The Namibian Industrial Development Agency (NIDA) has projected that it will take one to two years to achieve a financial turnaround and fully leverage its assets, following an operating loss of N$102 million for the 2024 financial year.
According to NIDA’s latest annual report, the agency has remained in an operating loss position for the past six years, despite holding total assets worth N$3 billion.
NIDA Chief Executive Officer Richwell Lukonga acknowledged the financial struggles but expressed optimism about the agency’s strategic recovery plan.
“The fact of the matter is for any company, it requires at least one to two years to turn around, and in terms of our developed strategy, we expect to see some light in the second year of implementation,” Lukonga said.
Julius Nghikevali, Executive Consultant for the CFO Portfolio at NIDA, emphasized that immediate profitability remains unlikely as the agency implements new business models.
“We have remained in an operating loss position over the last six years. Based on our strategic business plan and business models going forward, we cannot expect to see profits as soon as possible because we need to turn the ship around significantly,” Nghikevali explained.
He stressed that NIDA cannot continue to operate at a loss indefinitely, saying, “We need to play our part as an organization, especially given our mandate, and ensure this ship is turned around.”
To support its recovery, NIDA is relying on its integrated strategic business plan, turnaround strategy, and revised business model. Nghikevali also pointed to potential capitalization from principal stakeholders as a key factor in achieving financial sustainability.
The report highlighted a rise in total costs from N$181 million to N$231 million in 2024, while revenue increased by 20% over the same period, reaching N$165 million. NIDA’s last recorded profit was in 2020, when it reported a N$33 million surplus.
Looking ahead, Nghikevali indicated that financial recovery would take time.
“Our plan will be published, and I’m sure many will have the opportunity to review it. Given the necessary efforts and strategic implementations, we foresee continued losses in the near future before achieving a full turnaround,” he said.
Founded in 2018, NIDA is tasked with advancing Namibia’s industrialization agenda in line with national policies such as the Growth at Home Strategy, the Harambee Prosperity Plan, and the Fifth National Development Plan.
