Rudolf Geiseb
Finance minister Erica Shafudah has proposed the allocation of N$7.2 billion towards the social grants’ management programme.
This was contained in a motivation for the budget allocation she presented in the National Assembly last week Tuesday.
The programme is among the nine major projects the ministry has lined up for the 2025/2026 financial year.
The programme aims to improve the payout systems for social grants during the 2025/26 financial year.
“Investment here supports automation, efficiency and the delivery of social protection to the most vulnerable, reinforcing the government’s commitment to equity and inclusive growth,” she said.
The social grants to be disbursed during the year were broken down as – old age grants (N$3.7 billion), funeral benefits (N$47.8 million), conditional basic income grant (N$65.8 million), vulnerable grants (N$877 million), foster care grants (N$36.9 million), maintenance grants (N$417 million), disability grants for adults, 16 and above (N$955 million), and disability grants for minors, under 16 (N$152 million).
The ministry’s overall proposed budget allocation landed at N$14.6 billion.
This is to pursue the ministry’s strategic objectives and ensure the effective execution of its constitutional mandate and policy responsibilities.
This is in addition to an amount of N$13.7 billion earmarked for debt servicing, which is deemed appropriate in terms of Section 10(1)(3) of the State Finance Act (Act 31 of 1991).
“To facilitate efficient implementation and promote accountability, the programmes are further structured into 18 main divisions, each entrusted with specific functional responsibilities aligned with the ministry’s broader fiscal and economic policy agenda. The proposed allocations are therefore not only a reflection of operational needs but also a strategic investment in institutional capacity, public finance reform, and national development priorities,” Shafudah told Parliament last Monday.
Youth Fund
The ministry proposed an allocation of N$257 million towards the establishment and operationalisation of the National Youth Fund.
This fund is aimed at promoting youth empowerment through targeted financial and non-financial support mechanisms.
The minister said its operational policy framework, currently under development, will be finalised during the current financial year.
“This framework will outline eligibility criteria, governance structures, and funding modalities. The initiative reflects the government’s commitment to creating sustainable economic opportunities for the youth and driving inclusive growth through strategic public investment,” she said.
Shafudah further allocated a total amount of N$87.7 million for the ministry’s development budget for the 2025/2026 financial year.
Of this, N$59 million will be for finalisation of the establishment of a One-Stop Border Post (OSBP) at the Trans-Kalahari border post.
“Feasibility studies for the establishment of OSBPs at Katima Mulilo and Oshikango are also planned for the 2025/2026 financial year.
In addition, an amount of N$28.8 million has been allocated for supporting feasibility studies for the renovation and upgrading of strategic airports across the country. These include the Lüderitz and Walvis Bay airports, to enable Namibia to fully leverage opportunities emerging from the growing green hydrogen industry.
“Studies will be undertaken for the Rundu and Katima Mulilo airports to improve regional air connectivity and support the growth of our tourism sector. A feasibility study will be carried out to assess the development needs of a second passenger terminal at Hosea Kutako International Airport. This will ensure we are adequately prepared to meet increasing passenger volumes and to enhance the efficiency and quality of service at our primary international gateway,” she highlighted.
Economic policy
Economic policy, a programme that encompasses the tax policy unit and economic policy advisory services, was allocated N$26.9 million.
The minister said adequate funding ensures evidence-based policymaking and timely policy interventions that guide the national economy.
In line with international best practices, under the same project, the ministry proposed an allocation of N$2 million each to Fitch Ratings and Moody’s Investors Service.
“Engaging a minimum of two independent credit rating agencies is a globally recognised standard that ensures balanced, objective and credible assessments of the country’s macroeconomic and fiscal outlook,” she justified.
The revenue management programme (N$177 million), anchored by the Namibia Revenue Agency (NamRA), drives domestic resource mobilisation.
Investment in this programme is essential for expanding the tax base, modernising tax administration, and reducing the tax gap through automation and compliance enhancements, she added.
Thirdly, the government expenditure management programme, with a proposed allocation of N$632 million, is delivered through three specialised directorates within the Treasury Department, each playing a pivotal role in ensuring fiscal discipline, effective expenditure tracking, and prudent cash flow management.
Under the programme, an allocation of N$350 million is earmarked for contingency provision, which aims to ensure the government is prepared to address unforeseen, critical, and unavoidable expenses that may arise.