NIDA Reports Operating Losses but Outlines Plans for Future Growth
The Namibia Industrial Development Agency (NIDA) has recently unveiled its annual report for the financial year 2024, shedding light on both its financial standing and strategic roadmap for the future. Despite reporting an operating loss of N2 million, the agency remains committed to driving Namibia’s industrial development forward.
One of the notable highlights of the report is a substantial 28% increase in total annual expenditure, which amounted to N1 million. Contrastingly, NIDA’s total income also grew by 20% to reach N5 million. While the increase in revenue is promising, it unfortunately couldn’t offset the rising expenses, resulting in significant operating losses.
Julius Nghikevali, the Executive Consultant for the CFO Portfolio at NIDA, shared insights into the agency’s financial health. He noted a decline in the current ratio, which dropped from 79% in 2019 to 50% in 2024. This aspect of financial management deserves close attention, especially given that liabilities have more than doubled to N8 million. On a positive note, NIDA has managed to maintain a low gearing ratio of 22%.
In terms of asset management, NIDA demonstrated impressive growth, with assets increasing by 30% over the past six years to reach N.37 billion. However, Nghikevali expressed some unease regarding the returns generated from these assets, which have stood at a modest 11% for both return on assets and return on equity.
During the launch of the report, the Minister of Finance and Public Enterprises, Iipumbu Shiimi, praised NIDA’s finance team for their thoroughness in compiling the financial statements. Shiimi highlighted the importance of transparency in showcasing how funds are allocated and utilized, marking this as a transformative step in NIDA’s journey.
Despite the current challenges, the agency is optimistic about its asset portfolio, which has been valued at an impressive N billion following a recent evaluation. Nghikevali pointed out the importance of improving the cost-to-income ratio, as expenses have historically surpassed revenues. He also emphasized the agency’s plan to leverage its diverse property portfolio for enhanced financial outcomes.
NIDA, established in 2018, plays a crucial role in advancing Namibia’s industrialization agenda, aligning its efforts with key national strategies like the Growth at Home Strategy and the Harambee Prosperity Plan.
As NIDA pivots towards the future, it faces both opportunities and hurdles. The agency is gearing up for its Integrated Strategic Business Plan (ISBP) for 2025/26 to 2029/30, aiming to turn its financial fortunes around while contributing significantly to Namibia’s economic development.
Stay tuned for further updates on NIDA’s progress as it strives to achieve financial sustainability and contribute to the growth of Namibia’s industrial sector.
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