Tiri Masawi
President Netumbo Nandi-Ndaitwah has asked pensioners to be patient as the government works to deliver the N$3 000 monthly grant she promised in 2024.
Nandi-Ndaitwah made the promise while she was Swapo’s presidential candidate in 2024, saying she would make it a reality once she assumed office.
At the time, she said: “If elected president of the Republic of Namibia, I commit to fulfil the wish of President Hage Geingob to increase the old age pension to N$3 000.”
Former president Geingob had expressed his wish to increase pension grants during his last New Year’s message, saying: “Before I leave office, I hope that the old-age pension grant would be increased to N$2 000, or maybe N$3 000.”
Two years later, Nandi-Ndaitwah says the government is facing competing priorities that make the promise difficult to implement immediately.
“The government remains fully aware of the challenges facing our senior citizens, many of whom continue to support their families and communities even in retirement. Their welfare remains an important priority for the President and the Government,” presidential spokesperson Jonas Mbambo told Namibia Business Review yesterday. .
He added: “We kindly ask for patience and understanding as these matters are approached responsibly and with the long-term interests of the country in mind.”
Mbambo said that the country must balance social grants with other urgent national needs. “The president’s commitment to improving the living conditions of pensioners remains unchanged. The government will therefore continue to review social support measures over time, in line with economic realities and fiscal sustainability,” he said.
BUDGET FALLS SHORT
The national budget tabled last week by finance minister Ericah Shafudah only increased the monthly pension by N$100, from N$1,600 to N$1,700 starting in August—far below the promised N$3 000.
According to the Basic Income Grant Coalition, achieving the N$3 000 pension would cost at least N$3.3 billion a year.
In contrast, the national budget allocated N$58 million for salary and benefit increases for Public Office Bearers, who include members of Parliament, regional councils, ministers, and judicial officers.
The budget also gave civil servants a 5% pay increase, a flat N$700 for those in higher grades, a 7% transport adjustment for lower-level staff, and removed a 5% medical aid levy so employees can use public healthcare. About 61% of the total operational budget was dedicated to social sectors like education, health, and safety nets.
UNREALISTIC PROMISE
Labour research expert and social justice activist Herbert Jauch told Namibia Business Review that the N$3 000 pension promise is not feasible under current fiscal conditions.
“The promises of pension increases to N$3 000 a month are quite unrealistic and we have seen now that in terms of financial policy and continuation of what we had before, it is also disappointing. What is more challenging is how we are failing to deal with indirect illicit financial flows, largely by mining companies,” he said.
He added: “To achieve the resources needed for redistributive interventions like higher pensions we would need a monumental shift in the expenditure pattern and unfortunately they are at this point not practical in the fiscal space we are in. There are also no signs of this happening in the near future.”
Government debt is projected to rise from N$174.6 billion in 2025/26 to N$217.3 billion by 2028/29, representing about 67.5% of GDP, with financing needs peaking at N$19.2 billion in 2026/27.
NOT MUCH TIME LEFT TO WAIT
Development economist Dirk Haarmann of the Economic Policy Research Institute said the promise was largely political.
“From a political point of view, it is, unfortunately, the reality that promises are broken or not fulfilled; therefore, many people were not surprised by it. Last year, the president justified this broken promise by saying that the current priorities are youth development, and hence pensioners had to wait a bit longer. This is, of course, a bit sarcastic as pensioners naturally might not have much time left to wait,” Haarmann said.
He added that pensions are vital for households, especially in rural areas, often supporting entire families. “The postponement of this promise should be taken very seriously, especially since it is well-documented and a known fact that pensioners often provide the only regular income for entire households, supporting grandchildren and other family members alike,” he said.
Haarmann explained that even if the government raised the pension to N$3 000, it would cost billions for the 176 780 pensioners currently receiving the grant.
“While a large sum, he said it would be affordable and have strong developmental benefits, including reducing child malnutrition, affordability is a question of priorities. In this context, no one is asking for luxury from the government, but the elderly deserve decent promises to be kept,” he said.
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