The Namibia Industrial Development Agency (Nida) is considering a joint venture to co-finance its business unit.
The company, which is a commercial state-owned enterprise, released its first financial report in six years earlier this year, covering the financial years 2018/2019 to 2023/2024, posting a loss of N$102 million.
The agency’s consultant chief financial officer, Julius Nghikevali, suggests that a joint venture could be one of three strategies the company can consider to improve its performance.
“The first option is a transition into a stand-alone subsidiary, which will eventually be housed under Nida Holdings Limited,” says Nghikevali.
The second suggestion is to have the business unit raising its own funding directly, with such funds ring-fenced for its exclusive use.
“The third option envisions Nida partnering with a technical partner or operator through a joint venture to co-finance the business unit,” says Nghikevali.
The agency’s last profitable year was 2020, when it recorded a profit of N$33 million.
In the period covered in its financial reports, the agency made N$31 million from agribusiness sales, N$44 million from property portfolio rentals and N$44 million from dividends and interest income.
Total costs increased from N$181 million to N$231 million in 2024, while income also increased by 20% over the period to N$165 million – excluding government grants, which increased by 1%, from N$137 million in 2020 to N$139 million.
Nida chief executive Richwell Lukonga says the company will focus on three industrial infrastructure opportunities moving forward.
The first is prime industrial land for investment and development in Windhoek, Walvis Bay and Okahandja.
“The second is the Special Economic Zones to promote local investment, and attract foreign direct investment to positively impact our national industrialisation initiatives and fully exploit the opportunities presented by the African Continental Free Trade Area,” said Lukonga.
Additionally, the agency will be looking at strategic and prime land holdings for the investment and development of industrial zones regionally in Angola, the Democratic Republic of Congo and Congo-Brazzaville, which Lukonga says will be financed through technical partnerships, exploring joint venture and shareholding opportunities, securing partner or investor financing, and co-financing with interested stakeholders
Nida board chairperson Sebulon Kankondi says, since the establishment of the agency, it has not fulfilled its role of being at the forefront of industrial development.
He said the agency’s new strategy will focus on growth, adaptation and strategic repositioning.
“In order to place Nida in the driver’s seat of the industrialisation agenda, collaboration and partnership is of paramount importance. And we believe that financial institutions are both well positioned and have the capacity to walk the journey with Nida,”says Kankondi.
Nida was created by the merger of the Namibia Development Corporation and the former Offshore Development Company.
Established by the Namibia Industrial Develo
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
