Parliament on Tuesday approved the Public Enterprises Ministry budget allocation of N$ 1, 4b.
This is a massive increase compared to the 2019/2020 budget allocation of N$400m.
Public Enterprises Minister Leon Jooste while motivating his ministry’s budget allocation said 22 commercial State-Owned Enterprises under his ministry have improved on their profit margin to 7.4% despite the challenging economic times.
Jooste said their overall revenue has grown with 1.9% year on year and the SOEs recorded profitability of N$ 1.7 billion.
Speaking on the challenges, Jooste pointed out that the expenditure growth rate has also grown by 12.6% over the same period.
The 22 commercial SOEs have a combined asset value of these commercial enterprises amounts to N$70.2 billion and liabilities of N$ 33.2 billion.
As a result of the Public Enterprises Governance Act of 2019, Jooste said the Ministry assumes the role of responsibility and transforming 22 commercial public enterprises.
Jooste motivated the ministry’s budget allocation of N$ 1.4 billion in the National Assembly Tuesday.