Companies could get major tax deductions for hiring interns

Government has unveiled a new plan to tackle Namibia's high youth unemployment rate by offering employers up to N$50 000 in tax deductions as part of the newly launched National Work Integrated Learning (WIL) Policy 2025–2030.

According to the latest data from the Namibia Statistics Agency survey, an estimated 50% of youth aged 18 to 35 are unemployed.

The policy, officially launched last week by Prime Minister Elijah Ngurare at the Namibia Institute of Public Administration and Management (Nipam), aims to bridge the long-standing gap between education and employment by embedding practical workplace experience into formal learning.

“We are not merely launching a policy, but affirming a national commitment to our young people,” Ngurare said. “This is about ensuring that when a young person graduates, they do not only hold a certificate but also possess practical experience and workplace readiness.”

The WIL policy, spearheaded by the education ministry, introduces a structured national framework to standardise internships, apprenticeships and industrial attachments across universities and vocational training institutions.

For years, employers have raised concerns about graduates lacking hands-on experience, despite holding academic qualifications.

The new policy directly targets this mismatch by requiring institutions to integrate real-world training into curricula.

A key feature of the policy is its focus on private sector participation, widely seen as critical to its success.

To encourage this, government has introduced financial incentives, including the N$50 000 tax deduction for companies that take on interns or trainees.

In addition, firms that employ interns will benefit from support through the Namibia Training Authority (NTA) training levy, easing the cost burden associated with skills development.

Positive outlook

Education stakeholders have welcomed the move.

Dalia Mwiya, the director of technical and vocational education and training, described the policy as a “game-changer”.

“For too long, there has been a gap between theory and practice. This policy ensures that our youth leave the education system with both knowledge and practical experience,” she said.

Beyond urban centres, the policy also emphasises inclusivity, with placements expected to extend to rural areas such as Warmbad, Sesfontein and Kapako.

This approach, Ngurare noted, is essential to ensure equitable access to opportunities across the country.

Ngurare urged private companies to take part in the initiative.

“To the private sector, open your workplaces. To institutions, embed practical learning meaningfully. Together, we can create clear pathways from education to employment,” he urged.