The Government of Namibia has amended the Public Procurement Regulations of 2017, granting exemptions to Mobile Telecommunications Limited (MTC) and the Bank of Namibia. The amendments, published on 4 August 2026, replaced Regulations 2 and 3, as well as Annexures 1 and 2 of the regulations. This change allows MTC and the Bank of Namibia to operate under different procurement guidelines.
According to Phineas Nsundano, Head of Procurement Policy Unit in the ministry of finance, MTC and the Bank of Namibia are the two entities that have applied for and been granted the exemption. MTC was granted an exemption from the application of section 3 of the Public Procurement Act, enabling the 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. The minister's decision followed concerns raised by MTC about the potential impact of procurement requirements on its commercial operations, competitiveness, and ability to attract private capital. MTC had expressed worries that strict application of certain procurement requirements could affect its commercial operations and competitiveness.
The Minister of Finance confirmed on 6 October 2026 that MTC 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, 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.
The amendments to the Public Procurement Regulations of 2017 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. This exemption does not change MTC's underlying classification as a public entity under the Public Procurement Act.
The minister 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's procurement activities will 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.
The exemption granted to MTC and the Bank of Namibia allows them to manage their procurement processes according to their own policies and frameworks. This move is expected to enhance their commercial operations and competitiveness. The exemptions are specific to each entity and are based on their individual circumstances and submissions to the Ministry of Finance.
Key points
- MTC and the Bank of Namibia have been granted exemptions from the Public Procurement Act following amendments to the regulations.
- The exemptions allow MTC and the Bank of Namibia to conduct procurement under their board-approved policies and internal control frameworks.
- The minister reserved the right to review, amend or withdraw the exemptions if circumstances change or if public interest requires it.
