By: Nghiinomenwa-vali Erastus
Despite topping the charts on social sector spending, Namibia has posted poor human capital development outcomes, unsatisfying educational outcomes and a struggling health sector, the Minister of Finance and Public Enterprises, Iipumbu Shiimi said.
Speaking at the Namibia University of Science and Technology (Nust) last week, Shiimi said the social sector has absorbed 52.9% of the budget for FY 2023/24, but yet the country remains well behind other high middle income countries in indicators of health and education.
Minister Shiimi pointed out that social assistance is important for human capital development, and the country has to prevent leakages in the sector by all means.
Many analysts have also lauded the sector to be a deal breaker in stimulating the local manufacturing sector through procurement, however, Shiimi early in the year also revealed that his colleagues are failing to adhere to procurement rules.
In his presentation at Nust, Shiimi suggested that his colleagues should redirect resources towards more optimal programmes and activities within the sectoral sectors, adding that “more budget allocations alone is not the answer.”
Namibia ranks in the top 10 education expenditure as a % of GDP, spending even more than Norway and Denmark. However, the country has a weak learning outcomes.
Shiimi said that the country’s educational attainment is low for its level of GDP per capita spending, while the average contribution of each production factor to GDP growth for labour from 1992 to 2017 remains the lowest.
Namibia is performing badly as an upper middle in comparison with others, Shiimi said.
Namibia ranks in Top 50 in health expenditure as a % of GDP spend more than South Korea and Luxembourg. Despite this, Namibia’s health outcomes in comparison to other low income groups is sub-optimal, according to Shiimi.
In Namibia, the Universal Health Coverage Index score is 62 (2017). According to Shiimi, this is lower than the average for its income group which stands at 69.
In Shiimi’s assessment, a child born in Namibia today will be 45 – as opposed to 56 globally – as productive when they grow up as they could be if they enjoyed complete education and full health.
Twenty-three out of 100 children in Namibia are stunted, and so are at risk of cognitive and physical limitations that can last a lifetime.
Meanwhile, a sizable share of social assistance leaks to the non-poor, diluting the poverty fighting and human capital improvement impact.
In his “Economic Revival and Caring for the Poor” theme for the FY2023/24 Appropriation Bill, the Finance Minister allocated resource across the different sectors and programmes, highlighting the importance of utilising the budget to respond to the prevailing economic and social climate.
Shiimi last year said the country is faced with a myriad of social challenges that require urgent attention in order to to improve access to and quality social services, as well as to broadly safeguard gains on social and human development indicators.
With this in mind, the Ministry allocated a total of N$38.4 billion to the social sectors during FY 2023/24, a significant increase from N$34.4 billion in the preceding financial year.
The Minister said he tabled last year’s budget in full awareness and recognition of the continued hardships endured by most of the country’s citizens from various corners of the country.
The Ministry of Gender, Poverty Eradication and Social Welfare has been allocated N$6.5 billion in FY2023/24, an increase from N$5.5 billion the previous year. The increase reflects adjustments to the various social grants to maintain the grant values in real terms given the rising cost of living.
The education sector has seen an increase in allocation to Basic Education to N$16.8 billion in FY 2023/24 and N$51.2 billion over the medium term expenditure framework (MTEF).
Of these allocations, more than N$200 million is earmarked for the recruitment of additional teachers to ensure adequate teacher-learner ratios in classrooms.
Moreover, more than N$570 million has been availed in the development budget to cater for the construction and renovation of classrooms as well as other education infrastructures such as hostels and offices.
Higher Education has been allocated N$3.8 billion in FY 2023/24 which is 9.8% higher than the preceding year.
The education sector continues to absorb a growing share of the national purse.
Of the total expenditure this year, 28.4% is earmarked for the education sector, which equates to 9.6% of GDP.
As for the Ministry of Health and Social Services, Shiimi allocated N$9.7 billion in FY2023/24 and N$29.4 billion over the MTEF.
Furthermore, the country has availed more than N$700 million to the ministry for investments in and renovations of health facilities as well as recruitment of medical personnel, acquisition of pharmaceuticals and ambulances.
During the year, the ministry will also develop the Universal Health Coverage Policy Framework to ensure that Namibians receive financial risk protection and improved access to quality health care services. Email: erastus@thevillager.com.na
