This project, grant-funded by AFD for a maximum total amount of EUR 500k (+/- NAD 9,3mn) aims at improving the administration of commercial public enterprises in Namibia. Through consulting services and trainings, it will seek to support the MPE in its role of supervising Commercial Public Enterprises (CPEs), in line with the recently operationalization of the Public Enterprises Governance Act 2019 (Act No. 1 of 2019) [PEGA]. The AFD grant will facilitate the provision of technical assistance to carry out its mandated professional shareholder responsibility.
In his speech, the French Ambassador to Namibia, H.E. Sébastien Minot mentioned that “France and Namibia both rely on a strong public sector and pay particular attention to the good governance and financial performances of their respective public enterprises”. He added that these entities have a key role to play in the implementation of development policies by providing access to basic services, improving the living conditions of the population and contributing to the economy through job creation and revenues.
According to the promulgation of the Public Enterprises Governance Act 2019 (Act No. 1 of 2019), PEGA is mandated to position Namibia’s key Public Enterprises to play their meaningful role in the country’s developmental agenda. In other words it is now the responsibility of MPE to make provision for the efficient governance of public enterprises and the monitoring of their performance; to make provision for the restructuring of public enterprises; to provide for the powers and functions of the Minister of Public Enterprises; and to make provision for incidental matters. Thereupon, the new legislation will need consertered efforts to meaningful carry-out its mandate.
In this context, the project will develop and design tools to facilitate the financial and organizational supervision of the 22 Commercial Public Enterprise placed under the directive of Honorable Leon Jooste, as Minister of Public Enterprise. This will also assist in improving efficiency of management and direction for a selection of enterprises, who will benefit directly from efficiency audits.
H.E. Sébastien Minot also mentioned that AFD was one of the more active and experienced development banks in this sector, managing a portfolio of 165 public enterprises worldwide and encouraging their financial autonomy through “non-sovereing loans”. He encouraged all public entities to get in contact with AFD’s office in Windhoek to find out more about the support and expertise it can bring.