% in 2019 to 50% in 2024,” Nghikevali said.
NIDA’s assets have grown by 30% over the past six years, reaching N$1.37 billion.
Nghikevali expressed concerns over returns on assets.
“The return on assets and return on equity have not been promising. With an asset base exceeding N$1 billion, we expected a better return, but over the years, we have only seen an 11% return on both assets and equity,” he explained.
During the official launch of the report, Minister of Finance and Public Enterprises Iipumbu Shiimi commended NIDA’s finance team for their efforts in compiling a comprehensive financial report.
“The fact that you now have an annual report with financial statements that now says this is how we have spent the money, this is where we are in terms of our financial ratios—that’s a whole mark of transformation and success. This is a very good starting point,” he said.
Despite the challenges, Nghikevali emphasised that the Agency’s asset base remains strong.
A recent valuation exercise revealed that NIDA’s total assets now stand at N$3 billion. However, he stressed the need for significant adjustments to improve financial sustainability.
“Cost to income remains a key concern, as our expenses have consistently outpaced our revenues. This is a critical area that needs to change, and the property portfolio has seen substantial growth, and this is something we are looking to leverage for better financial returns.”
Founded in 2018, NIDA aims to advance Namibia’s industrialisation agenda in line with the country’s policies and developmental strategies, such as the Growth at Home Strategy, Harambee Prosperity Plan and the fifth National Development Plan.
