FNB Namibia and the Central Procurement Board of Namibia (CPBN) have stepped up efforts to reduce delays in public procurement projects by improving the issuance of performance guarantees required for government contracts.
The two institutions recently held a strategic engagement in Windhoek focused on strengthening collaboration around performance guarantees, which are mandatory before the awarding of public contracts under the Public Procurement Act.
The discussions come as concerns persist over project implementation delays and the challenges faced by businesses in meeting procurement requirements.
CPBN Chief Executive Officer Idi Itope led the board’s delegation, while FNB Namibia was represented by Head of Enterprise Banking Leonard Hamunyela and Manager of Public Sector Priscilla Akudhenga.
During the engagement, FNB outlined the process involved in obtaining performance guarantees, including application requirements, credit assessments and processing timelines. The bank also highlighted common challenges encountered by bidders and measures that could help speed up approvals.
The two organisations agreed on the need for closer cooperation between financial institutions and procurement authorities to reduce bottlenecks that can delay the commencement of public sector projects.
Hamunyela said performance guarantees play a far greater role than simply meeting regulatory requirements.
“Performance guarantees are often seen as a compliance step, but in reality they are a critical enabler of economic participation. When these processes are unclear or delayed, it is not just paperwork that is affected, but the pace at which projects move and opportunities are realised,” he said.
He added that improving the process would give businesses greater certainty while helping government projects proceed more efficiently.
Performance guarantees serve as a safeguard for public funds by ensuring contractors meet their obligations once awarded a tender. Under the Public Procurement Act, they are a prerequisite for the awarding of many government contracts.
The engagement forms part of broader efforts by the CPBN to strengthen cooperation with financial institutions and improve efficiency, transparency and accountability within Namibia’s public procurement system.
Both organisations said better coordination would help ensure local businesses are able to access procurement opportunities more effectively while supporting the timely delivery of public infrastructure and services.
