Budget 2026/27: Namibia state-owned enterprises face funding cuts as fiscal consolidation hits subsidies

The government plans to reduce funding to state-owned enterprises (SOEs) during the 2026/27 financial year, but several entities will still receive subsidies and capital support.

Presenting the national budget for 2026/27 in the National Assembly on Thursday, minister of finance Ericah Shafudah said fiscal consolidation and financial prudence were necessary in the context of high public debt and high interest payments.

According to the government’s budget for 2026/27, it spent N$1.3 billion in subsidies and capital transfers to public enterprises in the 2025/26 financial year. For the next financial year, spending of N$615.7 million on subsidies and capital transfers to public enterprises is envisaged.

In her budget speech, Shafudah prioritised two public enterprises: the National Housing Enterprise (NHE) and the Road Fund Administration (RFA).

The NHE will receive N$1.5 billion, Shafudah said in her budget speech, not in the form of government transfers but rather loan financing over several years. The RFA will not receive transfers either, but fuel levy revenues will be allocated to it.

“This will finance the construction and rehabilitation of priority road infrastructure, ensuring sustained investment in transport networks while preserving fiscal discipline,” Shafudah said.

Additionally, she said SOEs and the private sector should support the country’s development agenda, especially in the context of a reduced development budget.

Several state-owned enterprises that previously received government support will receive no transfers from the government in the next financial year, according to the government’s expenditure projections for 2026/27.

These include TransNamib, which was allocated N$220 million in the 2025/26 financial year, the Agricultural Bank of Namibia (Agribank), Epangelo Mining Company, the Roads Contractor Company, the Zambezi Waterfront, the Agro-Marketing and Trade Agency and the Lüderitz Waterfront.

Even for companies still receiving transfers, the 2026/27 budget shows subsidies and capital transfers to public enterprises are projected to decline over the medium term.

The Namibian Broadcasting Corporation (NBC) remains the largest single recipient, with N$300 million to be allocated to the public broadcaster in 2026/27. This is a reduction of 17% from a revised allocation of N$361.6 million in 2025/26.

State media enterprises New Era Publication Corporation (NEPC) and the Namibia Press Agency (Nampa) will have reduced allocations of N$22.5 million each in 2026/27, compared to N$27.7 million allocated to Nampa and N$27.5 million allocated to NEPC in the previous financial year.

An allocation of N$112 million is made to the Meat Corporation of Namibia (Meatco) for the servicing of a loan facility with the Development Bank of Namibia.

The Namibia Investment Promotion and Development Board is to be allocated N$94 million under the trade promotions programme of the Ministry of International Relations and Trade.

The Namibia Tourism Board is allocated N$3.2 million, and the Walvis Bay Corridor Group receives N$5 million.

The estimates of expenditure and revenue also reflect continued funding for regulatory and statutory bodies under various votes. These include allocations to entities such as the Namibian Competition Commission (N$43 million), the Namibia Standards Institute (N$52.4 million), the Namibia Civil Aviation Authority (N$47 million) and the Electricity Control Board (N$40 million).

In addition to direct transfers, government guarantees to SOEs are estimated to remain flat at N$7.6 billion in 2026/27.

“Public enterprises represent a significant source of fiscal risk, primarily through potential failures to contribute to government revenue and the need for increased spending via subsidies or bailouts,” a budget document states.

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