MP suggests dividends as source of free tertiary education funding

Swapo National Council member Gerhard Shiimi has suggested that NamRA, and dividends from Epangelo Mining, De Beers, Namdia, Namibia Wildlife Resorts (NWR), Windhoek Country Club, and the Gambling Board of Namibia can fund free tertiary education.Shiimi represents the Omusati Region and serves as the Swapo Party's Chief Whip. President Netumbo Nandi-Ndaitwah announced during the state of the nation address in March that the government will subsidise 100% tertiary education from 2026.The Institute for Public Policy Research (IPPR) states in its quarterly economic review for January-March 2025 that the government would need N$5 billion per year to fund free tertiary education. Although IPPR commends the government for committing to free higher education and vocational training, the think tank said it is not clear where the funding will come from.In his contribution to the Appropriation Bill, Bill 6 of 2025, in the National Council this week, Shiimi said that the initiative of free tertiary education is an excellent idea.Shiimi called on the government to ensure that all efforts are dedicated towards maximum revenue collection from all streams to remove financial hindrance.Until now, Nandi-Ndaitwah has not said how the government will fund the 100% free tertiary education subsidy. It is also unclear how much the government would need to fund the proposed free education. But Shiimi said Namibia has a lot of key revenue collection streams such as NamRA, Epangelo Mining, De Beers, Namdia, NWR, Windhoek Country Club, and the Gambling Board of Namibia.Shaky funding sourcesSome entities Shiimi mentioned, such as Epangelo Mining, have not declared a single dividend to the government since their inception, while others such as Debmarine have been affected by De Beers' move to keep rough diamond production at low levels. Epangelo Mining, whose role is to carry government's interest in the mining sector, has had to borrow money to acquire shares.For instance, Debmarine Namibia reported a 38% decline in revenue to N$8.5 billion for 2024, driven by falling diamond prices and reduced production. The company produced 2.234 million carats of rough diamonds, a 4% decrease from the 2.327 million carats mined in 2023, reflecting market-driven adjustments.Similarly, Namdia declared N$300 million for the same period, while the Namibia Diamond Trading Company (NDTC) paid the state N$100 million in dividends in 2023.The Windhoek Country Club Resort recently handed over a N$25-million dividend to the government through the finance ministry.NWR has been running losses and could only declare itself debt-free two years ago. The company could not even pay taxes. While NWR's policy says the entity aims to pay dividends, they may need to retain profits for other purposes like training, maintenance, or business expansion. Fears of diverting funds from infrastructureThese figures suggest that the government could potentially redirect these funds to cover the expenses of free tertiary education. There are fears, however, that this approach might divert resources from critical infrastructure development, which is essential for industrialisation, in favour of producing more graduates already facing challenges in securing employment.Shiimi welcomed the Namibian Students' Financial Assistance Fund integration into the education ministry, describing the move as the first step towards free tertiary education."This wonderful initiative must be welcomed with all applause as it marks the beginning of a relieve on parents who struggle and have sleepless nights in search of funds to send their children to Universities and other institutions of high learning, next year, that struggle shall be no more, dear parents. "Our collective call is start early to prepare so you meet the Ministry halfway in providing key needs for your children," Shiimi said.

MP suggests dividends as source of free tertiary education funding

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Namibian Sun 2025-07-01

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MP suggests dividends as source of free tertiary education funding

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Namibian Sun 2025-07-01

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