Windhoek: Finance Minister Ericah Shafudah has dismissed persistent complaints by State-owned enterprises (SOEs) about inadequate government funding, saying the focus should instead be on improving the efficient use of public resources. Shafudah made the remarks on Thursday at the Public Enterprises CEOs' Forum, where concerns over funding constraints and the reporting structures of SOEs were raised.

According to Namibia Press Agency, addressing calls for increased financial support, Shafudah said the notion of "adequate financial resources" was unrealistic, arguing that governments worldwide operate under finite budgets. "Limited financial resources, this one I do not know how it will get out of our vocabulary. There is no way one day one will say adequate financial resources. That word does not exist. What exists is that what you have, use it effectively and efficiently," she said. "We want to improve how we manage public financial resources because the money is there. It is there because if it was not there, you would not have asked contractors to give you 10%," she added, referring to alleged corruption in public procurement processes.

Shafudah was responding to concerns raised by Namibia University of Science and Technology Council Chairperson Leake Hangala, who identified financial constraints and the evolving governance framework as some of the major challenges facing State-owned enterprises. "One of the challenges which is always a present challenge is financial viability. Many public enterprises continue to face significant financial constraints that limit their ability to invest, grow and meet increasing service delivery demands," he said. He urged the government to strengthen long-term financing mechanisms, improve infrastructure investment, and create an enabling environment that allows SOEs to pursue innovative funding models and diversify their revenue streams.

In addition, Hangala noted that despite reforms undertaken over the years, the country's public enterprise governance architecture remains a work in progress. On governance reforms, Shafudah said the government has reflected on the evolution of the public enterprise oversight framework, from line ministries to a dedicated public enterprises ministry, which was later merged with the finance ministry. However, the minister said the current government now favours a hybrid model under which SOEs remain accountable to their respective line ministries, while governance standards, policies, and guidelines are centralised under a single umbrella.

Shafudah was referring to the Public Enterprises Governance Bill, currently before the National Assembly, which proposes centralising the governance of public enterprises under the Office of the Prime Minister. The Bill proposes placing overall oversight of public enterprises under the Office of the Prime Minister, transferring key responsibilities from line ministries and the Ministry of Finance, including powers over board appointments, executive management, and strategic direction.