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Government procurement law pins hope on Public Private Partnership

Government procurement law pins hope on Public Private Partnership

The Ministry of Finance is repealing the Tender Board Act with effect from 31 March 2017 and replacing it with the Public Procurement Act from 1 April 2017.

The new policy intends to represent an improvement of public procurement, aligning it with the national development agenda.

New regulations include declaring all bids above a certain threshold to be submitted to the Central Procurement Board for processing.

The National Assembly will elect the Central Procurement Board and appoint Board members in addition to setting up a Review Panel. The minister of Finance, Calle Schlettwein said this panel will consist of fifteen experts who will serve on a temporary basis to adjudicate over reviews of bids should any dispute arise.

The minister said that the new public procurement law streamlines already existing developmental and empowerment instruments within government and the private sector. From a governance perspective, he said that the Act establishes itself as operationally autonomous, but publicly accountable to governance structures as its applies to the entire public sector.

Schlettwein said that this is especially significant, noting that public sector consumption of goods, works and services account for well over 60 % of domestic demand for these services.

Considering the empowerment and national preferential treatment provisions in this new law Schlettwein said it brings into force the Public Procurement Act, designed to boost economic activity by safeguarding the integrity of government spending.

“There has been a lot of publicity on the need to improve the ethics, efficiency and effectiveness of the current Tender Board and its administrative apparatus in terms of governance and the application of the principles of transparency, integrity and accountability as well as value for money” stated the minister.

Effective performance and internal control mechanisms of the previous procurement law also came under question when Schlettwein delivered the announcement, saying that some of the tender prices become over-inflated in the process.

Schletwein mentioned how in some instances, the government and other public enterprises had to deal with various courts cases as a result of proven inconsitencies in the allocation of state tenders.

“It is expected that the new regime under the Public Procurement Act will greatly usher in expertise, ethical and effective leadership, public accountability and legitimacy as well as a system of internal control and evaluation, Schlettwein said.

For the new Tender Board, some members have been appointed on a 5-year full-time tenure while other will serve the board part-time on a three-year tenure.

About The Author

Freeman Ngulu

Freeman Ngulu is an Entrepreneur, into data journalism and is an aspiring content marketer. He tweets @hobameteorite.

Following reverse listing, public can now acquire shareholding in Paratus Namibia


20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.