Justicia Shipena
Finance minister Ericah Shafudah says amendments to the Public Enterprises Governance Act (PEGA) will soon be tabled in Parliament.
She said the amendments will shift oversight functions from central government to line ministries.
“This process has advanced very, very well, and soon we are going to see the tabling of the amended public enterprises governance bill in parliament,” Shafudah said on Monday during a cabinet briefing at the Government Information Centre.
PEGA, passed in 2019, provides rules for the governance, restructuring, and monitoring of state-owned enterprises.
It was initially administered by the Ministry of Public Enterprises, which was dissolved in 2022.
Oversight was then moved to the Ministry of Finance and Public Enterprises. Earlier this year, the government confirmed that 18 commercial enterprises and eight extra-budgetary entities would now fall under line ministries.
In April, then presidential spokesperson Alfredo Hengari told New Era that all state-owned enterprises, previously under the finance ministry, would report directly to their respective ministries.
The change affects 26 SOEs. Namibia has 77 public enterprises in total.
Last year, the Namibia Chamber of Commerce and Industry (NCCI) said compliance with PEGA was improving, though some enterprises initially struggled.
Upon taking office, President Nandi-Ndaitwah directed the attorney general, minister of justice, and minister of finance to make the necessary legal changes to fully implement the new arrangement.
During her cabinet briefing session, Shafudah warned that revenue performance remains uncertain.
“I have indicated that the year is not that easy, especially from the revenue side, having cognisance of the fact that the mining sector was estimated to perform relatively slowly, especially the diamond sector, and with that, the revenue was already projected to be on the slow side,” she said.
She said mid-year budget consultations with ministries have taken place, with outcomes to be presented to cabinet and parliament in October.
She said the amendment appropriation bill, with possible tax proposals, will also be tabled.
On debt, Shafudah said Namibia is ready to redeem its eurobond on 29 October 2025.
“So I pause here a little bit because this is a major achievement… Watch this space; 29 October will be a memorable day in the history of the government of Namibia,” she said.
The US$750 million Eurobond, issued in 2011 under president Hifikepunye Pohamba, funded projects such as the National Housing Enterprise housing programme.
Former finance minister Iipumbu Shiimi said in 2024 that part of the Southern African Customs Union (SACU) receipts had been set aside to cover two-thirds of the eurobond’s value through a sinking fund.
In September 2024, Simonis Storm Securities reported that the government planned to cut outstanding bonds, which then stood at N$6.77 billion.
Furthermore, Shafudah defended the Namibia Revenue Agency’s (NamRA) tax enforcement approach toward small and medium enterprises while warning large companies against non-compliance.
“I have also told NamRA to be hard on the companies that are not paying tax, those big ones. And they know themselves. And I’m not threatening anyone. I’m only saying, those big companies that have not been complying with the tax laws, we are on you,” Shafudah said.
She stressed that small businesses must also meet their tax obligations but noted that NamRA’s goal is not to intimidate entrepreneurs.
“If you think we are too harsh on you, shout because we are not here to create enemies but to create partnerships so that at the end, whatever is collected is for the benefit of this country,” she said.
