One in three Namibians rely on grants

Nearly one in three Namibians receives a social grant, while roughly one in six is employed, according to data from the Namibia Statistics Agency and the 2026/27 budget documents.This translates to about 29% (900 000) of the population on social grants and about 17–18% (around 540 000) in employment.The figures presented by finance minister Erica Shafudah on Monday in the National Assembly show that the allocation for social grants increased by 1.5% from N$7.27 billion in 2025/26 to N$7.38 billion this financial year.Namibia has a broad social protection system covering multiple grant categories, including pensions for older citizens, vulnerable grants, adult and minor disability grants, maintenance grants, the Consolidated Basic Income Grant (CBIG), foster care support, and funeral benefits.According to Shafudah, social grants remained a major expenditure driver of the operational budget, with a 99% execution rate.The funding reached 954 388 beneficiaries across eight grant categories during the latest financial year.The largest share of spending went to the old-age grant, which accounted for N$4.14 billion and supported 224 589 beneficiaries.The vulnerable grant followed at N$1.05 billion for 240 620 beneficiaries, while adult disability grants totalled N$1.17 billion for 62 498 recipients.Other allocations included N$245.6 million for disability grants for minors (12 801 beneficiaries), N$390.9 million for maintenance grants (94 591 beneficiaries), and N$192.1 million under the Consolidated Basic Income Grant, reaching 27 392 people.Foster care grants amounted to N$25.7 million for 4 810 beneficiaries, while funeral benefits totalled N$51.7 million, covering 287 087 individuals.Shift from cash-based paymentsShafudah said the social grant budget allocation for 2026/27 is set at N$7.38 billion under the social protection services programme, up by about 1.5% from N$7.27 billion in the previous year.The programme accounts for roughly 57% of the total Vote 09 budget and will fund monthly disbursements averaging N$615 million to support vulnerable groups, including older people and persons living with disabilities.The minister described the transfers as a key instrument for poverty alleviation, income redistribution and strengthening household resilience.With Namibia’s population just over three million, nearly a third of citizens rely on state support, the figures show.This level of dependency stands in contrast to the size of the country’s working population.Workers vs. grant recipientsAccording to the Namibia Statistics Agency’s 2023 Labour Force Survey, released in 2024, about 546 000 people are employed in Namibia, with roughly 57% working in the informal sector.This means a large share of workers fall outside the formal tax net.The Namibia Revenue Agency collected about N$76.6 billion in revenue and grants by January 2026, against a total national budget of N$89.4 billion for the 2025/26 financial year.The budget itself was revised upward from about N$86.8 billion during the mid-year review, reflecting rising expenditure demands.Social grants alone account for roughly 8% of total government spending, ranking among the largest components of operational expenditure alongside education and health.Shafudah said the administration of social grant payments was transferred to the Ministry of Finance in March 2025 as part of efforts to consolidate the social protection system under one institution.However, the function remains shared with the Ministry of Gender Equality and Child Welfare, in line with policy guidance.She explained that the gender ministry retains responsibility for beneficiary identification, registration and oversight of the integrated social assistance system.At the same time, the finance ministry is responsible for payment execution and post-disbursement reconciliation.Government continues to administer grant payments through NamPost, with consultations conducted during the 2025/26 financial year to improve beneficiary awareness and encourage a shift from cash-based payments to formal banking channels, including the uptake of low-cost bank accounts.

One in three Namibians rely on grants

Comments

Namibian Sun 2026-04-02

Please login to leave a comment

One in three Namibians rely on grants

Comments

Namibian Sun 2026-04-02

Please login to leave a comment

Subscription Required to Access Content ×

Login

Subscription Required to Access Content