CHAMWE KAIRA
Mobile Telecommunications Limited (MTC) and the Bank of Namibia have been granted exemption following amendments to the Public Procurement Regulations of 2017, published on 4 August 2026.
The amendments replaced Regulations 2 and 3, as well as Annexures 1 and 2 of the regulations.
“There are two entities that have applied and were granted the exemption being Bank of Namibia and MTC,” Phineas Nsundano, Head of Procurement Policy Unit (PPU) in the ministry of finance told Observer Money.
MTC said it has been granted an exemption from the application of section 3 of the Public Procurement Act, allowing the listed telecommunications company to continue conducting procurement under its board-approved policy and internal control framework.
The exemption was granted by the Minister of Finance in terms of section 4(2) of the Public Procurement Act of 2015, following concerns raised by MTC about the potential impact of procurement requirements on its commercial operations, competitiveness and ability to attract private capital.
MTC said the minister had confirmed on 6 October 2026 that the company remained a public entity under the Act because the government is its majority shareholder.
The minister clarified that MTC’s listing on the Namibia Securities Exchange (NSX), as well as any exemption from classification as a state-owned enterprise under the Public Enterprises Governance Act of 2019, did not change its status as a public entity for purposes of the procurement law.
MTC said the minister’s determination followed amendments to the Public Procurement Regulations of 2017, published on 4 August 2026 under Government Notice No. 259 of 2026 in Government Gazette No. 8989.
The amendments replaced Regulations 2 and 3, as well as Annexures 1 and 2 of the regulations. Under the revised Annexure 1, MTC was listed under Category 1, Item 13.
Following the publication, MTC engaged the Ministry of Finance over the implications of the amendments, particularly in relation to its obligations as a company listed on the NSX.
The company raised concerns that strict application of certain procurement requirements could affect its commercial operations, competitiveness, ability to attract private investment and broader investor confidence.
In her determination, the minister explained that MTC’s obligation to comply with the Public Procurement Act arose directly from the provisions of the legislation and not from its inclusion in the amended regulations.
The amendments, she said, merely classified MTC as a Category 1 public entity for purposes of determining the applicable procurement thresholds.
Despite confirming the company’s status as a public entity, the minister granted the specific exemption after considering MTC’s submission and operational circumstances.
The exemption does not change MTC’s underlying classification as a public entity under the Public Procurement Act.
The minister also reserved the right to review, amend or withdraw the exemption if the circumstances under which it was granted change or if considerations of public interest require such action.
MTC said its procurement activities would continue to be governed by its board-approved procurement policy and internal control framework.
The company will also remain subject to its obligations under the Companies Act of 2004 and the NSX Listings Requirements.
