FNB, CPBN target procurement delays
FNB Namibia and the Central Procurement Board of Namibia (CPBN) have pledged closer cooperation aimed at improving the efficiency of public procurement processes, with a particular focus on performance guarantees required for government contracts.
The discussions took place during a stakeholder engagement hosted by FNB Namibia on 15 June, bringing together representatives from the bank and the procurement authority to examine ways of reducing administrative bottlenecks and strengthening collaboration.
The CPBN delegation was led by chief executive officer Idi Itope, while FNB Namibia was represented by head of enterprise banking Leonard Hamunyela and manager of public sector Priscilla Akudhenga.
Performance guarantees, which are required under Section 55(6) of the Public Procurement Act (Act No. 15 of 2015) before the award of public contracts, were the central focus of the meeting. The guarantees are intended to protect public funds by providing assurance that contractors will meet their contractual obligations.
During the engagement, FNB outlined the process for issuing performance guarantees, including application requirements, supporting documentation, credit assessment procedures and standard processing timelines.
The discussions also examined common challenges experienced by bidders and explored measures that could make the process more predictable and efficient.
Participants said closer cooperation between financial institutions and the procurement board could help reduce delays that affect project implementation and improve access to procurement opportunities for Namibian businesses.
Hamunyela said performance guarantees should be viewed as more than a regulatory requirement.
"Performance guarantees are often seen as a compliance step, but in reality they are a critical enabler of economic participation," he said.
"When these processes are unclear or delayed, it is not just paperwork that is affected, but the pace at which projects move and opportunities are realised. Our focus is on simplifying and strengthening this process so that businesses can participate with greater certainty, and public sector projects can be delivered more efficiently."
The engagement forms part of the CPBN's broader efforts to strengthen relationships with financial institutions and enhance the effectiveness and integrity of public procurement.
FNB Namibia said it would continue working with stakeholders to support initiatives aimed at improving efficiency, transparency and accountability within Namibia's procurement system.
