Namibia Wildlife Resorts’ (NWR) new strategic business plan will not be funded by Treasury, the Windhoek Observer has established.
This comes as Finance Minister, Calle Schlettwein and Public Enterprises Minister, Leon Jooste, have made it clear that no commercial State-owned enterprise should expect a bailout from Government this year.
NWR recently announced that it is interested in partnering with suitable investors in joint ventures, under a new business plan, which has already been approved by Cabinet.
NWR will retain a 51 percent stake in the proposed joint ventures.
“The current plan does not require Treasury funding. The existing joint ventures have worked very well for NWR as far as my information goes. The joint venture operations were loss-making resorts and they now generate a positive income to NWR with very low risks,” Jooste told the Windhoek Observer.
Jooste said the joint ventures can take many different forms depending on each unique situation and not necessarily a ‘one size fits all’ situation.
NWR joint ventures with private companies that are currently functional include Dan Viljoen (Sun Karros) and Von Bach (Tungeni Investments).
NWR Manager of Corporate Communications, Mufaro Nesongano, said the strategic business plan comes after calls by Government for State-owned enterprises to devise innovative ways of seeking funding for their growth.
He said Government has indicated that it has other important priorities to focus on with the limited funds it has.
“Based on this, we saw an opportunity to invite potential investors with experience and expertise in a wide area of business that could further enhance our current offerings,” Nesongano said.
He said NWR is seeking proposals that would allow it to build on the foundation of the previous board’s strategy.
“This strategy had areas that were identified, that we could not fully realise, thus we decided to include them in our soon-to-be-launched Business and Strategic Plan.”
Nesongano refused to divulge more details on the proposed joint ventures, saying that the company will soon hold a briefing at which more details will be revealed.
“We anticipate having a public event soon, where we will offer more depth into what we as a company have in mind.”
State-owned enterprises and other Government institutions that receive public funding will receive reduced budgetary allocations in the current budget, according to the Ministry of Finance.
NWR was not allocated funds in the 2017/2018 budget, according to budget documents.
The documents show that SOEs and public institutions will receive N$4, 6 billion in funding, which is less than the N$6,4 billion that was allocated in the 2016/17 financial year.