The Public Procurement Act 15 of 2015, came into operation in 2017, with the objective of    harmonization of procurement policies, systems and practices across Government and State-owned Enterprises. Prior to the implementation of the Act, State Owned Enterprises managed their procurements completely different from Government.
Public Procurement serves as a socio-economic empowerment tool in most African countries, and Namibia is no different.  Suffice to state that procurement constitutes a significant portion of public spending, thus promotion of integrity, fair dealing, transparency, efficiency, effectiveness, accountability, legality, and achieving value for money remain key considerations as provided for under Section 2 of the Procurement Act.
The Procurement legislation has been in operation for the past eight years with recent amendments in 2022, aimed at addressing prevailing challenges.  A predicament facing certain State-Owned Enterprises with commercial activities, has been the application of standardised public policy to institutions requiring a different approach to remain competitive. For purposes of dissecting the difficulties encountered and providing potential solutions, it is imperative to define what constitutes a public entity with commercial activities.  
Commercially operating public corporations and public bodies are described as government owned entities that function like private companies engaging in commercial activity to generate profit.
The double barrel approach of using public procurement, as a socio-economic empowerment tool to obtain value for money is commendable. However, the application of a one size fits all piece of legislation across board may negatively affect some SOE’s serving as special purpose vehicles.
While the prescribes of the procurement legislation fits Government like a glove, the same cannot be said about certain state-owned enterprises whose mandates are geared towards profit making. Subjecting these entities to a rigid public procurement process weakens their commercial viability and competitiveness, compared to their private sector rivals. Additionally, the relatively small Namibian market coupled with the inherent bureaucracy in procurement compounds the situation.  The potential long-term effects are eroded profit margins, threatening sustainability in the long run.     
The above give rise to non-compliances, as SOE’s whose mandates don’t fit the mould attempt to balance compliance and efficiency.  Attaining a perfect balance remains elusive given the guiding legislation which is more favourable towards Government operations.
In the interest of achieving improved compliance rates and realisation of socio-economic objectives, the need for the regulator, the Public Policy Unit, to have meaningful engagements with stakeholder’s is of paramount importance.   
A more flexible piece of legislation is recommended, taking into cognisance the needs of all public entities including those with commercial activities. The mandates of these institutions ought not be sacrificed at the expense of compliance. Harmonising procurement practices across board should preserve competitiveness.
Against the aforesaid, it is evident that the conventional approach has not been very effective, hence the need for innovation, for purposes of achieving both compliance and efficiency. 
Comparing notes with peers remains an option to be explored.  One progressive piece of legislation in recent times, is the Tanzania Public Procurement legislation. Section 49 of the Tanzanian Public Procurement Act of 2023 reads;
“Commercially operating public corporations and public bodies shall conduct procurement, supply and disposal of assets in the manner prescribed in the regulations’’
The Regulations distinguish between procurement procedures of public entities engaged in commercial activities and those who are not. This approach provides needed flexibility accommodating the dynamic business environment public entities find themselves.  The regulations are currently obtainable in Kiswahili with the English version yet to be published. Public Entities that inspired amendments to the Tanzania’s legislation are Tanzania Posts Corporation (TPC), Tanzania Telecommunications Company Limited (TTCL), and Tanzania Aviation Authority (TAA).
It can be safely assumed that the Namibian counterparts are equally affected in various degrees, hence comparing notes with Tanzania, borrowing some concepts and customization to fit the Namibian situation is recommended.  State owned enterprise are a significant contributor to robust economic activity, hence amidst calls for industrialisation and high employment rates, public procurement remains a strategic tool.
The challenge is on for procurement professionals and lawmakers, to come up with innovative solutions. Transforming the Namibian procurement landscape remains the collective responsibility of all stakeholders. In our quest to achieve economic prosperity for all, no stone should be left unturned against the backdrop that procurement remains an indispensable socio-economic empowerment tool.

*Maria Jonga is  an advocate for  Procurement legislation change to be more accommodating to State Owned Enterprises. She worked at the Public Procurement Review for three years as a Chief Controller.