Psemas scoops N$3 billion of budget

Finance and public enterprises minister Iipumbu Shiimi has allocated N$3 billion to the Public Service Medical Aid Scheme (Psemas), compared to the N$2,7 billion it was allocated last year.

Shiimi announced this when he tabled the 2024/25 national budget in the National Assembly yesterday.

Public enterprises, which falls under the Ministry of Finance and Public Enterprises, has been allocated a budget of N$8,1 billion in the current financial year.

“A total of N$212 million has been budgeted for the Meat Corporation of Namibia (Meatco), inclusive of the settlement of their contingent liabilities. Meanwhile, N$300 million has been provided for TransNamib to support their day-to-day operations,” the minister said.

Shiimi added that N$88 million has been allocated for the completion of the Lüderitz Waterfront project.

The Agricultural Bank of Namibia (Agribank) got N$77 million for a dedicated subsidy programme to support farmers whose operations have been adversely affected by drought conditions, said Shiimi.

“Dear farmers, we have heard your cries,” he said.

The finance ministry has also put aside funds to explore mechanisms to accelerate employment creation in the economy.
Furthermore, the minister allocated N$200 million to the Namibia Student Financial Assistance Fund (NSFAF), bringing their total allocation to N$2,3 billion.

Shiimi said the government provided N$108,3 million for a 5% salary increment for the University of Namibia (Unam) staff.
In addition, Shiimi also outlined plans for increased spending, tax relief and a significant boost to infrastructure development.

He said N$1,2 billion revenue is expected from the anticipated dissolution of the Namibia Post and Telecommunications Holdings Limited (NPTH) and N$500 million from the sale of the remaining 9% shares in the Mobile Telecommunications Company (MTC).

Additionally, dividends are expected from public enterprises like the Bank of Namibia, Namibia Desert Diamonds (Namdia), and the Namibian Port Authority (Namport).

The budget also includes a one-off settlement of N$1,4 billion in legacy tax liabilities for selected public enterprises, including Unam, TransNamib and the Namibia Broadcasting Corporation (NBC).