Nida fears collapse over N$3-billion asset transfer order

The Namibia Industrial Development Agency (Nida) is fighting to retain control of its billion-dollar property portfolio after the government instructed the parastatal to transfer 154 of its assets, including farms and complexes worth about N$3 billion.

Nida’s property portfolio spans 14 regions and includes commercial, industrial and developmental assets.

A total of 148 properties were valued at N$2.98 billion as of 15 January 2025, with a net book value of about N$820 million, including 73 semi-commercial, 13 commercial, 34 social and 28 residential properties.

The directive, which allegedly comes from the Cabinet, forms part of a wider restructuring of state assets and has raised fears about job losses and the agency’s existence.

The Namibian understands that at a meeting held on 18 March, Nida was asked by the Ministry of Industries, Mines and Energy to identify properties that do not align with its mandate for the transfer to the Ministry of Works and Transport.

After Nida provided the list, the mines ministry told the agency that all 154 properties will be transferred to the Public Asset Management Agency, which is being created under the works ministry.

After the directive, Nida wrote back to the ministry that the move could affect the company’s operations.

Documents obtained from the mines ministry show that despite agreeing to the request, Nida warned that the properties remain central to its survival.

“These properties have been Nida’s backbone in funding the agency’s key daily operations such as the payment of salaries, taxes, investments in projects… and other costs,” Nida acting chief executive Phillip Namundjebo wrote to mines and energy executive director Moses Pakote on 25 March.

Namundjebo says the agency had “identified +97 properties to surrender” and “+57 properties… to be retained”.

“These initiatives fall under the energy ministry’s small and medium enterprises policy, which aims to create accessible trading and factory spaces,” Namundjebo writes.

The creation of Nida was not smooth.

Two entities, Namibia Development Corporation, and Offshore Development Company were merged under the Nida Act of 2016, although the transfer of all assets, rights, liabilities and obligations has to date not been completed.

Nida’s properties include residential, commercial, semi-commercial, social, industrial and vacant land.

It says industrial and vacant land are “crucial” to implementing its mandate and unlocking opportunities in sectors such as oil and gas, as well as supporting Special Economic Zone legislation.

Other issues include lease agreements, arrears debt, pending litigation, ownership complexities, zoning disputes, encroachment and illegal occupation. Some properties also require major maintenance and remodelling.

Namundjebo last week told The Namibian that the process is at an assessment and consultation stage between the relevant stakeholders.

“This includes verification of assets, their status, and alignment considerations. As such, no final decisions have been taken, and timelines will depend on the outcome of these ongoing engagements,” he said.

Works and transport minister Veikko Nekundi yesterday said: “I advise you to engage with the minister of mines on the matter.”

Asked to which department the Nida assets will be transferred, Nekundi said: “Currently all properties are with works and transport and the Public Asset Management Agency is within the works ministry.”

Pakote last week said there is an ongoing process aimed at aligning Nida’s operations with its core mandate of industrialisation, including the establishment and management of industrial infrastructure.

“At this stage, no final decision has been taken regarding the transfer of any property,” he said.

Sources say the government informed Nida that it has struggled to manage its properties and should instead focus on its role as the state’s business arm, holding shares in companies.

Nida, established in 2018, was created to advance Namibia’s industrialisation agenda in line with national policies and development strategies.

Secretary to the Cabinet Emilia Mkusa says she is not aware of any decision regarding the matter.

THE PROPERTIES

Kavango Cattle Ranch (KCR) and Mangetti West, located in Registration Division “B” in the Oshikoto and Kavango regions, span 223 894 hectares and form part of Nida’s key agricultural portfolio valued at N$76.8 million, which includes buildings, infrastructure and the lease agreement running until 2030.

The cattle herd is valued at N$84.13 million.

The Naute Irrigation Farm (Naute Date Project) near Keetmanshoop has a market value of N$233.5 million, a forced sale value of N$151 million, and a replacement value of N$161 million.

The Eersbegin farm located in the Kunene region is valued at N$11 million, forced sale value of N$6.74 million, and replacement value of N$11.88 million.

The Musese Green Scheme in the Kavango West region is valued at N$19 million, while the Shitemo Green Scheme in the Kavango East region stands at N$9.34 million.

JOINT VENTURES

Information from documents including Nida’s business assessment and recommendation for a sustainable business model – turn around strategy of 2025 indicate an agency that is struggling but with a lot of shares.

In the joint venture portfolio, the Coca Cola Namibia Bottling Company has paid annual dividends of more than N$30 million between 2018 and 2023, peaking at N$41.7 million in 2019 to Nida.

Coca Cola is valued between N$2 billion and N$5 billion, placing Nida’s 24.68% shareholding at between N$490 million and N$1.23 billion, according to Nida’s business assessment document.

Pupkewitz Motors (North) is valued between N$100 million and N$120 million, with Nida’s stake worth up to N$48 million.

However, some investments are under pressure. Aqualekker Farming Namibia is loss-making and funded by other shareholders. Naute Kristall Distillery recorded losses in 2022 and 2023, with negative net equity of N$430 000, despite revenue below N$2 million and a gross profit margin of about 70%.

Silnam Solutions has seen declining revenue and reduced information communication technology contracts. Al-Dhahra & NDC Date Palm Development recorded negative equity of N$10 million in 2020, while Nida still has 1 200 hectares available at Naute for potential expansion and partnership growth. Namchar Namibia remains non-operational but is viewed as a potential biomass opportunity.

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