Ester Mbathera
The Namibia Industrial Development Agency (NIDA) has reported that its cost-to-income ratio remains high, with expenses surpassing income.
The agency’s executive consultant and chief financial officer, Julius Nghikevali, revealed this during the release of NIDA’s six-year abridged annual report for the financial years 2018/2019 to 2023/2024, released on Monday in Windhoek.
“That is a picture that any business would need to change and that is a key focus area for us,” he said.
Despite the challenges, NIDA has achieved a 30% growth in total assets from 2019 to 2024, primarily due to investment properties.
“The investment property aspect is an interesting one at NIDA because of the fact that the proper investment property number and quantities have not been valued on a fair value basis. We are just looking at the cost, the cost model, so from the book value from when these assets were acquired, there was still a 73% increase in value from about N$150 million to N$789 million at the end of 2024 or the 2024 financial period,” he said.
NIDA liabilities grew from N$140 million to N$248 million over the six years.
“However, the gearing has remained low, meaning that liabilities compared to the equity have remained generally low. And I think that that is also commendable,” he said.
In 2024, NIDA engaged independent valuators to reassess its property portfolio, revealing an asset base of N$3 billion, up from the previous book value of N$868 million.
“We will still need assistance. This is the asset base that we have. However, it’s not cash. We need cash. We need to be able to leverage off that asset base. However, to get into that position and to get the confidence of the market, we still need assistance,” he said.
The shareholders’ equity also rose by 20%, reaching N$1.12 billion. Nghikevali described this as “a commendable picture for any organisation.”
Richwell Lukonga, the interim chief executive of NIDA, promised to transform the agency within the next three years.
He explained that N$1 billion of the asset base is the value of land that the agency owns in Walvis Bay.
Lukonga said the agency also believes it can turn around the agrobusiness.
“Naute (dam) has a lot of potential. Namibia is known to be a high-value fruit country. We believe if we expand our potential there with strategic partners, we will be able to turn around the agency. In the cattle range with a very good plant, we believe we can also do that around, ” he said.
He added that NIDA can play a strategic role in supporting SMEs through industrial parks and positioning itself in emerging sectors.
“We believe we can play strategically in the new sectors. NIDA has been absent for quite some time and we need to position ourselves and make sure that we are proactive,” he said.
The agency’s board chairperson Sebulon Kankondi, added that the release of the financial report is not just a procedural requirement.
“It is a milestone that signifies accountability, transparency and a commitment to our mandate of driving Namibia’s industrialisation and, more importantly, to position NIDA in the driving seat of our country’s efforts towards industrialisation,” he said.
The release of the annual report also marked the formal conclusion of the Offshore Development Company (ODC) and Namibia Development Corporation (NDC), which were merged in 2015 to form NIDA. Former employees of NDC and ODC were transferred to NIDA in June 2024.
The next step, according to Kankindi, is to make sure that NIDA grants these employees the new conditions of service.
“While this transition presented integration challenges, it also provided an opportunity to consolidate resources, refine our strategic direction, and enhance efficiency,” said Kankondi.
Minister of finance, Shiimi Iipumbu applauded the NIDA for their effectiveness in compiling the annual report.
“The fact that you now have an annual report with financial statements, that now says this is how we have spent the money this is where we are in terms of our financial ratios that’s a whole mark of transformation and success, this is a very good starting point,” he said.
The deputy minister of Industrialisation, Verna Sinimbo applauded the agency for sticking to its mandate and leading the industrialisation agenda.
“I herewith express our pride in NIDA for driving Namibia’s industrialization agenda, and ensuring the goal of industrializing Namibia has materialized to achieve the Harambee vision. Through their efforts to create employment opportunities, NIDA plays a key role in the fight against poverty in Namibia,” she said.
