Development agency continues to ‘waste’ taxpayer money

From owing municipalities significant debts, to abandoning projects and missing investment opportunities, the Namibia Industrial Development Agency (Nida) has yet to prove its worth after years of draining taxpayers’ money.

A report from the Parliamentary Standing Committee on Economics and Public Administration reveals a pattern of failures by Nida in fulfilling its mandate.

According to the report, Nida owes the Keetmanshoop Municipality N$2.4 million for electricity and N$1 million for water.
“Nida has not made any attempt to make payment in the last four years. As a result, the municipality took the decision to cut off water and electricity,” the report states.

This has led to the complete closure of the !Homs Ai community market project at Keetmanshoop.

Additionally, Nida owes the Otjiwarongo Municipality N$150 000 for water.

“SME parks at Otjiwarongo and Grootfontein have experienced water disconnections due to Nida’s non-payment, causing businesses to either close or struggle to survive,” notes the committee.

The report further notes that the model used by Nida to manage projects and properties for the benefit of communities is neither efficient nor effective.

“The negligence in the operation and management of government development projects and properties is causing great wastage of taxpayers’ money,” the committee says.

Among the projects left to waste is the Nkurenkuru Garment Factory, which has had no activity since 2023. Machinery lies idle, and there are no clear operational plans.

Another example is the Manjeha Crocodile Farm project in the Zambezi region, which remains abandoned despite a perimeter fence being erected. The site has suffered significant vandalism and shows no signs of operations.

In the Otjozondjupa region, a biomass project has been left idle due to water disconnections and ongoing security issues.

“It cannot become operational until Nida settles its water debt,” the committee said.

Beyond debts and abandoned projects, the institution has also been accused of stalling potential investment opportunities through what the committee described as “delay tactics”.

“The Oshana region negotiated with an investor from Italy who was ready to produce shoes locally.

Everything was on track, but the investor withdrew due to Nida’s delay tactics,” the committee says.

This raises questions about how Nida intends to achieve its ambitious goal of creating 35 000 jobs over the next five years – one of the key objectives outlined in its newly developed Turnaround Integrated Strategic Business Plan (ISBP) for the 2025/26 to 2029/30 financial years.

Just last week, Nida chief executive Richwell Lukonga said the agency has taken several steps to make this plan a reality.

“The ISBP is a defining moment for Nida, as it lays out the agency’s trajectory over the next five years,” he said.

The committee has recommended the immediate reintegration of Nida into the Ministry of Industrial Relations and Trade, citing issues with the current dual oversight structure.

“The current governance model has contributed to lapses in supervision and accountability. Nida should fall under one supervisory body to ensure proper oversight,” the committee notes.

The agency’s last profitable year was 2020. For the 2024 financial year, Nida recorded a loss of N$102 million.

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