Tenants across the country, making use of Namibia Industrial Development Agency (NIDA) facilities, have been urged to pay their dues to avoid utility and services suspensions. This is after it came to light that more than 1 000 active, legal and vacated tenants still owe NIDA close to N$90 million.
NIDA manages some 46 facilities throughout the country, including industrial and SME parks. According to the trade ministry under which NIDA operates, all facilities are functional, despite some that require minor renovations.
In a statement issued yesterday, the trade and industrialisation ministry noted that government recognises the vital role played by micro, small and medium enterprises (MSMEs) in the socio-economic development of the country.
“Hence, through its Sites and Premises Programme under the capital budget, the ministry continues honouring its mandate of providing a conducive business environment by developing multi-purpose SME building blocks, industrial parks and common facility centres,” the statement reads.
The statement continued that the ministry, through its implementing agency, NIDA, only suspends utilities to tenants or evicts tenants at these facilities over unpaid fees as a last resort. These steps, however, negatively impact the overall efficiency of the facility management.
“A total of 1 057 active, legal and vacated tenants owe NIDA an amount of N$89 million. The minister ordered NIDA to assign one staff member for each of the 14 regions to collect these debts over a period of 60 days (22 April to 22 June). This resulted in the eviction of non-complying tenants and the recruitment of new occupants as an opportunity to generate income for NIDA,” the statement from ministerial spokesperson Elijah Mukubonda, continued.
Mukubonda further noted that due to the trade minister’s intervention, the collection of N$4 million in outstanding fees was achieved, which is a meaningful amount for NIDA to address operational and financial challenges.
The ministry still encourages end users to negotiate mutually acceptable terms with NIDA to meet their obligations and enable the proprietor to render the required services to ease business operations.
“Agencies such as NIDA need urgent reforms and are key to fostering industrial development projects to create job opportunities and to grow the economy and create jobs for Namibians. The ministry remains committed to delivering on its mandate to enhance a conducive working environment for businesses in the country, specifically through programmes such as the Equipment Aid Scheme (EAS), Sustainable Development Goals Impact Facility (SDGIF) and Sites and Premises Programme (SPP) designed to assist MSMEs to withstand the current business climate,” Mukubonda stated.