By Emma Kakololo
WINDHOEK
The Ministry of Finance yesterday hosted a workshop on Solidarity Levies as a possible way to fund development projects.
Namibia is one of the many African countries that are not quite on track in achieving all the Millennium Development Goals (MDGs) by 2015.
While there are many contributing factors, it is believed that many countries will fail to reach the MDGs because of a lack of financial resources.
Yesterday Finance Minister Saara Kuugongelwa-Amadhila urged participants to explore, in addition to the Solidarity Levy, the possibility of introducing an Air Passenger Levy as a way to raise more funds to fight hunger and poverty.
“Firstly, I hope we can all agree that the Solidarity Levy is an initiative that Namibia is right in supporting. Secondly, I want to hear your reactions to an Air Passenger Levy, as the Government’s preferred option to implementing it,” she urged.
Namibia is one of the 20 developing countries that signed an Adhesion Agreement in February this year committing them to introduce the two forms of levies.
The countries also agreed that income generated from Solidarity Levies be given to the International Drug Purchase Facility (UNITAID) within the World Health Organisation (WHO) to increase the supply and availability of drugs at reduced prices for the treatment of HIV/Aids, malaria and tuberculosis.
Addressing participants, United Nations Resident Coordinator Simon Nhongo said although the need for innovative development financing initiatives to supplement official development assistance was welcomed, there was a need for rigorous analysis of their implications.
“For example, is it more effective for these new measures to be implemented by individual countries acting unilaterally, or are the measures more effective if introduced at the regional or global level?” he said.
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