Detailed Civil society 2024/25 Budget Priorities

CIVIL SOCIETY – Priorities for the 2024/25 Budget

Council of Churches in Namibia (CCN) and Evangelical Lutheran Church in the Republic of Namibia (ELCRN) (Social Economic Justice Unit of the Council of Churches in Namibia and the Desk for Social Development of ELCRN)
Contribution: Uhuru Dempers
Priorities:
1.1 Increased funding for Early Childhood Education (ECE) to ensure access to quality ECE for the excluded 70% plus children in Namibia. There is consensus in global scientific research that ECE is the most important foundation for any further education that has benefits for other levels in the education sector.
1.2 Substantial increase for housing and sanitation budget through funding for people centered housing opportunities including significant increase in funding for Shack Dwellers Federation of Namibia (at least for starters from current NS10 million to a N$100 million) and other community housing initiatives. Meanwhile the situation in the informal settlements has been declared by the President as a National Emergency and a Humanitarian Crisis. However no significant increase in funding has been observed for this priority area.
1.3 Allocate additional resources to Ministry of Agriculture, Water and Land Reform for implementation of the Resolutions of the 2nd National Land Conference and the Recommendations of the Commission of Inquiry into the Claims for Ancestral Land Rights and Restitution
1.4 Increase funding to Ministry of Health and Social Services to rollout Universal Health Care to ensure access to quality health care for the 80% citizens that do not have access to private medical aid schemes.
1.5 Establish a fund for youth employment creation for young people to access collateral free loans and small grants to initiate youth enterprises to participate in public tenders and own startups.
1.6 Increase allocations to Office of the Ombudsman and Anti-Corruption Commission to fight corruption and protect citizens from rights violations.

Specific measures:
2.1. Increase the capacity of Namibia Revenue Authority (NAMRA) by boosting them with local and international experts in taxation to investigate tax avoidance, capital flight and illicit financial flows. The NAMRA CEO has expressed concerns that important sectors of the economy are not paying their fair share of taxes.
2.2. Assemble a team of retired civil servants and experts to investigate wasteful expenditure and opportunities for saving the tax dollar and invite public inputs on curbing wasteful spending and savings including cutting out the middle-men syndrome. Government and in particular the Ministry of Finance must consider doing all social grant payments through the Social Security Commission.
2.3. The Minister of Finance to introduce a mechanism for public inputs and consultations on capital projects above a certain threshold, for example a N$100 million, to avoid huge amounts of public funds being spent on white elephants and nice-to-have buildings, roads and other non-priority expenditures. This could be done through relevant Committees in Parliament or by the Executive Branch.
2.4. The Minister of Finance to introduce a mechanism through which line Ministries present their budget accountability reports on a platform where they can engage with citizens to improve accountability and transparency. This presentation should also indicate priority areas which the specific line Ministry has requested funding for in the next financial year.

Development Workshop Namibia
Contribution: Jessica Brown

Priorities:
1. Increased support for the poorest in our communities including those in informal settlements.

The Namibian housing crisis is characterised by high housing costs due to the slow and costly delivery of serviced land and negligible affordable formal housing production, in a context of high unemployment, under-employment, and extremely low levels of household income.

More than 40% of the Namibian population and around 66% of its urban population live in informal settlements or backyard shacks. NPC has estimated the urbanisation rate at 4.5% a year, which is higher than the average population growth. The percentage of the population that is urbanised is projected to rise to almost 60% in 2025, up from 41% in 2001, which suggests that the challenges of capacity for urban development will intensify.

The Namibian housing sector is categorised into five market segments namely: ultra-low, with monthly household income between N$0 and N$5 000 (US$305) represented by 62% of the population; low, with monthly household income between N$5 000 (US$305) and N$10 000 (US$609) represented by 25% of the population; middle, with monthly household income between N$10 000 (US$609) and N$20 000 (US$1 219) represented by 10% of the population; high, with monthly household income between N$20 000 (US$1219) and N$40 000 (US$2 437) represented by 1.7% of the population; and ultra-high, with monthly household income above N$40 000 (US$2 437) represented by 1.1% of the population.

It is the ultra-low to low-income groups that are hard hit by housing affordability. In Namibia, a household is considered able to afford to buy a home if it costs 3.5 times the gross household income for a single earner household or 2.9 times the gross household income for dual-income households. Most housing finance products require borrowers to have a minimum salary of N$12 900 (US$786) or (in some cases) N$14 300 (US$871).

There is an urgent need to make land, and housing more affordable to stop the rapid spread of informal settlements. A direct fund to local authorities will allow them to subsidise plot-prices that are already being serviced to make them affordable to a larger cohort of the population and allow people to slowly build on- and invest in land they own.

2. Increased focus on early years as preventative measure and to provide children with a good start in life – in terms of health and education (focus on aged 0-6).

Investing in the earliest years of a child’s life (from 0-6) has been proven by Nobel prize winning economist James Heckmann (among others) to be the most efficient investment of funds in a child’s life. By providing a child with basic health care, good nutrition and access to quality early learning opportunities results in improved lifelong learning outcomes, improved lifelong earnings and contribution to a national tax-base, and improved health and wellbeing outcomes. Heckmann found that for every dollar invested in the early years there is between 13 and 17 dollars returns on investments.

A similar study in Namibia in 2018 found that investment into early childhood services would:

• Reduce repletion and school dropout rates.
• Increase graduation and matriculation rates.
• Increase lifelong earnings.
• Decrease crime and antisocial behaviors including GBV.
• Decrease costs associated with long-term health issues.

Based on this the cost of inaction study estimated that every N$1 invested into ECD would have a N$17 return on investment.
The study also found that current spending in the education system is skewed, with the majority of expense being allocated to older children, and very low per-child spending in the early years:

This results in a poor educational and developmental foundation which leads to many of the challenges we see in our education system and society.

Specific measures:
1. Universal basic income – urgently needed – the levels of poverty and desperation at the moment are unprecedented. This would immediately reduce chronic malnutrition and stimulate the formal and informal economy and will be an immediate alleviation of the huge stressors facing people day-to-day that also results in violence and crime.
2. Earmarked fund for early childhood development (children aged 0-6) ideally within stand-alone budget lines in Education, Gender and Health ministerial budgets. But vitally in Education budget for increased funding and oversight of early learning facilities for children 3years+
3. Funds for local authorities to subsidize land for low-cost housing to reach the poorest in society and to improve conditions in informal settlements.
Other points:
– Improved accountability and budget openness
– More transparency about ministries returning budgets unspent.

Namibia Housing Action Group (NHAG)/Shack Dwellers Federation of Namibia (SDFN)
Contribution: Anna Muller

Priorities:
1. Increase in supporting housing and informal settlements – targeting those on lowest incomes to scale as if this matter is a real emergency.
2. Ensure that communities get access to resources to upgrade incrementally – as per housing policy and strategy drafted during 2022.

Specific measures:
1. Try to reach at least 1,500 households with improved housing
2. And facilitate the upgrading of services for 2,500 households in informal settlements

Other points:

The implementation of projects impacting the lower income groups are taking long to be realized. For example, the Second Land Conference Resolutions on urban land reform targets aiming at the lower income groups are far from being achieved.
Note: The final housing policy and strategy from April 2023 was apparently presented to the Cabinet Committee on 9 August 2023. As stated during the previous engagements with the NGOs when an increased allocation to the SDFN was requested, this strategy was required by Minister of Finance to increase housing budget allocation. The Task Team for reviewing the Housing Policy and Strategy (TTNHP) of which NHAG is a member has not yet been informed whether this took place or not or what the outcome of this meeting was.

Namibian Catholic Bishops’ Conference
Contribution: Archbishop Liborius Ndumbukuti Nashenda, OMI

1. Introduction The Namibian Catholic Bishops’ Conference (NCBC) noted the tabling of the 2023/24 National Budget and the Medium Term Expenditure Framework for the FY2023/24 – FY 2025/26 by Honourable Ipumbu Shiimi, Minister of Finance, on 22 February 2023. As all might recall, the theme of the Honourable Minister’s Budget Statement was: ‘’Economic Revival and Caring for the Poor.’’

2. Positives of the 2023/24 National Budget 2.1 Social and Public Safety Sectors allocations:

2.1 The NCBC applauds Government for continuing to prioritise Social Sector Ministries and Ministries responsible for public safety in financial resources allocation. The total allocation to the Social Sector during the 2023/24 Financial Year amounts to N$34.4 billion or 52.9% of the National Budget.

The allocation during the 2023/24 National Budget prioritises the Ministry of Education, Arts and Culture with an allocation of N$16.8 billion, the Ministry of Health and Social Services with N$9.7 billion, the Ministry of Gender, Poverty Eradication and Social Welfare with N$6.5 billion mostly to cater for social grants (Old Age, Disability and Orphan and Vulnerable Children Grants), the Ministry of Higher Education, Training and Innovation, an allocation of N$3.8 billion, and Ministry of Home Affairs, Immigration, Safety and Security, N$6.7 billion.

The NCBC supports these allocations. However, despite the high budgetary allocation to the Social and Public Safety Sectors, the Church is deeply concerned that the implementation, performance and outcomes of the general education system as well as the public health and police services remaining generally poor.

The concern is brought about by the fact that the majority of the people especially the poor cannot afford private services, thus they rely on the public sector for basic human needs such as education, health and public safety.

It is imperative, therefore, that the relevant ministries in particular, and the Government in general, devise concrete and implementable strategies and action plans to ensure that resource allocations are spent prudently, and are commensurate with learning and teaching outcomes, and effective services.

The normalisation of poor public services for the poor and vulnerable cannot be accepted. Hence our call for action to improve the desperate conditions of the needy, poor, and socially and economically disadvantaged consistent with Catholic Social Teaching of the Church on preferential option for the poor and vulnerable. If resources are mostly on personnel expenditure, then officials in their commitment to work and public service should at least render efficient and effective services to demonstrate value for the allocated financial resources.

2.2 Administration Sector

The Bishops’ Conference supports the allocation of N$1.9 billion to the Ministry of Urban and Rural Development, especially the N$96 million targeted at upgrading informal settlements. The conditions in the informal settlements that HE the President described as a ‘’humanitarian crisis’’ in his last SONA requires adequate resource allocation to restore the human dignity of persons who find themselves living under this condition.

The budgetary allocation for this purpose in the 2023/24 National Budget in our view is inadequate. It is against this background that the NCBC calls upon the Ministry of Urban and Rural Development to partner with other stakeholders and mobilize extra – budgetary financial and other resources to address this humanitarian crisis. There is also a need to review the housing delivery model and developmental frameworks that focus on developing remote and rural areas to address rural-urban migration, as people migrate to urban areas for job opportunities and better public services. In effect, the investment possibilities are decentralized to benefit those on the peripheries of the country.

2.3 Allocation to the Namibia Statistics Agency (NSA)

The NCBC applauds Government for allocating budgetary resources to the NSA to conduct the National Census. Our support is informed by the need for up-to-date and reliable data to inform evidence-based policymaking in responding to economic and social matters, hence our support for the allocation.

3. Matters of concern to the NCBC 3.1 Development Budget:

Notwithstanding the difficult balancing act in resources allocation, the Bishops’ Conference remains deeply concerned about the N$6.5 billion allocation to the Development Budget compared to N$66.1 billion allocated to the Operational Budget.

The deep concern is in the context of high unemployment rates and the correlation between unemployment and level of education. Higher allocations to the Development Budget are likely to create jobs for unskilled workers through capital projects and public works programmes. Low allocation to the Development Budget is likely to exacerbate the unemployment and hopelessness among unskilled Namibians, and likely contribute to increased rural-urban migration with all its implications on housing and other service delivery challenges.

The NCBC is deeply concerned that Economic Revival and Caring for the Poor without targeted strategies for restarting the economy and economic growth will remain symbolic. Government should also address the bottlenecks in the procurement processes to avoid delays in capital project execution and delivery of services and goods.

3.2 Revenue and expenditure:

The NCBC noted the increased estimated revenue of N$74.7 billion attributed to SACU revenue and dividends from public enterprises and expenditure of N$84.6 billion representing 4.6% of GDP. The need for prioritizing and prudent utilisation of financial resources in the context of unpredictable difficult economic times cannot be overemphasized.

Corruption and embezzlement of public resources must be genuinely addressed at all costs and at all levels of Government and other institutions.

3.3 Personnel Expenditure / Wage Bill:

The NCBC continues to be deeply concerned about the ballooning personnel expenditure and its impact on the National Budget. As stated previously, the personnel expenditure is not sustainable, and possesses high risks for the future, hence our deep concern about lack of concrete policy intervention and strategies in the Budget Statement to curtail personnel expenditure.

The actions of Government to address the personnel expenditure seems not to produce tangible results to reduce the costs. The size of both the Legislature and Executive in relation to the population should be reviewed and looked into as a means to contain expenditure.

3.4 Budget Deficit and Government Debt:

The NCBC remains concerned that Government debt servicing costs are estimated at N$10 billion. Rising debt has implications for future generations.

4. Allocations of concern:

The NCBC further remains concerned about the allocation to the Ministry of Defence and Veterans Affairs as compared to Agriculture, Water and Land Reform for example, where COVID-19 has taught us lessons about self-reliance and local food security provision.

Agriculture through the various value chains, if properly planned, has the potential to employ many people, hence our concern that financial resources are not being adequately allocated to the Sector consistent with international declarations and recommendations that Namibia has supported.

The Green Schemes intended to contribute to food security have almost collapsed due to policy, administrative deficiencies and inefficiencies or owing to unnecessary bureaucratic hiccups. This situation is so alarming that it needs immediate attention.

7. Conclusion:

Namibia finds herself in unprecedented and uncertain times characterised by increasing cost of goods and services, and by implication, the cost of living. Against this background, NCBC’s wish is that the preparation and development of the National Budget prioritises the basic needs of the people, and that different budgeting scenarios should be applied instead of continuing with a historical budgeting scenario.

Values and principles of good governance, transparency, accountability, and ethical conduct ought to be the norm in public office to help our nation become prudent in the utilisation of public resources. The NCBC would be ready to assist the government in implementing projects which are within her ability/area of expertise, provided that the state makes the financial resources available.

Raison
Contribution: John Mendelsohn

Priorities:

Significant measures should be implemented to advance the informal economy since this is the sector of our economy that sustains the majority of Namibians. These are the people that are largely sustained by the 71.8% of the labour force that are unemployed, or vulnerably or informally employed.

Priority should be given to facilitating the acquisition and development of capital assets for low-income families.

Development funds are not allocated to areas of Namibia where residents are unable to make a decent living or to activities which do not contribute to decent living conditions and livelihoods.

Specific measures:
Additional funds for social grants are provided and taxes are reduced for people, places, activities and commodities that best accelerate the multiplication by the informal sector of money and its value.

The provision of tenured land and services for low-cost urban and peri-urban housing be subsidized to the extent that it is virtually free.

To support the advancement of Namibia’s informal economy, it is recommended:

• That policy and legislation that has impacts on the informal economy be reviewed and amended where advisable.
• That policies be formulated and implemented to invigorate the informal economy
• That the NSA’s National Accounts report an abundance of statistics on the performance of the informal economy.

Radical Emancipation And Leadership Development Club (REAL DC)
Contribution: Lloyd Bock

Priorities:

1. Youth unemployment should be seen as a priority area for social protection policy. Thus, a basic income grant is needed for those between the age of 18-59 as a means of survival.
2. Issues facing the boy child should specifically be considered in the gender budget as while as in the fight to combat GBV. The issues affecting men should be addressed and resources and facilities made available for psychosocial support systems well as training and development programmes to be geared towards men.
3. HIV-AIDSs has been highly neglected since the COVID-19 pandemic. The Ministry of Health should revive the campaign to sensitize the community on staying safe. Enhanced efforts need to promote the campaign in rural areas.

Specific measures:

1. The child grant should be on a par with the disability grant as many children are experiencing social challenges. Demands for registration and school fees still put many children at a disadvantage.
2. The registration fees that parents are asked to pay in order to enrol their children are a social injustice. Schools should be subsidised to cover the registration of learners.
3. Funds should be prioritised for the Early Childhood Development phase of education as more resources should be geared to the future of Namibia.
2. Arts, Entertainment and Sports should be revitalised to combat the current youth unemployment as these sectors are highly neglected.

Rockshieldburg City
Contribution: Taimi Ndakumwa Kapofi

Priorities:

• Increased funding for education and skills development.
• Enhanced investment in healthcare infrastructure and services.
• Greater support for job creation and economic development initiatives

Specific measures:
• Increase funding for small and medium-sized enterprises (SMEs) to stimulate economic growth.
• Allocate funds for the construction and maintenance of roads and transportation infrastructure.
• Enhance social welfare programmes to address poverty and inequality.

Other points:

• Environmental conservation and sustainability initiatives.
•  Investment in renewable energy sources and green technology.
• Strengthening law enforcement and justice systems.
• Promote gender equality and empower women through targeted programmes.
• Enhance access to clean water and sanitation facilities in rural areas.
• Allocate funds for disaster preparedness and response measures.

The Young Feminists Movement Namibia Trust
Contribution: Vimbainashe C Makanza

Priorities

• Basic Income Grant
• Expenditure specific to GBV
• Transparency and State accountability processes to facilitate active engagement and participation of civil society

Specific measures:

• Disbursement of BIG payouts to low income single mother headed households, child headed households
• Development of VAT on Sanitary pads policy to be inclusive of sanitary products that have been classified as luxury, and distribution of pads into schools to curb missing school as a result of one’s menstrual cycle.
• Safe houses and shelters for victims of violence and people who are homeless
• Investment in Community Gardens along with informed guidance
• Investment in the Gender Policy’s Coordination Mechanism to increase women’s participation in legal processes

 

Other points:

• Early Developmental Childhood Learning
• Gender-responsive budget for persons living with disabilities
• Budget plans that are specific to tackling youth unemployment
• Transparency around natural resource management
• Expansion of informal settlements to cater to environmental rights
• Climate change impact on rural-urban migration (protection informal traders and businesses)