Ithete goes to war with NIDA free riders
Operational inefficiencies and other factors have led to financial challenges
Industrialisation, mines and energy minister Natangwe Ithete says his ministry will no longer tolerate non-performance at the Namibia Industrial Development Agency (NIDA), warning that under his watch, inaction will have consequences.
“If you don’t perform, we will do the needful,” he said in parliament last week, responding to questions from Popular Democratic Movement (PDM) leader McHenry Venaani.
Venaani had asked what mechanisms exist to hold project implementers accountable for poor performance.
In a response read on his behalf by deputy minister Gaudentia Kröhne, Ithete said that state-owned enterprises (SOEs) such as NIDA had reverted to their line ministries after the dissolution of the Ministry of Public Enterprises in March this year.
“In this regard, the Office of the Prime Minister is developing a new governance framework that will include mechanisms to hold SOEs accountable for non-performance,” he said.
“In the meantime, we have already taken corrective steps – including changes to NIDA’s management, assistance to secure capital to address historical debts, and efforts to find joint venture partners to kick-start industrial projects.”
Ithete added that his ministry is reviewing NIDA’s entire project portfolio “to streamline operations and ensure the agency focuses on its core mandate of industrialisation – establishing viable factories and value-adding initiatives that create jobs for Namibians”.
Financial woes
Venaani noted that NIDA recently reported an operational loss of N$102 million and growing liabilities.
He asked what steps were being taken to stabilise the agency’s finances.
Ithete said the reported losses were still being verified, but pointed out that NIDA had not received seed capital when it was established.
“Operational inefficiencies and other factors have led to financial challenges. To address this, the ministries of industrialisation and finance are working with NIDA to get its Integrated Business. Plan approved, to clear historical debts – particularly from its sites and premises programme – and to ensure the agency is adequately capitalised to move towards profitability,” he said.
Dormant projects
Venaani further questioned government’s plan to rehabilitate or repurpose 30 dormant industrial and business units, and whether funds had been allocated for their revitalisation in the 2025/26 fiscal year.
“Please allow me to correct the public perception that all NIDA projects are dormant. Yes, some are, but there are also active ones,” Ithete said.
He said once the Integrated Business Plan is approved and capitalised, viable projects will resume while commercially unfeasible ones will be phased out.
“The capitalisation of NIDA will take place in phases – beginning with funds to settle historical debts – with most resources expected to come from the agency’s own asset streams.”
Leadership turmoil
The agency has faced turbulence in recent months, punctuated by the departure of then interim CEO Richwell Lukonga – who left the company on Ithete’s directive.
Various issues surfaced after a high-level meeting between Ithete, the NIDA board and Lukonga, during which the minister ordered the suspension of all strategic decisions and directed the board to end Lukonga’s secondment.
Lukonga, who is also chief operating officer at the Namibia Investment Promotion and Development Board (NIPDB), had been seconded to NIDA in March 2024 for 12 months with the endorsement of then finance minister Ipumbu Shiimi.
Long-serving executive Philip Namundjebo has since been appointed acting CEO.
- [email protected]
“If you don’t perform, we will do the needful,” he said in parliament last week, responding to questions from Popular Democratic Movement (PDM) leader McHenry Venaani.
Venaani had asked what mechanisms exist to hold project implementers accountable for poor performance.
In a response read on his behalf by deputy minister Gaudentia Kröhne, Ithete said that state-owned enterprises (SOEs) such as NIDA had reverted to their line ministries after the dissolution of the Ministry of Public Enterprises in March this year.
“In this regard, the Office of the Prime Minister is developing a new governance framework that will include mechanisms to hold SOEs accountable for non-performance,” he said.
“In the meantime, we have already taken corrective steps – including changes to NIDA’s management, assistance to secure capital to address historical debts, and efforts to find joint venture partners to kick-start industrial projects.”
Ithete added that his ministry is reviewing NIDA’s entire project portfolio “to streamline operations and ensure the agency focuses on its core mandate of industrialisation – establishing viable factories and value-adding initiatives that create jobs for Namibians”.
Financial woes
Venaani noted that NIDA recently reported an operational loss of N$102 million and growing liabilities.
He asked what steps were being taken to stabilise the agency’s finances.
Ithete said the reported losses were still being verified, but pointed out that NIDA had not received seed capital when it was established.
“Operational inefficiencies and other factors have led to financial challenges. To address this, the ministries of industrialisation and finance are working with NIDA to get its Integrated Business. Plan approved, to clear historical debts – particularly from its sites and premises programme – and to ensure the agency is adequately capitalised to move towards profitability,” he said.
Dormant projects
Venaani further questioned government’s plan to rehabilitate or repurpose 30 dormant industrial and business units, and whether funds had been allocated for their revitalisation in the 2025/26 fiscal year.
“Please allow me to correct the public perception that all NIDA projects are dormant. Yes, some are, but there are also active ones,” Ithete said.
He said once the Integrated Business Plan is approved and capitalised, viable projects will resume while commercially unfeasible ones will be phased out.
“The capitalisation of NIDA will take place in phases – beginning with funds to settle historical debts – with most resources expected to come from the agency’s own asset streams.”
Leadership turmoil
The agency has faced turbulence in recent months, punctuated by the departure of then interim CEO Richwell Lukonga – who left the company on Ithete’s directive.
Various issues surfaced after a high-level meeting between Ithete, the NIDA board and Lukonga, during which the minister ordered the suspension of all strategic decisions and directed the board to end Lukonga’s secondment.
Lukonga, who is also chief operating officer at the Namibia Investment Promotion and Development Board (NIPDB), had been seconded to NIDA in March 2024 for 12 months with the endorsement of then finance minister Ipumbu Shiimi.
Long-serving executive Philip Namundjebo has since been appointed acting CEO.
- [email protected]
Comments
Namibian Sun
No comments have been left on this article