Business Reporter
MINISTER of Finance Iipumbu Shiimi said there is no truth in the allegations that TransNamib is to be liquidated.
Shiimi’s remarks come after the national rail company was hit with a court notice to pay over N$60 million debt to Challenger SA or face a court battle that would lead to its liquidation.
The Minister pointed out that the State maintains the view that TransNamib is a strategic entity in the country’s logistics hub aspirations and will do everything in its powers to strengthen TransNamib to ensure that it delivers on its mandate cost-effectively.
Shiimi shared that State provided the required assistance as a shareholder to enable TransNamib to secure a loan of more than N$2.5 billion from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA).
“Despite the economic headwinds, a constrained fiscal environment as well as the challenges posed by the Covid-19 pandemic, the government has remained steadfast in its support of TransNamib to ensure its continued operation and financial sustainability, “Shiimi noted.
He added that over the past few years specifically, the government has provided strong governance and oversight as evidenced in the appointment of competent boards of directors.
In addition, the finance minister noted that the government has written off N$410 million debt owed by TransNamib to improve the company’s balance sheet.
Namibia has rail infrastructure with a total length of 2 687 km across the country.
The State is the owner of this rail infrastructure while TransNamib is the sole operator.
Namibia’s rail infrastructure is connected to South Africa, with opportunities to further extend the railway line and connect to other countries in the SADC Region.
The government deems TransNamib to be the appropriate vehicle for Namibia to serve as the logistics hub connecting the broader SADC region.
NOT GOING DOWN: File photo for illustrative purposes only.
