Rudolf Gaiseb
Two ministries are jointly working to expedite the repayment of the Namibia Industrial Agency (Nida’s) historical debts, including those of its sites and premises programme.
The Ministry of Industries, Mines and Energy, together with the Ministry of Finance, is streamlining the Integrated Business Plan of Nida approved, and to ensure the agency becomes capitalised sufficiently through the business plan, to start moving towards profitability.
Once the Integrated Business Plan is approved, capitalised and implemented, some of the projects are expected to move forward; the ones which may not be commercially feasible from Nida’s portfolio will be removed.
Nida reported a N$102 million operating loss late last year.
Local media also reported the agency was owed N$89 million, mainly in rent arrears, by 1 057 tenants.
Neverthelss, Industries, Mines and Energy Minister Natangwe Ithete reported to parliament last week, the capitalisation of the agency will take place in phases, first the capital for its historical debts.
“The bulk of the funds will come from the agency’s own asset streams,” he said.
He acknowledged no performance oversight has been in place thus far, despite the oversight structures which he has specified previously.
Through its site and premises programme on behalf of the Ministry of Industries, Mines and Energy, Nida is mandated to provide affordable workspaces to small and medium enterprises (SMEs).
However, over the years it has failed to deliver on its mission due to widespread neglect, unaffordable rental fees and the absence of basic services.
Ithete said although not all of Nida’s projects are dormant, its performance has remained below par, halting some such as agro-processing and industrial initiatives.
However, this is about to change, he said.
“The ministry is determined to turn around the situation, working together with the directors and the interim management of Nida and the ministry of finance. Going forward, Honourable [McHenry] Venaani, please watch the space,” he added.
Venaani, the Popular Democratic Movement leader, had recently raised questions concerning Nida.
Venaani questioned the operational loss and Nida’s liability increase and if the minister has taken measures to stabilise its financial position, ensuring sustainability of its operations.
The leader said that 30 business and industrial units were dormant.
While Ithete said he is uncertain of the amount, he noted that the absence of seed capital at the conception of Nida, coupled with other factors, including operational inefficiencies, contributed to its inevitable financial challenges, impeding the agency from executing its mandate.
Currently, the agency has hired security personnel to protect infrastructure at some of the sites and premises.
Ithete also directed the agency to make sure no further vandalism takes place.
Although there is the cost of vandalism and asset deterioration verified, the ministry is attending to the renovation of the infrastructure, he further assured.
Meanwhile, Venaani also raised a question about the Nkurenkuru garment factory, Ondangwa tannery and Manyeha Crocodile leather centre, all of which, he highlighted, remain inactive.
He asked for the root causes of these projects to fail and whether these projects were informed by market demand assessment and local value chain analysis.
“Honourable Venaani, both you and I were not party to the start-up of these projects, and thus even if we are told that the projects were influenced by market demands and value chain analysis, it will be difficult for us to verify,” Ithete responded.
Now that he is in charge, the buck stops with him and his ministry’s management, Ithete added.
The aim is to ensure the projects are productive and commercially viable and are managed on a profitable basis.
While financially boosting these projects, Ithete assured he will not allow them not to yield satisfactory results.
He ascertained the projects will show some progress by the end of the current financial year.