Analysing the performance of public enterprises in Namibia: A challenge for the practice of public administration?

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Abstract

Public enterprises (PEs) are important instruments through which governments implement various national development objectives. A majority of PEs in Namibia face criticism on their inability to meet performance targets. These PEs are poorly managed and are a constant financial burden to the state. The degree of state acceptability through its public administrative processes as influenced by PE performance has been problematised as having a bearing on the trust and confidence of the public in the government. A qualitative paradigm was followed in analysing PE performance and its challenges for public administration in Namibia. The current text finds that poor accountability measures, financial burden on the state, procurement anomalies and the proliferation of corruption as some of the underlying causes for the poor performance of a majority of PEs in Namibia. This status quo erodes the public’s trust in the ability of the government to manage PEs. The study found a great contradiction in the relationship that exists between the government as a shareholder with the leadership of most PEs as relating to the crux of the agency theory. This study centrally recommends the robust implementation of existing legislation to redress the poor performance of PEs and its challenges for public administration.

Keywords: Public Enterprise, Public Administration, Performance, Namibia

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G38, H11, L88, L98, M48

Received: 10.05.2020
Accepted: 11.09.2020
Published online: 14.09.2020

How to cite this paper: Marenga, R. (2020). Analysing the performance of public enterprises in Namibia: A challenge for the practice of public administration? Journal of Governance & Regulation, 9(3), 96-109. https://doi.org/10.22495/jgrv9i3art7