File Photo: Queueing for N$750 at Walvis Bay
Namibia has put in place about 10 packages to help the people cope with the effects of Covid-19. These details are contained in the 2020/21 budget tabled by finance minister Ipumbu Shiimi Wednesday.
There is the:
- emergency income grant of N$727 million was frontloaded to the health sector
- National Employment and Salary Protection Scheme
- non- agricultural SME loan scheme at the Development Bank of Namibia,
- agricultural business loan scheme and bridging finance for Agribank
- granting of the policy relief to borrowers and policyholders and members in the non-banking financial sector
- a one-year tax-back loan scheme for non- mining corporates
- a one-year tax-back scheme for individuals
- provision of a water subsidy
- waiving of levies and duties on kerosene fuel
- an emergency budget of N$600 million is availed to the Ministry of Basic Education, Arts and Culture for the provision of water, ablution facilities and hostels at about 193 schools, countrywide.
These measures, Shiimi said, prepare Namibia to face the new normal over the next two years.
DETAILS
The Emergency Income Grant provided a once-off payment of N$750 grant to a targeted low-income group affected by COVID-19.
747,281 Namibians have so far benefited from the grant at a cost of N$561.96 million. A further 120, 000 people are expected to benefit after completion of the verification process.
The National Employment and Salary Protection Scheme for COVID-19 was launched on 10 April 2020 in collaboration with the Social Security Commission. Costed at N$645 million, the programme provides for, amongst others, the wage subsidy for employers and employees in the severely affected sectors.
The government contributed N$400 million, while N$245 million will be provided by the Social Security Commission. To date, over 1,372 applications from employers to access the benefits have been made at the Social Security Commission as an implementing agency.
The payment of overdue unpaid invoices for suppliers of goods and services to the government valued at N$1,2 billion and VAT refunds estimated at N$3 billion as at 31st March 2020 was accelerated.
“It is commendable to note that the whole amount of outstanding invoices of that period is paid and N$1.8 billion of VAT refunds are settled. We are retooling our processes to keep this momentum and eliminate spending arrears going forward,” Shiimi said.
There is the non-agricultural SME loan scheme at DBN with a N$500 million government guarantee and the agricultural business loan scheme and bridging finance for Agribank that has a N$350 million government guarantee.
The stimulus and relief program by Agribank will start on 1 June 2020.
The government looks at granting policy relief to borrowers and policyholders and members in the non-banking financial sector and regulatory exemptions are due for gazetting in collaboration with Namfisa.
There is also the one-year tax-back loan scheme capped at N$470 million for non-mining corporates and another for individuals capped at N$1.1 billion whose implementation modalities for the tax-back loan schemes are arranged with the commercial banks while the government will extend guarantees on a case by case basis.
The agriculture ministry will provide water to all communities and enhance hygiene through a subsidy of N$80 million.
In addition, the government has waived levies and duties on kerosene fuel as a basic consumer good during the lockdown period for which the amendment schedule, in terms of the Customs and Excise Act was finalised.
Finally, an emergency budget of N$600 million was made available to the Ministry of Basic Education, Arts and Culture for the provision of water, ablution facilities and hostels at about 193 schools, countrywide.
“The Ministry is finalising an implementation strategy to fast-track the procurement of these goods and services,” the finance minister said.
