…Parastatals CEOs rake in millions while entities struggle with poor service delivery, weak governance and repeated losses
TIRI MASAWI
Board members and executives running state-owned enterprises (SOEs) in Namibia are among the country’s highest earners. This is despite ongoing concerns over poor corporate governance, weak service delivery, and recurring financial losses in several parastatals.
According to Ministry of Finance gazetted remuneration guidelines, Chief Executive Officers of SOEs earn between N$660 000 and N$2.5 million a year, depending on classification. SOEs are grouped into three tiers. Profit-making entities are generally placed in higher tiers, while most service-oriented parastatals fall under tier one and tier two.
The ministry says salary adjustments must be approved by the board in consultation with the relevant line minister. This is in line with the Public Enterprises Governance Act, 2019. It also states that annual inflation adjustments must consider affordability and whether the entity can remain a going concern.“Some CEOs and board members just do as they wish and give each other high salaries and sitting fees without following the Act,” a Ministry of Finance source said.
PRESIDENT VS SOE PAY
According to the April 2026 proclamation on Public Office Bearers remuneration structure, the President earns about N$2.182 million a year. The Vice President earns about N$1.897 million, while the Prime Minister takes home about N$1.65 million annually.
But some SOE executives are earning at the same level — and in some cases more.
CEOs who earn more than the President are found in several major State-owned enterprises. These include August 26 Holdings Company (Pty) Ltd, Meat Corporation of Namibia (Meatco), Namibia Ports Authority (Namport), Namibia Post, Namibia Power Corporation (NamPower), Namibia Water Corporation (NamWater), Roads Contractor Company (RCC), Telecom Namibia, TransNamib Holdings Ltd, and Mobile Telecommunications Company (MTC), among others.
Their salaries range from about N$1.8 million for lower-end executives to more than N$2.5 million for top earners, depending on classification and tier.
The structure also provides for non-executive directors in tier three SOEs, who earn about N$127 629 in annual board sitting fees.
TIER TWO AND MID-RANGE SOEs
Companies in tier two include the Agricultural Bank of Namibia, Development Bank of Namibia, Namibia Airports Company, Namibia Development Corporation, Namibia Institute of Pathology, Namibia Wildlife Resorts, Communications Regulatory Authority of Namibia, and the Fishery Observer Agency.
In this category, executive pay ranges from about N$762 000 for the lowest-paid executives to about N$1.6 million for the highest-paid.
The Ministry of Finance also sets non-executive directors’ fees in this tier at about N$86 000 per year.
The same remuneration structure places other SOEs in the average earning bracket. These include the Namibia Competition Commission, National Petroleum Corporation of Namibia, Motor Vehicle Accident Fund, Namibia Standards Institution, National Youth Service, Roads Authority, Social Security Commission, National Housing Enterprise, and the Roads Fund Administration.
At the bottom of the structure, tier one SOEs pay executives between N$450 000 and N$885 000 per year.
LIVING BEYOND MEANS
Corporate governance expert Ntelamo Ntelamo says many SOEs cannot justify the high salaries paid to executives.
He says most parastatals rely heavily on government support or public funding to survive.
“SOEs, generally, are expected to manage their finances prudently to be able to discharge their mandate primarily which means deploying most of their resources to achieve their objective,” he said.
He argues that executive pay must be linked to performance.
According to him, it makes no sense to pay high salaries in institutions that still depend on bailouts or loans to operate.
“What value do the executives bring to justify high salaries? When the institutions they govern plod along, saddled with overdrafts and other loans for human resources’ expenses. This is unsustainable by any standard,” he said.
Ntelamo says even where CEOs are highly qualified, high salaries should not come automatically at appointment.
He says performance must come first.
“Preferably, a high salary should not be upon hiring the CEO. It can only be after the CEO has proven themselves financial year after another,” he said.
He proposes a system where executives earn a base salary with a performance-based add-on paid only after results are measured and achieved.
“That is, a salary will be aligned to performance,” he said.
Public policy analyst Ndumba Kamwanya says SOE executives should not be paid like private-sector CEOs unless they deliver measurable public value.
He says in many cases, executive pay has become disconnected from performance.
“In many cases, remuneration has become disconnected from performance, which weakens accountability and public trust,” he said.
Kamwanya says it is difficult to justify high salaries in SOEs that continue to underperform, rely on government bailouts, accumulate debt, or fail to deliver reliable services.
He says the current system is not sustainable in a tight fiscal environment.
“Executive pay in public enterprises must reflect both financial outcomes and developmental impact, not simply position or political influence,” he said.
He proposes a performance-based model with clear targets.
“A reasonable structure is a moderate fixed salary combined with performance incentives tied to measurable indicators such as profitability, service delivery, operational efficiency, debt reduction, governance compliance, and customer satisfaction,” he said.
He adds that bonuses should not be paid if targets are not met.
Kamwanya also calls for stronger oversight of SOE remuneration.
He warns that boards should not be left alone to approve high salaries without results.
“Public enterprises exist to serve citizens and support economic development, so executive compensation must reflect public value and accountability, not only market comparisons,” he said.
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