TIRI MASAWI
The Cabinet has handpicked the Social Security Commission (SSC) to take over the overall management and administration of Namibia’s N$3.9 billion Public Service Medical Aid Scheme (Psemas).
Psemas is a state-owned medical aid scheme for Namibian public servants, covering healthcare costs and giving access to private medical services. It is funded by both government and employee contributions.
Ministry of Finance spokesperson Wilson Shikoto told Namibia Business Review on Friday that a Cabinet directive has been given to SSC to prepare for the takeover. He, however, said nothing has been finalised yet.
“The Cabinet directed the Ministry of Finance and relevant stakeholders to explore and assess the Social Security Commission’s viability to administer and manage claims for the Public Service Employees Medical Aid Scheme (Psemas),” Shikoto said.
He added, “The Social Security Commission is not yet appointed. The directive is only to assess its viability and capability of administering the scheme.”
If implemented, the takeover will see SSC managing the scheme, which caters to about 120,000 civil servants. The scheme receives members and annual government subsidies exceeding N$3.9 billion and provides health benefits for public service employees and their dependents.
GETTING READY
An internal memo dated 26 January 2026, circulated to SSC staff by executive officer Milka Mungunda, also confirms the Cabinet decision.
“High-level stakeholder engagement and consultations are at an advanced stage following a Cabinet directive to SSC to assess the readiness and capability to take over the claims and management function of Psemas,” Mungunda said.
She added, “This development presents a potential expansion of our mandate and service delivery role. It also presents opportunities for job security, new skills acquisition, possible new career paths for staff, and employment creation for Namibians at large. We should approach this process with optimism, readiness, and a shared vision for a stronger SSC.”
Apart from Psemas, President Netumbo Nandi-Ndaitwah has also directed SSC to implement the National Medical Benefit Fund (NMBF). The NMBF is a public healthcare fund that helps cover medical expenses for workers and their families, making healthcare more accessible and affordable. It aims to extend coverage even to low-income earners such as taxi drivers and vendors.
Mungunda told Namibia Business Review that the proposed changes are part of a raft of measures expected to ensure all Namibians have access to affordable, quality healthcare.
“When it comes to the issue of the National Medical Benefit Fund, we are working with stakeholders from the health ministry as well as the finance ministry to find ways of managing the financing of this process,” she said.
She added, “Again, this is something that has been pending since 1990. It is still a process that we are going through, and we are finding a solution to it.”
Mungunda said managing the National Medical Benefit Fund requires a funding model to meet the implementation period in the first quarter of the year.
She continued, “When all conditions have been met and plans put in place for such an implementation, we will communicate how this will be done. At the moment, we are still consulting with all relevant stakeholders, including unions and the line ministry. We also need to consider the capacity required to manage this in the future.”
TEETHING PROBLEMS
In August last year, Namibia Private Practitioner Forum (NPPF) chief executive Jürgen Hoffmann said Psemas was facing potential challenges as private healthcare providers continue to withdraw from it. This was due to alleged outdated tariffs, rising operational costs, and “regulatory paralysis.”
At the time, Hoffmann said that without urgent reform, rural communities and patients in need of mental healthcare and general medical care risked being left stranded as services become increasingly unsustainable.
He added that reimbursement rates under Psemas are still based on tariffs set by the Namibian Association of Medical Aid Funds in 2014, despite steep increases in the cost of living and medical supplies over the past decade.
Finance Ministry spokesperson Shikoto said the process is being implemented to ensure transparency, accountability, and disciplined financial management.
“This will be determined once the feasibility exercise is concluded. The procurement for a Psemas administrator is ongoing,” Shikoto said.
The scheme has been undergoing reform since 2021, when the government appointed a technical committee of public and private sector officials to assess its challenges and propose reforms for optimal restructuring.
PROCEED WITH CAUTION
Opposition political parties have expressed cautious support for the policy change. Popular Democratic Movement (PDM) President McHenry Venaani said the move to appoint SSC to manage Psemas must be carried out with due diligence and safeguarded from potential manipulation by politically exposed persons.
“If the government has finally taken the decision to implement this policy in principle, we support it. It is something that has always been part of our political manifesto to have the SSC capacitated to take over such a role,” Venaani said.
He added, “We just hope that this will be done in a very open and transparent manner that does not raise concerns. There is a need for gradual implementation to ensure due diligence. It would be unfortunate if it is hastily implemented and fails the civil service in the process.”
Venaani also pointed out concerns about SSC’s capacity. “There are questions about the ability of Social Security to manage such a scheme. Those must be addressed before rushing with implementation.”
He warned that in the past, Social Security had been abused at the defunct SME Bank under the pretext of funding ‘struggle kids.’
Independent Patriots for Change spokesperson Immanuel Nashinge also called for careful implementation.
“Generally, such a decision, if done with wide consultations and protected from corruption, is supported. It is important to ensure SSC has the capacity to manage such a fund,” Nashinge said.
He added, “There is also a need to make sure that SSC is not given too many responsibilities at one time.”
LEFT OUT
Unionist Kavihua Mahongora, who represents a significant number of teachers in the civil service, said they were not consulted on the process.
“We have not yet been engaged on this issue. Unless they are speaking to unions in the broader sense, we are not aware of this development. This is the challenge with some of the decisions taken by this administration. Yhey are done secretly without wide consultation. This process is an important one that needs all stakeholders, especially those affected, to add their input,” he said.
Mahongora also called for capacitation of SSC workers to handle such a large fund.
“There is a lot of money involved, and one wonders whether SSC has the ability to manage such funds. One also wants to know what has been done to give them the skills and abilities needed for this going forward. We encourage the government to take time to implement this in the best interest of our members,” he said.
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