Shiimi’s plan on how to spend N$100 billion

Finance and public enterprises minister Iipumbu Shiimi tabled the national budget of N$100,1 billion in parliament on Wednesday, with a large portion being channeled into operations.

Shiimi allocated N$74,6 billion to the operational budget, reflecting an 8,8% increase.

Notably, N$1,7 billion is dedicated to a 5% civil service wage adjustment to safeguard purchasing power in the face of inflation.

The development budget received N$12,7 billion, which is a 58,1% increase compared to last year.

When it comes to development, the minister decided to channel N$2,5 billion into railway infrastructure. This includes the Kranzberg-Otjiwarongo and Sandverhaar-Buchholzbrunn sections, aiming to improve connectivity and facilitate trade.

Education infrastructure received N$970 million for the construction and renovation of classrooms and other school infrastructure.

This investment aims to address infrastructure inequalities and improve learning outcomes, particularly in rural and low-income communities.

Housing and informal settlements received N$700 million for programmes focused on upgrading informal settlements and large-scale land servicing.

“In line with our commitment to improve living standards and the quality of life of Namibians, funding to the housing secotor will remain a key priority over the medium term subject,”said Shiimi.

According to Shiimi, this initiative aims to improve access to proper housing and essential services, contributing to improved living standards and community development.

Water projects to address water scarcity concerns received N$2,2 billion.

According to Shiimi, this includes funding for the refurbishment of the Oshakati and Rundu water treatment plants, as well as the development of the second Ohangwena Aquifer Well Field.

“This includes a 1,1 billion in loan funded projects, an increase of more than 90% from the previous year ceiling,” said Shiimi.

Additionally, resources are dedicated to drilling boreholes, expanding pipelines and rolling out various rural water supply projects to ensure improved access to clean water across communities.

In response to regional energy supply challenges, Shiimi allocated N$200 million each year in the 2024/25 financial year and 2025/26 financial year to support the development of the 40MW Otjikoto Biomass Power Station.

This project aims to increase domestic generation capacity and enhance energy security in the medium term.

The projected budget deficit stands at N$8,9 billion, representing 3,2% of gross domestic product.

This level falls within the government’s targeted range, aiming to maintain a balance between economic growth and fiscal responsibility.