The administration has been ramping up efforts to help the government and its entities realise their full potential. State-owned enterprises (SOEs) have received a number of treasury bail-outs and support over the years with little or no strategic oversight. Now they will need to rigorously account for and deliver productive outcomes. This administration is particularly […] The post Netumbonomics: SOEs, Government and Productive Outcomes appeared first on The Namibian .
The administration has been ramping up efforts to help the government and its entities realise their full potential.
State-owned enterprises (SOEs) have received a number of treasury bail-outs and support over the years with little or no strategic oversight. Now they will need to rigorously account for and deliver productive outcomes.
This administration is particularly betting on mining and agriculture, two sectors that have shown that then when they operate in a conducive environment, they have the opportunity to boost state revenue.
In general, there are those who feel the government should play a more active role and yet others who feel it should intrude less in the economy if we are to resolve our challenges.
This topic draws me back to a hawkish comment made by the late president Hage Geingob when he was prime minister.
Referring to a budget statement after a good period of economic growth, he wondered if it would have been possible if the government had not stepped in with policy, fiscal and procurement interventions to bolster the status quo.
What a moment it must have been, Unfortunately, some of us were very young at that time and were debating who was better: The Dogg or Gazza?
INTERVENTIONS
We can also learn from the work of a former senior South African banker, Gaby Magomola, who made a strong case for government intervention in South Africa’s economy.
Magomola makes beautiful relational mention of classical theory pioneers such as Jean Baptiste, John Mill and Adam Smith who, in their own spaces, initiated theories on economics, economic growth, supply demand, the link between population growth and economic growth and economies of scale.
It is important to mention that these theories came at a time when capitalism was at its peak and there was an overall rejection of government in business.
I fully support that the government must have a role to play by way of intervention and through SOEs.
The economy cannot simply be left in the hands of the private sector, which rarely has any social responsibility other than corporate social investment.
SOEs, which facilitate productive outcomes, are important in the sense that the government gets a piece of the pie.
We have also seen instances where the government simply cannot get it right with SOEs, and this, technically, is where the private sector usually comes in and fills the gap.
Chairperson of the Social Research Foundation and scenario planner, Frans Cronje, recently said the private sector enters the fray to provide that service where the government fails.
Air Namibia is one such case. To keep Namibia’s aviation sector afloat, the private sector took over the space.
ENGAGEMENT
Fortunately or unfortunately, the private sector often preys on government weaknesses.
There should now be a clarion call for SOEs to engage where there is low-hanging fruit. Where can executive muscle be used to bulldoze and work in results.
It simply cannot be business as usual.
This approach should be for the benefit of all and seek to share resources, responsibilities and synergies between the state and private sector.
It needs to effectively optimise the strength all parties bring to the table, while rigorously holding each party accountable.
To help overcome the burden of inefficiencies, SOEs have been created to extend the government’s ability to deliver services.
Throughout various administrations, interventions have been largely made to social sectors – through social grants, drought relief, social support.
FRAMEWORKS
Even though the gross domestic product has increased from about N$7 billion in 1990 to about N$260 billion in 2025/26; the economy is still far from solving the challenges of unemployment, inequality and poverty.
The government cannot, at this point, pump billions into SOEs that have zero productive outcomes.
Encouragingly, SOEs command billions in non-banking assets and those assets must start getting to work.
Kudos to minister Ericah Shafudah, who will seek to introduce a more streamlined procurement framework that will give SOEs breathing space.
In the final analysis, a lot is riding on the ability of our SOEs to step forward and do what is required of them.
Structurally, they must have plans that produce productive outcomes, and must ensure that every cent is used to fulfil their mandate.
– Dylan Mukoroli is passionate about sustainable community development and development finance.
The post Netumbonomics: SOEs, Government and Productive Outcomes appeared first on The Namibian.
