Unam's annual report for 2001, which was tabled in the National Assembly recently, states that accumulated cash deficits of the previous years, together with a long-term lack of working capital, continue to create financial hardships.

Unam said that since 2000 it had made large budgetary reductions through freezing some posts while budget allocations for computers, laboratory equipment and maintenance had been heavily reduced.

Unam managed to cut its deficit by N$4,6 million - from N$8,1 million in 2000 to N$3,5m in the last financial year. In 1999, the deficit was N$26,5 million.

Among the reasons for the huge reduction in the deficit were an increase of approximately 25 per cent in the Government subsidy and an increase in income from tuition fees due to more student enrolments.

Around 80 per cent of Unam's income comes from subsidies, while tuition fees account for 15 per cent.

"It should also be noted that the University has successfully generated significant funds from international donors amounting to approximately N$15 million per annum. These funds are complementary to the Government support and make a major contribution to the smooth operations of the University," the report said.

More than 83 per cent of Unam's expenditure was on personnel. Unam said they were forced to give a modest salary increase to staff since wage levels had been below the market norm for some time.

"Given that the University operates a budgetary deficit, the [Government's] allocation process does not address this fact and the problem recurs annually. There is therefore a need to address the problem head on - treating the disease rather than the symptoms," the annual report said.

Unam's student intake has increased by 12 per cent with the numbers reaching more than 6 200 in 2001 up from 5 300 in 2000.

The number of academic staff increased slightly "to relieve highly stressed" faculties while the ratio of Namibians compared to non-Namibians increased from 59:41 to 68:32.

"Namibians now constitute 68 per cent of the academic staff complement. This drastic increase shows the University's commitment to the Affirmative Action policy. Female academics constitute 44 per cent of the academic staff complement," the report said.

In 2001, Unam produced 1 003 graduates - 29 per cent more than in 2000.

Vice Chancellor Peter Katjavivi said if financial constraints continued Unam may struggle to carry out its mission.

"Unless deliberate efforts are made to address this persistent situation, it will become increasingly difficult to train, attract and retain quality staff for the University's specialised activities. While we look at our Government, as the main financial supporter, the University continues to explore new partnerships to supplement the funding of some of her operations," Katjavivi said.

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