…. Ministry, presidency to direct where NIPDB officials should travel
TIRI MASAWI
The government has cut the budget of the Namibia Investment Promotion and Development Board (NIPDB) from N$150.1 million in 2025/26 to N$94 million in 2026/27 after shifting the entity to the Ministry of International Relations and Trade.
The move also ends the operational autonomy the company previously enjoyed when it was placed under the Office of the President.
Despite the reduced budget and structural changes, NIPDB spokesperson Catherine Shipushu last week told Namibia Business Review that the board remains committed to its mandate.
“The NIPDB is committed to its mandate of supporting the government’s efforts to, amongst others, drive the country’s diversification strategy and inclusive private sector-led economic growth,” she said.
The NIPDB was created in 2021 by former president Hage Geingob, with its chief executive reporting directly to the presidency. Under the new arrangement by President Netumbo Nandi-Ndaitwah, the institution now falls under the authority of International Relations and Trade minister Selma Ashipala-Musavyi.
Namibia Business Review understands that the ministry, together with the Presidency, will now determine the board’s strategic direction and approve international travel by its officials.
The tighter controls mark a significant shift from the board’s earlier operations, when it faced criticism over spending on subsistence and travel allowances (S&T).
Shipushu said the board recognises the financial pressures facing the government.
“We are also cognisant that the government has a massive responsibility of addressing complex socioeconomic challenges, with finite resources at its disposal,” she said. She added that “these realities compel us as a public entity to think differently, be innovative and strategic about where we focus our efforts.”
Shipushu said the board will align its priorities with those of its line ministry.
“In consultation with our line ministry, the Ministry of International Relations and Trade, we will identify and focus on key initiatives that advance our mandate and deliver tangible value to the economy in line with our national priorities,” she said.
She reiterated that the board now reports through its governance structures to the ministry.
“In terms of operational oversight, the NIPDB is an entity under the Ministry of International Relations and Trade, to which we are fully accountable through our governance board and in line with the provisions of the Public Enterprises Governance Act,” Shipushu said.
Shipushu added that commercial counsellors posted at Namibia’s foreign missions will also fall under the ministry.
“The ministry is responsible for the appointment and deployment of commercial counsellors in accordance with established government policies and procedures,” she said.
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Before the structural changes, the NIPDB had been accused of having a penchant for splashing public funds, a claim it denies.
The Namibian reported last year that the NIPDB spent about N$2.1 million on travel allowances for officials in 2024, while undertaking more than 80 foreign trips in just 18 months as part of its investment promotion activities.
The Namibian further reported that the investment board participated in various expos across the globe, including five in North America, one in South America, five in Europe, two in the Middle East, nine in Asia, and 13 in Africa.
In 2021, the Namibian government spent over N$20 million to establish a presence at the Dubai Expo, including sending 19 civil servants from various agencies.
These officials spent six months in Dubai, the United Arab Emirates (UAE), receiving salaries and allowances. The expo took place from 1 October 2021 to 31 March 2022.
A delegation of two NIPDB executives arrived at the Dubai Expo without an interpreter, making them unable to engage with potential investors.
The NIPDB defended the costs, but members of parliament, including Nico Smit of the Popular Democratic Movement (PDM), criticised the expenditure.
Smit questioned the return on the N$20 million investment.
“Surely civil servants can promote Namibia to the Middle East more effectively by visiting potential investor countries rather than spending six months away from their duties. What evidence is there that this extended stay – which resembles a glorified holiday – will benefit Namibia, especially with ministries like agriculture, international relations, information and communication, mines and energy, and even the Namibia Broadcasting Corporation (NBC) participating in the expo?” he said at the time.
Namibian Sun reported that the NIPDB in 2021 defended its decision to send two officials to the UAE for a conference they were not accredited to attend.
In 2023, the NIPDB attended an expo in Brazil, which was described as a disaster after the board allegedly failed to organise an interpreter.
Shipushu last year defended the NIPDB’s track record, saying the investment pipeline facilitated by the NIPDB grew by 9% to N$175 billion during the 2024 financial year.
“The total value of projects that became operational in Namibia stood at N$2.9 billion, while a further N$24 billion worth of projects was recorded in deployed capital.
She said it should be noted that not all investors who engage the NIPDB end up in the pipeline.
“Some of these investors find local partners with sufficient capacity on the ground to facilitate their activities in the country,” Shipushu said.
Public policy analyst Ndumba Kamwanya said placing the investment board under the ministry could improve coordination between economic diplomacy and investment promotion.
“Investment promotion is closely linked to economic diplomacy, trade relations, and how a country positions itself internationally,” he said.
“Locating the institution within that ministry could strengthen coordination between Namibia’s diplomatic missions and efforts to attract investors.”
However, Kamwanya said expectations around the board’s performance have been high since its creation.
“Since its establishment under the presidency during the time of Hage Geingob, expectations were very high, but the tangible results in terms of new investment inflows and job-creating projects have been limited,” he said.
He added that the institutional shift should be seen as an opportunity to refocus the country’s investment promotion efforts.
“The real test will be whether the institution becomes more practical, more focused, and more effective in actually bringing investors into the country,” he said.
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