Operators who want to run the state lottery must secure a guarantee of N$100 million, says Michael Mutonga, Chairperson of the Lotteries Board.

Mutonga says the board does not have the ability to run a multi-billion-dollar project like the state lottery, hence the need for a private licensee.

"One of the requirements that is very fundamental and is in the law is that you need to put a guarantee of about N$100 million. I know people are concerned about that, but you have to understand the purpose of those 100 million. If the operator defaults and runs away from Namibia, it's for the board to pay all people who have bought tickets from this operator."

The licensee, which will be governed by the Lotteries Board, will run the state lottery for eight to ten years.

Mutonga says the process of choosing an operator will be done transparently through a public procurement process expected to be finalised before the end of this year.

Even though neighbouring South Africa's National Lotteries Commission is currently tainted with corruption and fraud amounting to more than a billion dollars, Mutonga says Namibia has made sure that the same does not happen here.

"When we did benchmarking with South Africa and Botswana, they realised ours was the best because the law makes it very clear that we will have what we call a state lottery trust fund where the proceeds of the state lottery will go, and that money will only be used in terms of the law as prescribed. In some countries, it goes to the Treasury, and usually, it's very difficult for it to come back for the purpose it was intended."

Mutonga is calling on interested licensees to remain patient.

"This is a long process; it involves a lot of money. We need to be as transparent as we can. Patience must be exercised, but as soon as we get the resources to kick off with the state lottery, I think we'll be able to move swiftly, and we'll be able to roll the first wheel of the jackpot in not more than 90 days if we get the money today."