The privatisation of State-owned enterprises is increasingly being presented as a solution to the challenges these entities face, particularly in Namibia. 

Proponents often argue that poor management and inefficiencies justify transferring State assets to private hands. 

However, this perspective overlooks the broader and often detrimental consequences that history and global examples have demonstrated.

While it is true that some SOEs have encountered inefficiencies, this alone does not justify privatisation. 

Instead, these issues should be addressed through reform and better governance. 

Privatisation frequently shifts the focus from public welfare to profit, leading to the erosion of essential services vital for nation-building and social welfare.

For example, the privatisation of Zambia’s copper mines – a once pivotal part of the nation’s economy – resulted in job losses, reduced government revenues and the disintegration of local communities. 

In Nigeria, the privatisation of the power sector led to frequent outages and increased electricity costs. 

These examples highlight the risks of entrusting essential services to private entities driven by profit rather than the public interest.

In Europe, the privatisation of British Rail in the 1990s led to fragmented services, higher ticket prices and a decline in service quality. 

Consequently, taxpayers ended up subsidising private companies, illustrating how privatisation can often lead to worse outcomes for the public.

Reflecting on the post-colonial era in Africa, SOEs have played a critical role in providing services that the private sector typically overlooks. 

Imagine if water supplies were privatised in Namibia, a scenario some are advocating. 

Water, a vital resource, could become unaffordable for many, restricting access, especially for marginalised communities. 

This is a risk we cannot afford to take.

Namibia’s Founding President Sam Nujoma recognised these dangers earlier on. 

In the 1990s, he famously rejected the World Bank’s structural adjustment programmes, which included the privatisation of State assets. 

These programmes caused widespread economic and social chaos in the countries that adopted them.

Nujoma powerfully stated, “We are not going to sell our country to the highest bidder. We fought for independence to reclaim our resources – not to hand them over to foreign interests”.

Former Namibian finance minister Calle Schlettwein has also been a vocal opponent of selling off government assets and SOEs. 

In 2024, during a panel discussion at the World Water Forum in Bali, he stressed the dangers of privatising essential services like water provision, noting, “Water must be given, and what you pay is secondary. If shared prosperity is our goal, privatisation will only bring inequality”.

He also criticised the private sector’s handling of green schemes and abattoirs in Namibia, stating, “We tried to outsource some green schemes, but six months down the line, no production has happened. The private sector is failing us, and we cannot rely on them”.

Former South African president Nelson Mandela also spoke against the risks of privatisation, particularly for essential services. 

In 1997, he remarked, “Privatisation is often advocated as a cure for inefficiency, but what is privatised are the assets, while the liabilities remain public. The poor end up paying the price”.

These leaders’ words resonate with the experiences of countries worldwide. 

The period of SOEs, especially in post-colonial Africa, has been defined by their role in ensuring access to essential services like water, electricity and transportation for all citizens. 

Their achievements have been crucial for social and economic development, and privatisation threatens to undo these gains.

Imagine a future where Namibia’s water supply is controlled by private investors, where the primary motive is profit – not public welfare. 

The consequences could be disastrous, leading to inequality in access and affordability.

Therefore, the privatisation of SOEs is not a viable solution for Namibia. 

Instead, we must focus on reforming and improving these entities to serve the public better. 

As we look to the future, let us heed the warnings of those who have witnessed the consequences of privatisation first-hand, and remain steadfast in protecting our national assets.

*Lot Ndamanomhata is a graduate of Public Management, Journalism and Communication. This article reflects his views, and is written entirely in his personal capacity.