IMELDA AMBONDO
Deputy Prime Minister and Minister of Industries, Mines and Energy, Natangue Ithete says the government has stepped in to address the underperformance and financial instability of the Namibia Industrial Development Agency (NIDA).
This is amid growing concerns over dormant projects, increasing debt, and non-accountability.
Addressing Parliament on Thursday, Ithete admitted that NIDA’s performance has not met expectations and that “many of the agro-processing and industrial initiatives have halted.”
He confirmed that several decisive interventions have already been taken to rectify the situation.
He said NIDA’s Board of Directors is legally responsible for ensuring all capital projects align with national development priorities and undergo comprehensive feasibility studies and cost-benefit analyses.
These studies assess market demand, financial sustainability, socio-economic impact, and potential returns.
Despite these structures, Ithete acknowledged past shortcomings and admitted that: “things have not gone the way both the government and the public expected.”
He assured the parliament that the government, as the main shareholder, had initiated corrective short-term measures to ensure alignment with NIDA’s mandate.
Ithete revealed that a new governance framework is being developed under the Office of the Prime Minister.
This framework will include mechanisms to hold state-owned enterprises like NIDA accountable for non-performance.
“Corrective actions already taken include a management overhaul at NIDA, capital acquisition efforts to clear historical debts, and the identification of joint venture partners to kickstart stalled projects. Under my watch, we will not allow non-performance to continue unabated without consequences,” he said firmly.
On the issue of performance evaluation, the Ithete said NIDA had lacked effective oversight.
“Straight talking, many of the agro-processing and industrial initiatives have halted,” he said.
He committed to working closely with NIDA’s interim management and its board to improve performance monitoring and project outcomes.
Addressing concerns about NIDA’s reported operational loss of N$102 million and rising liabilities, Ithete noted that no seed capital was provided when NIDA was established.
He said this lack of initial funding and operational inefficiencies as contributing factors to the agency’s current financial distress.
Responding to concerns about 30 dormant industrial and business units, Ithete clarified that not all NIDA projects are inactive. However, the revitalisation of non-operational ones will be prioritised once the business plan is capitalised and executed.
The process will include identifying commercially viable projects for continuation and removing unfeasible ones from the portfolio. “The capitalisation of NIDA will take place in phases,” the Minister explained, noting that much of the funding will come from NIDA’s own assets.
Venaani also raised concerns about the failed Nkurenkuru garment factory, Ondangwa tannery, and Manyeha Crocodile Leather Centre.
“What we are not going to allow to continue is for the Government to keep pumping funds into these projects, and yet they are not producing anything,” he said.
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