Namibia’s power utility records US$155 million in losses during 2021/2022 financial year

Canola plants blossom in a field beneath electricity pylons, as South African utility Eskom experiences frequent power outages, near Cape Town, South Africa, September 8, 2022. REUTERS/Esa Alexander
Source: REUTERS/Esa Alexander

Namibia’s state-owned power utility, NamPower, reported a loss before interest and tax of 2.3 billion Namibia dollars (about 155 million U.S. dollars) for the first time in years, the company’s 2021/2022 annual report shows.

This reporting cycle has seen revenue flattening against the backdrop of significantly expensive electricity imports, said NamPower Board Chairperson Daniel Motinga in a statement contained in the report Wednesday.

Consequently, there is a strong negative correlation between the cost of sales and local generation. The cost of electricity supply increased by nearly 14 percent from 4.5 billion to 5.1 billion Namibia dollars, he said.

Motinga said despite a 2.7 percent reduction in headcount and the absence of salary increases, employee-related costs remained a key cost driver.

NamPower’s investment plan to enhance local generation capabilities and reduce reliance on imports is expected to improve future financial performance. Enditem

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