The Ministry of Information and Communication Technology (MICT) will reduce subsidies to public entities under its oversight by 3% in the coming financial year, with similar reductions to be applied annually over the next three years.
The phased cuts were announced by Minister Emma Theofelus, who said the move is intended to reduce reliance on government support and improve the financial sustainability of public enterprises within the ICT sector.
“For public entities that receive subsidies from the Ministry of ICT, I wish to inform you that from the coming financial year your subsidy will be reduced by 3%. There will be a further 3% reduction in the following financial year, and another 3% reduction in the year after that,” Theofelus said.
She described the decision as a “do or die situation”, warning that public entities must begin to operate with greater financial discipline and reduce their dependence on state funding.
The minister said public enterprises are expected to improve business processes and increase their own revenue generation rather than relying primarily on government subsidies.
“We must invest in business processes that allow our public enterprises to be less dependent on public subsidies and more focused on delivering services that generate income,” she said.
The subsidy reductions come amid growing pressure on public enterprises to improve performance and reduce the fiscal burden on the state. Theofelus said the cuts signal a shift towards tighter fiscal discipline and stronger expectations around operational efficiency within the ICT sector.
Public entities under the MICT include the Communications Regulatory Authority of Namibia (CRAN), Telecom Namibia, Powercom, the Namibian Broadcasting Corporation (NBC), the New Era Publication Corporation (NEPC), and the Namibia Press Agency (NAMPA).
These entities are either regulated by the ministry or receive operational funding through it.
Theofelus also said public enterprises must align their operations with government policy frameworks, including the Swapo Party manifesto and the priorities of the current administration.
“Our job is to implement and to ensure that the deliverables outlined in the Sixth National Development Plan are implemented in full,” she said.
On ICT regulation, the minister emphasised the need for licensees to provide affordable and reliable services, noting that consumers pay for technology services and should receive value for money.
She added that infrastructure sharing among licensees should become standard practice to maximise investment and efficiency in the sector.
“As public enterprises, you are an extension of government. You are expected to deliver services on behalf of government and to accept the same scrutiny and criticism that government faces,” Theofelus said.
