Namibia, a nation grappling with a critical situation due to poverty, income inequality and unemployment, faces a daunting triple threat that will further decay its human capital.

According to the World Bank, Namibia has a 64% poverty rate, with over 1.5 million people or 50% of the population suffering from hunger. 

This highlights that most of the population lives below the poverty line, making it concerning for a country classified as upper-middle income.

Namibia is notorious for being one of the most unequal countries globally, with a Gini coefficient of 0.597. 

The country has various minerals and economic resources, but a small portion of the population holds the largest share of wealth. 

The youth (who make up 70% of the total population) unemployment rate is staggering at 43.4%, making it the highest in the Southern African Development Community region.

These statistics paint a grim picture of Namibia’s ‘Triple Threat’. 

Human capital is crucial for an economy, especially one relying heavily on resource extraction. 

However, with trends of poverty, income inequality and unemployment, Namibia’s human capital will not be as productive as desired.

Poverty restricts access to quality education, with children from poor families forced to drop out of school due to their inability to afford it, inadequate teaching and poor facilities.

 Malnutrition also negatively impacts cognitive development and learning capacity.

The triple threat affects mental health, with poverty and unemployment leading to stress, anxiety, depression and post-traumatic stress disorder. 

Namibia has one of the highest suicide rates in Africa.

Unemployment and poverty lead to a lack of resources for skills development and training programmes. 

Individuals trapped in these circumstances cannot invest in education or training to improve their skills and employability.

A universal basic income grant (BIG) is the solution to these issues. 

The BIG pilot study in Otjivero showed significant impacts on human capital development. 

The introduction of a BIG led to an increase in economic activity, with recipients increasing their work hours, and starting their own businesses.

The grant also improved nutrition among children, reducing underweight rates from 42% to 17%. 

School dropouts decreased by 42%, and learners returned to school. 

A universal BIG can empower individuals to upscale themselves through education and training, developing Namibia’s human capital.

The grant is an economic enabler, helping create a strong and productive workforce, increasing the gross domestic product and individual purchasing power. 

It is also a social enabler, amplifying individual dignity by enabling them to lift themselves out of poverty through skills development and entrepreneurship.

Implementing the grant is crucial for Namibia to fight the triple threat, and improve its people. 

It is high time for Namibia to implement a universal BIG to empower its human capital, and improve its economic outlook.

*Tjipura Tjipura is an economics student at the Namibia University of Science and Technology, and a Basic Income Grant champion.