Health ministry earmarks N$793m for hospital upgrades

Facing chronic staff shortages and ageing infrastructure, the health and social services ministry has set aside nearly N$793 million for hospital upgrades and equipment, and a further N$269 million to overhaul health worker pay.

Presenting the ministry's strategic overview and medium-term expenditure framework to parliament on Tuesday, the ministry's executive director Penda Ithindi said the investments aim to modernise public health facilities, strengthen frontline services and improve the retention of skilled healthcare professionals.

Among the ministry's largest investments for the 2026/27 financial year is a combined N$792.6 million allocation for hospital infrastructure and medical equipment upgrades.

The allocation comprises N$302.9 million for operational capital expenditure and N$489.7 million in development funding.

The funding will support "hospital upgrades, new clinics, dialysis and ICU expansion, and equipment renewal" nationwide.

The investment builds on ongoing efforts to expand healthcare infrastructure, including the construction of the 500-bed Windhoek District Hospital in Havana, which broke ground in May 2024 and is expected to be completed in 2027.

To tackle longstanding workforce challenges, the ministry has also set aside a once-off N$269 million allocation.

Ithindi described it as "the year's single largest new personnel cost line", saying it would fund "implementation of an improved public health remuneration structure".

The shortage of specialised health professionals is a key challenge, with government pledging to "recruit, train and retain health workers" while it finalises an attraction and retention strategy for critical health professions.

As of 30 June, the ministry had 19 575 staff in post against an approved establishment of 31 566 – just 62% of positions filled.

Decentralisation drive

The ministry has also introduced a new N$1.69 billion allocation for subsidies and current transfers to support decentralisation efforts.

Ithindi explained that the allocations are "due to the delegation of various functions to the regional governments", with the transfer expected to increase to N$1.79 billion by the 2028/29 financial year.

The new subsidy raises the share of subsidies and transfers in the ministry's budget from 2.8% to 13.1%, making it the single largest structural change contained in the current medium-term expenditure framework.

The ministry formally handed over delegated health functions to regional councils in November 2025 to strengthen regional governance, improve accountability and bring services closer to communities.

Decentralisation efforts will continue through stronger planning, budgeting, procurement and financial management at regional level, supported by recruitment, training and closer collaboration with regional councils, local authorities and other stakeholders.

Ithindi said despite ongoing challenges, the ministry remains determined to ensure additional resources translate into better outcomes for patients.