The Namibia Industrial Development Agency (NIDA) requires an immediate financial injection of N$579.7 million to stabilise its operations and sustain key industrialisation projects across the country, according to a parliamentary standing committee on natural resources.
The funding requirement were highlighted in the committee’s final report, which examined challenges facing the state-owned industrial development agency.
According to the report, N$550 million is urgently required to support NIDA’s Integrated Strategic Business Plan, while a further N$29.7 million is needed to clear mounting utility arrears that have already begun disrupting operations.
The committee said financial constraints have resulted in widespread service interruptions at NIDA-managed facilities.
“Electricity has been blocked or disconnected at 69 industrial parks, while water supplies have been cut off at 89 facilities due to unpaid utility bills,” the report noted.
In response to the crisis, NIDA has written off utility bills for affected industrial parks and appointed a debt collector to recover outstanding payments from tenants.
The committee said the funding would also be used to rehabilitate and renovate properties under NIDA’s asset portfolio, many of which have deteriorated as operational costs increased.
It further warned that delays in key policy reforms are constraining the agency’s ability to deliver on its industrialisation mandate.
Among the bottlenecks cited are the review of the Diamond Act, which has been pending since 2019, and the non-operationalisation of Special Economic Zone (SEZ) incentives, both of which are seen as critical to attracting investment and stimulating industrial development.
Established under the NIDA Act of 2016, the agency plays a central role in Namibia’s industrial development strategy and currently oversees 148 properties nationwide.
These include large-scale projects such as the Kavango cattle ranch, which has generated sales of about N$15 million, and the Naute Irrigation Farm, valued at N$233 million.
Despite these initiatives, the committee warned that NIDA’s operations remain under financial strain.
The agency recorded operating losses of N$102 million in the 2024 financial year, with expenditure rising to N$231 million while income reached N$165 million, leaving costs consistently higher than revenue.
NIDA’s asset base has expanded by 30% to approximately N$1.37 billion, but returns remain relatively low at around 11% on both assets and equity, reflecting limited financial productivity despite growth in asset value.
The committee said timely funding, infrastructure rehabilitation and accelerated policy reforms are critical to ensuring NIDA continues to function as a key driver of Namibia’s industrial development and economic growth.
