Some time back, the Namibia Industrial Development Agency (NIDA) embarked on a project to renovate industrial or small and medium enterprise parks countrywide.
The project cost is estimated at N$15 million. Earlier this year, NIDA informed New Era that out of a total of 148 parks and business complexes constructed countrywide, only 118 are fully-operational.
This applies to facilities spread across all 14 political regions, encompassing towns, villages and settlements throughout the country.
However, around 30 industrial parks and business complexes constructed across Namibia under the auspices of the trade ministry have encountered non-functional status due to tenants neglecting their monthly rental obligations.
These figures are contained in NIDA’s latest annual report released on Monday.
“NIDA is currently in the process of coordinating maintenance efforts, and appointing individuals responsible for preparing bids to undertake renovations at priority SME/industrial parks across the country. These renovations will be carried out over three years, depending on the availability of funds,” reads the report.
The agency has assumed custodianship of these parks, some of which were built during the ministry’s tenure, while others were completed during the era of NIDA.
Projects are on halt due to budgetary constraints, with completion awaiting the availability of funds.
New Era recently assessed parks in the Hardap region, built in 2015 to aid SMEs in tapping into the region’s lucrative tourism market.
Residents expressed concern that parks located mainly in Gochas, Gibeon, Hoachanas and Kalkrand remain deserted, becoming havens for drug use and illicit activities instead of serving their intended purpose.
A resident of Gochas, speaking on condition of anonymity, revealed that due to the lack of business activities, young people engaged in unlawful activities.
“During the night, numerous young people gather here to indulge in various activities, including smoking and loitering. This misuse of government resources is disheartening,” the resident said.
NIDA in numbers
NIDA’s total income increased from N$138 million in 2019 to N$165 million in 2024, reflecting a 20% growth over the period.
This was accompanied by a 28% rise in total expenditure – from N$181 million in 2019 to N$231 million in 2024.
Despite revenue growth, operating losses were recorded each year, with a peak loss of N$248 million in 2023, before improving slightly to N$102 million in 2024.
Notably, the only profitable year was 2020, when a net profit of N$33 million was recorded.
These numbers are included in the annual report.
Total assets expanded significantly, increasing by 30% from N$1.06 billion in 2019 to N$1.37 billion in 2024.
A major driver of this growth was the investment property portfolio, which rose to 73% – from N$456 million to N$789 million.
Shareholder’s equity showed positive momentum, increasing by 20% and reaching N$1.12 billion in 2024.