At the Namibia Investment Promotion and Development Board’s (NIPDB) annual general meeting held on 23 November 2023, Minister in the Presidency Christine
//Hoebes indicated that following the completion of its initial 24-month operationalisation strategy, the NIPDB has effectively outgrown its infancy stage. As such, the minister directed the Advisory Board to review the entity’s governance structure, determine whether it is still fit for purpose, and make necessary recommendations to the President. 

Based on that review and respective recommendations, it was agreed that the NIPDB will transition to a new governance structure that is fully aligned to the principles of the Public Enterprises’ Governance Act (PEGA). 

To effect this change, the Articles of Association were amended in terms of which the transition will be made, bringing about several changes. Primarily, the board will be composed of at least seven independent non-executive members, one of which will be appointed by the President to serve as chairperson. 

The NIPDB CEO, to be appointed by the President, will be invited by the board to attend meetings in an ex-officio capacity. Further to that, a representative from the industrialisation and trade ministry, not below the rank of deputy executive director, will also be invited by the board to attend meetings in an ex-officio capacity. 

Functionally, the NIPDB CEO will report to the board of directors, with an additional reporting mandate to the President, in their capacity as chairperson of a technical investment committee. This committee will be composed of members representing various government entities and will be responsible for driving government service delivery. Its aim is improving Namibia’s Ease of Doing Business and Competitiveness through infrastructure and policy, as well as fast-tracking the investments conversion, amongst others.

In order to give effect to the aforementioned resolution, the amended Articles of Association are to be registered, and the process of appointing the new board of directors will commence with immediate effect. 

The mandate and legitimacy of the NIPDB is further set to be legislated by Parliament in the Namibia Investment Promotion and Facilitation Bill, which is currently in the drafting process. These two processes are not mutually-exclusive.

NIPDB was established following a proclamation by late president Hage Geingob when he announced his second term government in March 2020. This proclamation was supported by a Cabinet resolution, which further positioned the NIPDB as an entity in the Office of the President. The NIPDB effectively assumed the functions of the Namibia Investment Centre and the SME division from the then industrialisation, trade and SME development ministry, which was later renamed to industrialisation and trade ministry.

At the time of the NIPDB’s establishment, Namibia was faced with multiple challenges including a stagnant and receding economy, that was being pulled down by negative economic growth and declining private sector investments. This was in turn compounded by persistent high levels of unemployment, income inequalities and poverty. 

“In order to reap immediate benefits, the NIPDB needed a unique model of governance, one that enabled the organisation to be agile in decision-making and implementation, and with close proximity to policymakers in order to make recommendations necessary to effect the required change. However, while it was important for the NIPDB’s governance structure to suit the needs and demands of the organisation, it was equally imperative to ensure that it did so without compromising the key principles of any organisation regardless of scale, to ensure appropriate oversight, accountability and compliance with relevant laws and regulations,” reads an NIPDB statement issued by CEO Nangula Uaandja. 

Since its inception, the NIPDB has been governed by an Advisory Board composed of eight independent, non-executive members appointed to oversee the organisation and provide direction, support and guidance to the CEO and President. The Advisory Board, whose term is set to end on 31 October 2024, reports to both the Office of the President and the Ministry of Finance and Public Enterprises.