The Communications Regulatory Authority of Namibia (Cran) has announced a substantial financial turnaround, reporting a total comprehensive surplus of N$32.8 million for the fiscal year.
This is a 293% increase compared to the previous year’s N$17 million loss.
This growth is largely attributed to increased spectrum revenue from a successful spectrum auction, and a positive adjustment in the provision for bad debts.
This information was revealed by Tulimevava Mufeti, chairperson of the Cran board.
“Revenue for the year increased by 13.7% to N$103.9 million from N$91.4 million in 2023. This growth was primarily due to the 700MHz – 800MHz spectrum auction,” she highlighted.
This dramatic financial improvement was contained in Cran’s 2024 annual report that was recently tabled in the National Assembly.
She said the company’s revenue sources include regulatory levies from telecommunications and broadcasting service licensees, spectrum fees, numbering plan revenues and type approval fees.
Cran is responsible for regulating Namibia’s telecommunications, broadcasting and postal services’ sectors.
The organisation plays a crucial role in promoting digital innovation for sustainable development, aligning its efforts with the United Nations Sustainable Development Goals (SDGs) and Namibia’s national development plans.
Regulatory levies are capped at 1.5% of operators’ turnover, accounting for 39.2% of telecommunications licensees and 5.9% of broadcasting service licensees.
Spectrum fees contributed 53% of total revenue, while type approval and numbering fees accounted for 0.5% and 1.1%, respectively.
As of 31 March 2024, Cran’s total assets amounted to N$277.9 million, marking an increase of N$29.6 million from the previous year.
This demonstrates their continued focus on financial health and stability, said Mufeti.
Despite these positive financial results, Cran faces several challenges. Cran CEO Emilia Nghikembua pointed out issues such as “the delay of amended national policies and legislation to enable Cran to respond to evolving technological evolution”.
She said there is limited budgetary provision for necessary interventions and ad hoc expenses.
In addition, time-consuming procurement processes delay the acquisition of goods and services.
A lack of process automation, non-proactive retention measures and high employee turnover complicate their efforts to fully execute strategic initiatives.
Nghikembua added that ongoing litigation by licensees and an unexpectedly high exchange rate have negatively affected certain budget lines.
Considering the rapid technological advancements, she emphasised the importance of regulatory adaptation.
She stated that in a world where technology urges the tides of change ever forward, it is of primary importance that regulations are current and relevant.
They should support national development goals and the provision of high-quality, accessible and affordable ICT for all Namibians.