{"id":40119,"date":"2023-02-25T17:09:02","date_gmt":"2023-02-25T17:09:02","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts"},"modified":"2023-02-25T17:20:32","modified_gmt":"2023-02-25T17:20:32","slug":"shiimi-cuts-soe-bailouts","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts","title":{"rendered":"Shiimi cuts SOE bailouts"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>TREASURY has massively cut bailouts to state-owned enterprises (SOEs) for the 2023\/24 fiscal year to just N$1 billion, and entities like TransNamib whose chief executive officer resigned yesterday, will receive no allocation.<\/p>\n

This bill last year was at N$2,3 billion and was stretched over 22 enterprises which are now under the control of Iipumbu Shiimi as the minister of finance and public enterprises.<\/p>\n

Although Shiimi has cut transfers, he is helping them behind closed doors as these public enterprises will use the state to guarantee debt of an extra N$2 billion during the coming fiscal year, pushing government guarantees to N$12,7 billion.<\/p>\n

These guarantees will also be extended to TransNamib for the funding of rolling stock and the acquisition of new locomotives.<\/p>\n

Shiimi on Wednesday in parliament told the public that transfers to commercial public enterprises have been reduced significantly.<\/p>\n

Transfers to commercial entities, for example, was slashed to only N$425,4 million in the 2023\/24 fiscal year.<\/p>\n

Last year, the World Bank Group and the International Finance Corporation led an onslaught against public enterprises, saying they were bloated.<\/p>\n

According to the two international lenders, Namibian public enterprises were frustrating the private sector, preventing it from leading growth and creating more jobs in Namibia, because it is disadvantaged as it is competing with public enterprises which are constantly bailed out, inefficient, loss making and monopolistic.<\/p>\n

The two global lenders said Namibia’s public enterprises and the private sector in Namibia are operating on an uneven playing field, because they are also not held to the same standards of accountability and compliance to the law.<\/p>\n

In his budget statement, Shiimi said he has reduced allocations to public enterprises from over N$2 billion per annum in past years.<\/p>\n

Those that faced the cut-off include TransNamib, which was bailed out with N$225 million last year, as well as Agribusdev, which was formed to ensure that adequate food is produced by green schemes for local consumption.<\/p>\n

The Roads Authority was also not allocated a cent.<\/p>\n

The Agro-Marketing and Trade Agency’s allocation was cut from N$110 million to N$72 million.<\/p>\n

There have been reports about fraud at this agency.<\/p>\n

The Namibia Airports Company also had its budget allocation slashed to N$47 million from N$62 million in 2022\/23, while Namibia Wildlife Resorts’ budget was slashed by over N$130 million to N$50 million.<\/p>\n

The Namibia Tourism Board’s budget was increased by N$10 000 to N$3,1 million.<\/p>\n

This is despite Shiimi yesterday saying sectors with potential for employment creation, such as agriculture, tourism, and services needed support.<\/p>\n

Though not much has happened at the Zambezi WaterFront \u2013 it secured N$4,4 million.<\/p>\n

Termed as wasteful by many analysts, the Roads Contractor Company (RCC) was allocated N$55 million \u2013 over N$150 million over the next three years.<\/p>\n

The alleged racially troubled Meat Corporation of Namibia received an allocation of N$66,7 million and may just be able to stand up to expected competition from Savannah Beef, which is yet to be operationalised.<\/p>\n

Epangelo Mining, which is a company set up to hold the government’s shareholding in mineral finds, was allocated N$12 million.<\/p>\n

The Namibia Estate Agency Board and the Namibia Standards Institute were allocated N$1,6 million and N$31,7 million, respectively, while the Walvis Bay Corridor Group was allocated N$5,1 million.<\/p>\n

The Namibia Broadcasting Corporation’s budget was cut to N$310 million, while the Namibia Press Agency and state-owned newspaper New Era received N$27 million and N$27,5 million, respectively.<\/p>\n

The National Theatre of Namibia will receive N$8,1 million, flat when compared to the last fiscal year \u2013 despite Shiimi citing filming and television to be areas of focus in the coming fiscal years.<\/p>\n

The Development Bank of Namibia and the Agriculture Bank of Namibia all got an increase in their budget allocations, which are now at N$49,6 million and N$99,3 million, respectively.<\/p>\n

Shiimi said the allocations to the two banks will support ongoing interventions in the agriculture sector and the implementation of small and medium enterprise financing strategies and youth entrepreneurship financing activities.<\/p>\n

The Business and Intellectual Property Authority was allocated N$1 million, while the Namibian Competition Commission got a N$24 million allocation.<\/p>\n

The NaCC has over the years complained about limited financial resources to correctly apply the competition law.<\/p>\n

ANALYSTS<\/p>\n

Commenting on the allocations, Simonis Storm Securities analyst Theo Klein says the ongoing public enterprise reforms and the initiative to compile a public fixed asset register could see improved performance among state-owned enterprises.<\/p>\n

\u201cThe asset register can assist the government in selling unused or unproductive assets and so benefit non-tax revenues,\u201d he says.<\/p>\n

Klein says transformation plans are being developed for the 22 commercial public entities with the aim of making them profitable, and should be sped up to reduce dependency on the budget for bailouts.<\/p>\n

\u201cHowever, these reforms are unlikely to benefit public revenue by means of CPEs paying dividends to the government in the 2023\/24 financial year as it takes time to achieve targets.<\/p>\n

\u201cIndeed, these reforms are only expected to lead to an increase in non-tax revenues (through dividends) from the 2024\/25 financial year onwards,\u201d he says.<\/p>\n

Cirrus Capital analysts say transfers to public enterprises took a positive shift in the budget, but questioned allocations to the NBC and the RCC, which, they said was \u201can unjustifiable drain on public resources\u201d.<\/p>\n

Namibia’s public enterprises are reportedly valued at over N$30 billion in net assets.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. TREASURY has massively cut bailouts to state-owned enterprises (SOEs) for the 2023\/24 fiscal year to just N$1 billion, and entities like TransNamib whose chief executive officer resigned yesterday, will receive no allocation. This bill last year was at N$2,3 billion and was stretched over 22 enterprises which are now under the control […]<\/p>\n","protected":false},"author":84,"featured_media":40117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[234,236,233],"class_list":["post-40119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nShiimi cuts SOE bailouts - Namibia<\/title>\n<meta name=\"description\" content=\"TREASURY has massively cut bailouts to state-owned enterprises (SOEs) for the 2023\/24 fiscal year to just N$1 billion, a ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shiimi cuts SOE bailouts\" \/>\n<meta property=\"og:description\" content=\"TREASURY has massively cut bailouts to state-owned enterprises (SOEs) for the 2023\/24 fiscal year to just N$1 billion, a ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-25T17:09:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-25T17:20:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/02\/postQueueImg_1677332392.61.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Shiimi cuts SOE bailouts\",\"datePublished\":\"2023-02-25T17:09:02+00:00\",\"dateModified\":\"2023-02-25T17:20:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts\"},\"wordCount\":894,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/02\/postQueueImg_1677332392.61.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-cuts-soe-bailouts\",\"name\":\"Shiimi cuts SOE bailouts - 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