Acting minister of Public Enterprises, Iipumbu Shiimi has dismissed talk of a potential TransNamibia liquidation saying that there is no truth in the allegations as portrayed in the media.
Iipumbu emphasised that the State maintains the view that TransNamib is a strategic entity in the country’s logistics hub aspirations and will do everything in its powers to strengthen TransNamib to ensure that it delivers on its mandate in a cost effective manner.
“TransNamib’s main area of business remains vital in providing and promoting transport services in Namibia and as per the national development objectives entrenched in Vision 2030, NDP5 and the Harambee Prosperity Plan II. Namibia has rail infrastructure with a total length of two thousand, six hundred and eighty-seven kilometers (2,687 km) across the country.
“The State is the owner of this rail infrastructure while TransNamib is the sole operator. Namibia’s rail infrastructure is connected to South Africa, with opportunities to further extend the railway line and connect to other countries in the SADC Region. Government deems TransNamib to be the appropriate vehicle for Namibia serve as the logistics hub connecting the broader SADC region,” Shiimi said in a statement last week.
In 2019, the Ministry of Public Enterprises approved the TransNamib Integrated Strategic Business Plan 2018/19- 2023/24, which rebranded TransNamib in terms of its corporate mandate and structure to become more effective and efficient.
“Despite the economic headwinds, a constrained fiscal environment as well as the challenges posed by the COVID-19 pandemic, government has remained steadfast in its support for TransNamib to ensure its continued operation and financial sustainability.
“Over the past few years specifically, the government has provided strong governance and oversight as evidenced in the appointment of competent Boards of Directors, approved the Integrated Strategic Business Plan of TransNamib in 2019, which was the 1st ISBP approved by the Ministry, provided budget support of about N$90 million to TransNamib in the past two (2) years to enable the entity to, among others, improve its fleet of locomotives and increase operational efficiencies, made a capital injection of N$150 million into TransNamib to acquire 100% shareholding in the Swakopmund Hotel & Entertainment Centre, written off N$410 million of debt owed by TransNamib to improve the company’s balance sheet, and provided the required assistance as a shareholder to enable TransNamib to secure a loan of more than N$2.5 billion from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA),” Shiimi said.