Abstract
The objective of this discourse was to investigate the use of capital budgeting decision in Namibian State-Owned Enterprises. Firstly, to examine if Namibian SOE’s are using capital budgeting methods (like IRR, NPV, payback period etc.) for investment decisions? Secondly to analyze if SOEs risk assessment methods (sensitivity analysis, scenario analysis or Monte Carlos simulation) and standards are in place pertaining to capital budgets. A computerized environment with the assistance of SPSS software was used to analyze the multivariate data obtained from structured questionnaire. According to the survey findings; capital budgeting practices in SOE’s seem to have improved in Namibia with the majority of companies using the sophisticated DCF techniques. The ensuing recommendations are made: the line ministries responsible to execute ownership control over the sample SOE’s should ensure that capital budgeting methods are applied, and capital budgets should be submitted to the line Minister, in relation to section 19 (1) of the SOE’s Act. Board member in terms of section 18 (1) of the SOE’s Act should include capital budget decision made as part of the performance agreements that have to be signed between the Minister and each board member. On the operational level, there is a need to train state-owned enterprise management teams on the basics of capital budgeting techniques to reduce the high dependency rate of formal capital budget analysis on external consultants.
KATJIRURU, T (2021). A Review Of Capital Budgeting Decisions In Namibia’s State-Owned Enterprises. Afribary. Retrieved from https://tracking.afribary.com/works/a-review-of-capital-budgeting-decisions-in-namibia-s-state-owned-enterprises
KATJIRURU, TALASKA "A Review Of Capital Budgeting Decisions In Namibia’s State-Owned Enterprises" Afribary. Afribary, 21 Apr. 2021, https://tracking.afribary.com/works/a-review-of-capital-budgeting-decisions-in-namibia-s-state-owned-enterprises. Accessed 17 Nov. 2024.
KATJIRURU, TALASKA . "A Review Of Capital Budgeting Decisions In Namibia’s State-Owned Enterprises". Afribary, Afribary, 21 Apr. 2021. Web. 17 Nov. 2024. < https://tracking.afribary.com/works/a-review-of-capital-budgeting-decisions-in-namibia-s-state-owned-enterprises >.
KATJIRURU, TALASKA . "A Review Of Capital Budgeting Decisions In Namibia’s State-Owned Enterprises" Afribary (2021). Accessed November 17, 2024. https://tracking.afribary.com/works/a-review-of-capital-budgeting-decisions-in-namibia-s-state-owned-enterprises