The Namibia Airports Company (NAC) recorded a profit after tax of N$40 million for the 2023/24 financial year, demonstrating shared commitment to the company’s strategic direction.
This profit is an increase to the N$19 million recorded in the previous financial year, the company said at its recent Annual General Meeting (AGM).
The NAC is currently operating at approximately 92% pre-Covid levels in terms of overall passenger volumes.
The AGM was attended by Titus Ndove, the Executive Director of the Ministry of Finance and Public Enterprises, who represented the Minister, the Deputy Minister of Works and Transport Veikko Nekundi, who represented the Minister, Louise Shixwameni, the Deputy Executive Director of the Ministry of Finance and Public Enterprises, the NAC Board of Directors, the NAC Chief Executive Officer, Bisey /Uirab, NAC Management, and various representatives from the Ministry of Works and Transport and the Ministry of Finance and Public Enterprises. The recently concluded AGM marks a significant achievement: that the NAC is now up-to-date and fully compliant with the submission of its audited Annual Financial Statements (AFS).
Reflecting on the organisation’s achievements over the previous year, the CEO Bisey /Uirab remarked that “NAC demonstrated resilience and determination, navigating challenges while forging a strategic direction.”. The financial and performance advancements attained signifies the company’s collective dedication to ethical and sustainable growth. Among these advancements are:
- Hosea Kutako International Airport and Walvis Bay International Airport attained long-term operating certificates in terms of the Namibian Civil Aviation Regulatory requirements, valid until 5 December 2025.
- Andimba Toivo Ya Toivo Airport was issued with a three-year long-term license, valid until 1 July 2027.
- Improvement of passenger volumes for the financial year-to-date period April 2024 to June 2024 were 277 636 (249 322: 2023/24, 308 652: 2019/20).
- The ICAO USOAP-CMA audit took place from 06-18 March 2024. Namibia, as a state, attained an overall effective implementation (EI) score of 72.31% compared to 57.39% achieved in the last ICAO audit in 2016.
- Receipt of Cabinet Action letter for appointment of consultants for the construction of Terminal 3 at Hosea Kutako International Airport.
- The NAC hosted the AVIADEV Africa Conference in June 2024. Over 400 delegates participated. (https://www.futureneeradvisors.com/index.html)
- Legal cases have been reduced from thirteen (13) to seven (7) active cases.
The following new routes were introduced/to be introduced:
- Discover Airlines (Lufthansa Group): Plans to introduce a new route out of Munich to Windhoek, set for 1 April 2025. Three flights per week.
- Air Botswana’s inaugural route, Windhoek and Gaborone, will commence in October 2024. Maun-WHK and Kasane-WHK commence in November 2024. All routes will be three times per week.
- FlySafair will commence twice-weekly operations on 22 October 2024 from Cape Town to Windhoek.
NAC Board of Directors Chairperson, Dr. Leake Hangala, adds that the company has maintained stability amidst the evolving local and international challenges. The NAC Board underwent a performance evaluation for the 2022/2023 financial year and attained an overall score of 3,9 against the industry best practice target of 4,5.
“Let me thank our shareholders for giving the NAC Board the mandate to lead, counsel, and steer the company in carrying out its mission and vision. The NAC Board is unwavering in its dedication to maintaining and promoting the best practices in corporate governance throughout the whole organization,” Dr. Hangala states.
“The reports presented by the NAC provide testament to the journey travelled in the fast five years, the directors, management, and entire staff collective efforts. NAC is one of the few public enterprises who have caught up with the backlog and could be used as an example to help other SOEs,” states Shixwameni.
Nekundi and Ndove echoed the same sentiments, stating, “This achievement is commendable, especially receiving continued unclarified audit opinions. The NAC should maintain this principle and level of improved performance.”.
Ndove further cautioned the NAC to be vigilant of the increased trend of staff costs vs. revenue growth. This should be closely managed. The NAC is committed to improving its airport infrastructure to support the country’s national development initiatives and harness the natural resources brought about by the recent oil and gas discovery together with the Green Hydrogen initiatives. The envisaged airport infrastructure developments include the country’s national development initiatives and harnessing the natural resources brought about by the recent oil and gas discovery. Along with the Green Hydrogen initiatives, the NAC has committed to improving its airport infrastructure. among others: (a) Establishment of a solar PV plant at the HKIA, Eros, and Andimba Toivo ya Toivo airports at the cost of N$9,5 million; (b) Develop master plans for all eight (8) airports in the new financial year; (c) furthering discussions with local stakeholders on the establishment of the aviation training school; (d) the finalisation of the transfer of land to NAC for the construction of new terminal buildings at Katima Mulilo, Rundu, and Lüderitz airports and upgrading of the parking management system at HKIA, Walvis Bay Airport, and Andimba Toivo Ya Toivo Airport.
Other significant focus areas include the review of the current Integrated Strategic Business Plan (ISPB) and development of a new 5-year ISBP inclusive of current and future national and global initiatives; full implementation of the Performance Management System (PMS); implementation of the succession plan for executives and strategic staff close to retirement to ensure business continuity; and continued improvement of maintenance and repairs at all the airports to ensure optimal functioning of the infrastructure.