NIDA owed N$89m by SME tenants

June 28, 2023

The Namibia Industrial Development Agency’s (NIDA) debtors book currently stands at N$89 million as a result of non-compliant tenants from its approximately 46 facilities, including industrial and SME parks, an official has revealed.

According to the Ministry of Industrialisation and Trade’s Chief Information Officer Elijah Mukubonda, a total of 1,057 active, legal and vacated tenants owe NIDA an amount of N$89 million in arrears.

He said NIDA only suspends utilities to tenants or evicts tenants at these facilities over unpaid fees, as a last resort but these steps, however, negatively impact the overall efficiency of the facility management.  

"The Minister ordered NIDA to assign one staff member for each of the 14 regions to collect these debts over a period of 60 days (22 April to 22 June). This resulted in the eviction of non-complying tenants and the recruitment of new occupants as an opportunity to generate income for NIDA," he said.

He added that the Minister’s intervention resulted in the collection of N$4 million thus far, which is a meaningful amount for NIDA to address its operation and financial challenges.

"The Ministry still encourages end users to negotiate with NIDA mutually acceptable terms to meet their obligations and enable the proprietor to render the required services to ease business operations," he urged.

Mukubonda said agencies such as NIDA need urgent reforms and are key to fostering industrial development projects to create job opportunities, grow the economy and create jobs for Namibians.

"The Ministry remains committed to deliver on its mandate to enhance a conducive working environment for businesses in the country, specifically through programmes such as the Equipment Aid Scheme (EAS), Sustainable Development Goals Impact Facility (SDGIF) and Sites and Premises Programme (SPP) designed to assist MSMEs to withstand the current business climate," he further noted.

This comes as the government recognises the vital role that micro, small and medium enterprises (MSMEs) play in the socioeconomic development of Namibia.

Hence, through its Sites and Premises Programme under the capital budget, the Ministry continues honouring its mandate of providing a conducive business environment by developing multi-purpose SME building blocks, industrial parks and common facility centres. 






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Last modified on Thursday, 29 June 2023 15:38

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