The Ministry of Finance has warned that the Namibian government does not borrow money through private individuals, companies or agents, as authorities move to clamp down on unsolicited infrastructure funding proposals targeting the state.
The warning comes as government faces increasing approaches from financiers and intermediaries seeking to channel money into Namibia through infrastructure projects outside formal state borrowing channels.
Finance Ministry Executive Director Oscar Capelao said the ministry had received “numerous funding proposals from private entities and/or agents acting on behalf of investors with funds looking for an investment home in Namibia”.
“A number of these investors have identified specific projects to channel their funds to. Most of the proposals also indicate the intention of the proponents to appoint contractors to implement the identified projects, on behalf of the Government,” Capelao said.
While acknowledging the potential value of the funding interest, Capelao made it clear that government borrowing cannot be arranged through unsolicited private deals.
“In view of the above, the Ministry of Finance would like to inform the public that the Government does not borrow money for funding for projects from unsolicited bids through individuals, private companies or agents acting on behalf of private companies or individuals,” he said.
The statement signals growing concern within government over attempts by intermediaries to position themselves between investors and the state amid Namibia’s expanding infrastructure and energy development drive.
Capelao stressed that all infrastructure financing arrangements are governed by strict laws and procurement procedures under the National Planning Commission Act, the State Finance Act and the Public Procurement Act.
“The Ministry of Finance would like to recognize the opportunity that these funding proposals present to the Government of Namibia. Such opportunities could allow the Government to utilise such finances to fund national infrastructure projects, with the Government as the underlying borrower,” he said.
However, he said all projects must first go through formal state evaluation and approval processes before any funding decisions are considered.
According to the ministry, the National Planning Commission Secretariat is mandated to appraise, monitor and evaluate capital and development projects submitted by government offices, ministries and agencies before recommendations are made for possible funding.
Capelao said investors interested in financing Namibia’s infrastructure development should instead participate in official government borrowing programmes through Treasury bill and bond auctions conducted by the Bank of Namibia.
“Local and foreign investors with excess funds to finance infrastructures in Namibia are hereby invited to participate in the weekly Government auctions for Treasury bills and Bonds offered by the Bank of Namibia,” he said.
He added that investors could also participate through government’s international bond issuances undertaken periodically in global markets.
