The Namibian government has introduced a slew of new state-owned entities that will participate in state tenders, competing with the private sector. This move comes after radical amendments to the Public Procurement Act were published, which almost double procurement thresholds in most cases. The amendments list 75 new state-owned entities that will be awarded state tenders without open public bids.
The new state-owned entities span various sectors, including investment, property and township development, power distribution, security, transport infrastructure, fisheries, food supply, general trade, ICT, and telecommunications. These entities will be awarded government tenders under the 'execution by public entity' without public bidding. Many of these companies are not registered on the Business and Intellectual Property Authority, while some have been deregistered.
Some of the new state-owned entities are 'shelf companies', mostly used to bypass the waiting period required to register a startup corporate entity and meet minimum age requirements often demanded for government tenders. The companies have cryptic names, such as 'BV Investment Six Hundred & Forty-Five (Pty) Ltd' and 'Gazania Investments One Hundred and Thirty-Six (Pty) Ltd', with no transparency in their main line of business or core competencies.
The amendments to the Public Procurement Act were quietly published in Government Gazette 8989 after being signed off by finance minister Ericah Shafudah. The new state-owned entities include subsidiaries of the defence ministry's August 26 group of companies, which have received several state construction contracts in the past.
The number of state-owned entities listed in the amended regulations has almost doubled from 79 in 2017 to 154 in 2026. The entities are categorized into three categories, with 15 under Category 1, 29 under Category 2, and 103 under Category 3. Seven public entities have also been accorded 'high-value' status, marginalizing the Central Procurement Board's role in providing transparency.
The list of new state-owned entities includes companies not previously known to be state-owned, such as Bridgehead Group Holdings and Capricorn Power Supply. The National Petroleum Corporation of Namibia has been split into two entities, while the Meat Corporation of Namibia now has three subsidiaries. Some previous state-owned entities, such as Air Namibia and NAMFISA, are no longer listed.
The new procurement thresholds mean less involvement of the Central Procurement Board of Namibia in public procurement. Government Gazette 8989 lists new procurement thresholds for public entities below which they may conduct their own procurement without having to go through the Central Procurement Board.
Key points
- The Namibian government has introduced 75 new state-owned entities to participate in state tenders.
- The new state-owned entities will be awarded government tenders without open public bids.
- The amendments to the Public Procurement Act have raised concerns over transparency and accountability.
