Ester Mbathera
Financial sector and governance experts expressed concerns about the structure of the Namibia Investment Promotion and Development Board (NIPDB).
This follows the announcement by the NIPDB that it is transitioning to a new governance structure.
Adrianus Vugs, a financial sector expert, argued that the creation of the NIPDB outside of formal government structures was flawed.
He questioned why the institution reports directly to the president instead of to the Ministry of Industrialization and Trade (MIT), which he says raised concerns about its governance and transparency.
“Why should it still report to the president? And why should the chairperson and the CEO be appointed by the president? Why are the chairperson and CEO of Nampower not appointed by the president? The point here is, again, simple – we are diverging from proper governance and proper government structures,” he said.
Vugs said the formalisation of the NIPDB is unjustified.
He added that its current structure could create confusion within the government and negatively impact the country’s development.
“Does the performance of the NIPDB warrant the institution being formalized? Please show me concrete results – so far all we have are unfulfilled promises,” he said.
The late President Hage Geingob established the NIPDB in 2020 as part of his second-term government strategy.
At a time when the nation was dealing with economic stagnation, unemployment, and poverty, the organization’s task was to promote investments and stimulate economic growth.
Escher Luanda, a governance and ethics expert, echoed Vugs’ concerns and suggested a pathway for reform.
“Adrianus, you could not have put it better. This is the problem that we create when we make unjustifiable exceptions,” he said.
Luanda suggested treating the NIPDB similarly to any other public enterprise.
“The following will resolve this issue and put it to bed. Establish a board through a competitive recruitment process. The Minister of Finance and Public Enterprise, in collaboration with the Ministry of Industrialisation and Trade, has proven that they can do it well. The board should appoint the CEO, subject to the Cabinet’s endorsement. The line minister should be the minister of industrialization and trade. Treat this entity like any other public enterprise,” he said.
He also called for the removal of the executive chairperson position, citing recent reforms in the Central Procurement Board of Namibia as an example of good governance.
“If the other day we were brave enough to do away with an executive chairperson and deputy chairperson at the procurement board out of aspirations to observe good governance, then we must do the needful and run NIPDB like another public enterprise. While the intentions by the immediate past president (MHSRIEP) may have been well-intentioned, that does not cure the mischief of having an executive chairperson, which we can all admit is not a good thing,” said Luanda.
Last week, the NIPDB announced that its revised structure will include a board of independent non-executive members, with the CEO reporting to the board and holding an additional reporting mandate to the President through a Technical Investment Committee.
According to the statement, it will be composed of members representing various offices, ministries, and agencies (OMAs) and is expected to drive service delivery as well as fast-track the conversion of investments, amongst others.
“In order to give effect to the aforementioned resolution, the amended articles of association will be registered, and the process of appointing the new board of directors will commence with immediate effect. The mandate and legitimacy of the NIPDB are further set to be legislated by Parliament in the Namibia Investment Promotion and Facilitation Bill, which is currently in the drafting process,” reads the statement.
Elijah Mukubonda, the spokesperson of MIT, confirmed that the ministry has been involved in the development of the Namibia Investment Promotion and Facilitation Bill, which is set to legislate the NIPDB’s mandate.
“Yes, it’s within the mandate of the Ministry of Industrialisation and Trade to develop policies and legislation pertaining to investment in the Republic of Namibia. As the Ministry, MIT has been spearheading the promotion of the NIPFB (bill) legislation.
He further explained that the new NIPDB structure deals with the organisation’s governance matters.
Mukubonda stated that the ministry still oversees the Micro, Small, and Medium-Sized Enterprises policy, while the NIPDB is in charge of operationalizing and implementing the NIPFB (bill) for business enterprises.
“The new structure doesn’t alter the MSME policy. The responsibility of the MSME policy is within the department of industrial development. Therefore, commerce within its configuration will manage the standard operating procedures of consumer protection matters and business ethics,” said Mukubonda.
