Namibia’s state-owned enterprises (SOEs) are poised for a major governance shift following the passing of the Public Enterprises Governance Amendment Bill, 2025 by the National Assembly. The Bill, which now awaits gazetting, will place overall oversight of SOEs under the Office of the Prime Minister, marking a significant change in how these institutions are managed.
Under the new legislation, the Prime Minister will assume responsibility for the governance, management, and performance of all public enterprises, a role previously shared between the Ministry of Public Enterprises and the Ministry of Finance. Once enacted, this transfer of powers is expected to streamline decision-making and strengthen accountability within the public enterprise sector.
The Prime Minister will also be empowered to issue legally binding directives, approve board appointments and remuneration packages, and ensure compliance with government policies. Any directives issued and published in the Government Gazette will carry the full force of law.
According to the Bill, the reform aims to “transfer certain powers and functions relating to public enterprises from the Minister responsible for public enterprises and the Minister responsible for Finance to the Prime Minister and the relevant Minister.”
A new governance framework will also be introduced, giving sector-specific ministers greater oversight of SOEs within their portfolios. These ministers will represent the State’s ownership interest and will be responsible for approving integrated strategic business plans, annual budgets, and investment policies of their respective public enterprises.
To improve transparency in leadership appointments, the Bill establishes a recruitment committee to recommend board members, subject to Cabinet approval. Board members will serve three-year terms, renewable once, with further extensions permitted only when critical skills are scarce and upon consultation with the Prime Minister.
Additionally, the Bill introduces tighter regulations on the financial operations of commercial public enterprises, particularly concerning dividends and investments. Each enterprise will be required to submit a dividend policy for approval by the relevant minister, in consultation with the Minister of Finance and review by the Prime Minister before final endorsement.
