EDITORIAL: Government must not elbow away the private sector

The concerns raised by local businesses that government is increasingly doing business with itself, at the expense of the private sector, should not be dismissed as mere complaints from disgruntled contractors. They deserve serious attention.

At the heart of the debate is a legitimate question. What is the appropriate balance between empowering state-owned entities to deliver public services and ensuring that the private sector remains an active partner in economic growth and job creation?

Government may well have sound reasons for assigning certain functions to public entities. If this is part of a coherent policy aimed at improving efficiency, reducing costs or curbing corruption, then it should explain that policy clearly.

What is fuelling anxiety is the growing perception that state-owned entities are steadily replacing private companies in areas traditionally served through competitive procurement.

Recent examples include NamPost taking over the distribution of social grants from Epupa Investment Technology; Social Security Commission (SSC) assuming responsibility for administering the Public Service Employees Medical Aid Scheme (PSEMAS); Roads Contractor Company (RCC) being tasked with constructing sports facilities across the country without competitive bidding; and reports that the Namibia Training Authority (NTA) could take over the school feeding programme.

Whether these decisions are individually justified is almost secondary. Collectively, they create a perception that government is becoming both the client and the contractor. That perception matters.

A vibrant private sector is indispensable to economic growth. It creates jobs, drives innovation, pays taxes and broadens the country's productive capacity. That said, the private sector is not without fault.

For years, some companies have treated government procurement as a feeding trough rather than a commercial opportunity. Collusion, inflated pricing, poor workmanship and corruption have cost taxpayers billions. Those abuses needed decisive intervention. But correcting one imbalance should not create another.