Dolly Menas
The Namibia Students Financial Assistance Fund’s (NSFAF) recent recovery of N$17 million in student loans, hailed by the organisation as a significant achievement, has reignited debates about the need for fundamental reforms in Namibia’s higher education funding system.
NANSO President Dorthea Nangolo has expressed concerns that the current system places young graduates in precarious financial situations, describing the recovery as a “mixed accomplishment.”
“Starting life with debt is problematic. While the N$17 million recovery is fair, it does not reflect the harsh reality for graduates who are either unemployed or earning too little to repay their loans,” she said.
NANSO, which represents over 200,000 students, has consistently called for student loans to be converted into grants.
This proposal is encapsulated in the organisation’s Resolution 17, aimed at reducing the financial burden on graduates.
Nangolo elaborated on the challenges graduates face, noting that many are not only supporting themselves but also their families.
“Most graduates are not just trying to support themselves, they are supporting their entire families. This is the African reality. To expect them to repay loans on top of this is unreasonable,” she argued.
She urged the government to implement transparent and sustainable policies that prioritise education funding without imposing undue financial strain on graduates.
“Education should not be a privilege or a burden. It should be a right, supported by systems that ensure its accessibility and sustainability,” said the NANSO president.
Nangolo proposed an education levy modeled after Namibia’s road levy system, which funds infrastructure projects.
She suggested that companies, particularly in the mining sector, contribute at least 1% of their profits to education.
“A small percentage from industries like mining or companies operating in the education sector could provide consistent funding. This would ensure education is accessible to all, regardless of economic status,” she suggested.
The Affirmative Repositioning (AR) movement has also weighed in on the matter, expressing skepticism about the government’s proposal to integrate NSFAF into the Ministry of Higher Education.
The AR movement believes that such a critical institution requires competent and accountable leadership, rather than structural reshuffling.
“One wonders about the decision to integrate NSFAF into the ministry. The fund is already struggling with inefficiencies.
Reintegration does not provide any sense of hope or optimism,” said George Kambala, AR spokesperson.
Kambala raised concerns about the challenges this move could pose, including administrative costs and accountability issues.
“Are you also changing the loan system to a grant system? How will you manage the hefty salaries of those already employed by the fund within the ministry’s payroll structure? This could inflate government expenditure, which already allocates 80% of its budget in some ministries to human capital,” he said.
He noted that recovering N$17 million from billions in disbursed loans raises questions about the fund’s effectiveness.
He stressed that NSFAF disbursed nearly N$30 billion in loans but are only recovering small amounts, thus it is not a call for celebration but a sign of deeper systemic issues.
He questioned the government’s accountability mechanisms, which he argued are insufficient to address inefficiencies. He noted there is a lack of oversight and accountability across the board.
“This is costing the country,” Kambala asserted.
Kambala pointed out that whether NSFAF is dissolved or integrated into the ministry, competence is key and without competent leadership, neither approach will work.
