Geingob’s pension dream would cost N$15 billion
Finance and public enterprises minister Ipumbu Shiimi says it will cost at least N$15 billion to implement late president Hage Geingob’s wish to pay pensioners up to N$3 000 monthly.
Geingob, in his final televised address in December 2023, said he wanted to raise the monthly old-age grant from N$1 400 to between N$2 000 and N$3 000 before the end of his scheduled term of office on 21 March 2025.
Geingob passed away on 4 February, and his successor, President Nangolo Mbumba, is expected to serve the remainder of the term.
However, in the national budget recently tabled in the National Assembly, Shiimi increased the old-age pension by only N$200, bringing the new monthly figure to N$1 600. This has angered some pensioners, who had hoped Geingob’s wish would be granted.
Risk to education
Speaking to national broadcaster NBC last week, Shiimi said funding Geingob’s pension dream would be equivalent to the education ministry’s annual budget.
“If we are going to increase to N$3 000, that means we need close to N$15 billion that we have to find, so where will that money come from? That is almost equivalent to the ministry of education’s budget. It means we have to close all the schools – no child can go to school any more because this money has to come from somewhere,” Shiimi said.
Shiimi said the N$200 increment was what government could realistically afford.
Funding a N$3 000 monthly pension payout would have serious implications, he warned.
“If we have to fund the N$15 billion, it means we have to close the ministry of education. The whole education sector will come to a standstill because that is the money that we are going to give to the pension beneficiaries, so I think that is the context that we need to understand. The wish is there, but we do not have the resources,” he said.
“The value that we presented in parliament, that is the only money that we have, and if we are going to find an additional N$15 billion to give old age pensioners, it means we have to take it from somewhere," he said.
Social investments
Despite the modest increase in old-age grants, Shiimi still increased funding to the social sector by 12% by allocating N$44.3 billion.
“Investments in the social sectors remain imperative for a developing economy like Namibia,” he said at the time.
The minister also brought relief to taxpayers, increasing the income tax threshold for individuals from N$50 000 to N$100 000.
“This action will result in an injection of N$646 million directly into the pockets of taxpayers,” Shiimi said in his budget speech.
Geingob, in his final televised address in December 2023, said he wanted to raise the monthly old-age grant from N$1 400 to between N$2 000 and N$3 000 before the end of his scheduled term of office on 21 March 2025.
Geingob passed away on 4 February, and his successor, President Nangolo Mbumba, is expected to serve the remainder of the term.
However, in the national budget recently tabled in the National Assembly, Shiimi increased the old-age pension by only N$200, bringing the new monthly figure to N$1 600. This has angered some pensioners, who had hoped Geingob’s wish would be granted.
Risk to education
Speaking to national broadcaster NBC last week, Shiimi said funding Geingob’s pension dream would be equivalent to the education ministry’s annual budget.
“If we are going to increase to N$3 000, that means we need close to N$15 billion that we have to find, so where will that money come from? That is almost equivalent to the ministry of education’s budget. It means we have to close all the schools – no child can go to school any more because this money has to come from somewhere,” Shiimi said.
Shiimi said the N$200 increment was what government could realistically afford.
Funding a N$3 000 monthly pension payout would have serious implications, he warned.
“If we have to fund the N$15 billion, it means we have to close the ministry of education. The whole education sector will come to a standstill because that is the money that we are going to give to the pension beneficiaries, so I think that is the context that we need to understand. The wish is there, but we do not have the resources,” he said.
“The value that we presented in parliament, that is the only money that we have, and if we are going to find an additional N$15 billion to give old age pensioners, it means we have to take it from somewhere," he said.
Social investments
Despite the modest increase in old-age grants, Shiimi still increased funding to the social sector by 12% by allocating N$44.3 billion.
“Investments in the social sectors remain imperative for a developing economy like Namibia,” he said at the time.
The minister also brought relief to taxpayers, increasing the income tax threshold for individuals from N$50 000 to N$100 000.
“This action will result in an injection of N$646 million directly into the pockets of taxpayers,” Shiimi said in his budget speech.
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