The Namibia Chamber of Commerce and Industry (NCCI) has recommended that commercial public enterprises (PEs) enter partnerships (PPPs) with private sector firms to improve operational efficiency and profitability.
The call by the business grouping comes amid concerns about the never-ending subsidisation of PEs by taxpayers.
“NCCI suggests PEs go into partnerships with private companies. Then they will also pay tax, which government needs to fund social programmes such as building and resourcing schools and clinics,” Victoria Joel, Vice-Chairperson of NCCI’s Ondangwa branch told a consultative meeting attended by Finance Minister Iipumbu Shiimi and National Planning Commissioner Oberth Kandjoze, citing the success story of MTC as an example.
“A good starting point is the green schemes. Also, TransNamib and other PEs including the Namibia Broadcasting Corporation (NBC), the National Housing Enterprise (NHE), the Namibia Wildlife Resorts (NWR), and the waterfront companies in Katima Mulilo and Luderitz. MTC was listed on the Namibian Stock Exchange and the government remains the main shareholder, but Namibians were given a chance to buy shares. Recently, MTC declared a dividend against profit, making it a win-win for all.”
For the 2022/23 financial year, 10 PEs were allocated N$746.8 million in total as a government subsidy by the Ministry of Public Enterprises, taking up more than 90% of the ministry’s budget of over N$790.67 million.
Joel regretted the many business-unfriendly rules and regulations in the country, with high import duty on vintage clothes one of the areas cited as negatively impacting entrepreneurs.
“Other contributions concerned the high customs and excise duty set against the importation of vintage clothing. It was suggested that the government review the charge per kilogram and as motivation, attention was drawn to the fact that selling vintage clothing is the only income of many micro-enterprises,” she said.
At the consultative session, NCCI also recommended a nationwide taxation educational exercise in all 14 regions to encourage tax payment and compliance.
“The proposed campaign should also be run on local radio stations, newspapers and for younger Namibians on social media platforms,” Joel said.
