12 June 2026
Windhoek | As part of its business re-engineering initiatives aimed at improving procurement turnaround times and enhancing service delivery, the Central Procurement Board of Namibia (CPBN) has identified the submission of performance guarantees by successful bidders as one of the key factors contributing to delays in the conclusion of procurement contracts and the commencement of projects.
In terms of Section 55(6) of the Public Procurement Act, No. 15 of 2015 (as amended), successful bidders are required to furnish a performance guarantee before a procurement contract can be signed. These guarantees serve as an important risk mitigation mechanism, safeguarding public funds and ensuring the fulfilment of contractual obligations.
Recognising the critical role played by financial institutions in the issuance of performance guarantees, the Board has embarked on a series of stakeholder engagements with the banking sector to gain a better understanding of the processes, requirements, and challenges associated with the issuance of these financial instruments. The engagements also seek to identify opportunities for collaboration to improve efficiencies, minimise delays in the procurement process, and ensure that the Board's performance guarantee requirements and related processes remain aligned with prevailing market practices and operational realities within the financial sector.
Today, CPBN management, led by Chief Executive Officer Mr. Idi Itope, met with Nedbank Namibia, where they were received by Managing Director Ms. Martha Murorua, together with her management team. Ms. Murorua welcomed the engagement, describing it as both timely and necessary, noting that challenges relating to performance guarantees affect not only the bank and CPBN, but also bidders and the timely implementation of procurement projects.
The discussions focused on Nedbank's performance guarantee processes, service offerings, and the challenges encountered during the assessment and approval of applications. One of the key recommendations emerging from the engagement was the importance of bidders maintaining a sound credit profile and positive banking relationships, as these factors significantly influence the assessment, approval timelines, and overall outcome of guarantee applications.
Bidders were further encouraged to engage financial institutions proactively and seek pre-assessment or pre-approval where possible to reduce delays once procurement contracts are awarded.
The recommendations and insights gathered through these engagements will assist the Board in reviewing and refining its performance guarantee processes to improve efficiency while maintaining appropriate safeguards for public funds. Where necessary, the findings will also inform recommendations to relevant policymakers and regulatory authorities on potential legislative, regulatory, or policy interventions that could strengthen the performance guarantee framework and contribute to a more efficient public procurement system.
The engagement forms part of CPBN's Stakeholder Engagement Strategy, which seeks to strengthen collaboration with key stakeholders, improve stakeholder satisfaction, and enhance public procurement service delivery.