Dakar, 2008 1

Government of the Republic of Namibia

Presentation to Experts Group Meeting On Social Protection In Africa

Dakar, Senegal

Monday-Wednesday, June 09-11, 2008

Towards Better Performance

Contents

•Namibia at a glance

•NDP 3 Targets

•Legislative Framework

•Role

•Programs

•Overview of Processes

•Challenges

Dakar, 2008 3

Namibia at a glance• Located on western side of southern

African Continent• Surface Area: 823 680km² with close

to 2 million inhabitants• 13 Ethnic cultures (rich cultural

diversity) • Political stable and Good Governance• Borders: Angola, Zambia, Zimbabwe,

Botswana, South Africa and the Atlantic Ocean

• Driest Country in Southern Africa• 43 000 km of surfaced road• Comparative Advantages: Vast open

spaces, diverse wildlife and biodiversity, minerals and meat and fish products

Dakar, 2008 4

After Independence (1990)Namibia Implemented:

•TNDP:1990-1994

•NDP1:1995/1996-1999/2000

•NDP2: 2001/2002-2005/2006

•Currently, NDP3: 2007/2008-2011/2012

2007 Preliminary results show that (GDP) grew at 3.9% against the target of 4.1%;

•According to latest information Unemployment is 36.7%;

•Poverty at 28%;

•Extreme poverty 4% and inequality

•We experience large rural-urban discrepancies in unemployment rates and poverty incidence;

Namibia at a glance continue

Dakar, 2008 5

•Access to potable water 88.5%;

•Experience an increase in the infant (46), child (69)and maternal (449)mortality rates and as a result there is a decline of life expectancy at birth

•Life expectancy at birth reached a low of 49 years;

•HIV/AIDS Prevalence Rate is 19.9%, not very good for a population of 2 million

Namibia at a glance continue

Dakar, 2008 6

NDP3 Development Targets

Socio-economic Indicator NDP3 Target

GDP (% per annum) 5-6.5Relative poverty (% households) 20Extreme poverty (% households) 2 Primary school enrolment rate (%) 99Access to safe drinking water (% households) 95

Access to improved sanitation (% households) 65

Life expectancy (years) 51Infant mortality rate (deaths/ 1,000 live births) 38

Child mortality rate (deaths/ 1,000 live births) 45

Maternal mortality rate (deaths/ 100,000 live births ) 265

Employment (% per annum) 2.6-3.2HIV prevalence rate

15-19 years old20-24 years old

8126

Dakar, 2008 7

Legislative Framework

Constitution of Namibia, 1990 Office of the PresidentOffice of the Prime Minister

Medical Aid Funds Act, 1993Ministry of Finance ~ Responsible for budgetary allocation of social assistance programs

Labour Act, 2008; National Pensions Act, 1992 Ministry of Labour and Social Welfare ~ Administration of Old Age and Disability Grants

Social Security Act, 1994; Employees Compensation Act, 1941 Social Security Commission ~ Maternity -, Sick, Death, Employment Injury, and in future, Pensions, Medical and Development Funding

Child Status Act, 2008; Children’s Act, 1960 Ministry of Gender and Child Welfare ~ Administration Foster care, Child and Orphans grants

Veterans Act, 2008Ministry of Veterans Affairs ~

Dakar, 2008 8

Pension Funds Act, 1956 Namibia Financial Institutions Supervisory Authority Act, NAMFISA

Motor Vehicle Accident Fund Act, 2001

MVA Fund ~ Compensation to victims of motor vehicle accidents in accordance with the law of derelict.

Maintenance Act; Married Persons Equality Act Ministry of Justice

Ministry of Health and Social Services ~ Social Services for the Disabled and destitute, Family Life Empowerment Program, Alcohol and substance abuse, Developmental Social Welfare Policy Development

Ministry of Regional, Local Government and Housing ~ Support to housing Initiatives (low cost housing and build together programs, if they fit the definition)

Ministry of Lands and Resettlement -To focus more on programs that fit the

definition of social welfare, securing land for rural landless through resettlement program

Legislative Framework

Dakar, 2008 9

Legislative Framework• NATIONAL PENSIONS ACT (10 of 1992)

To provide for national pensions to be paid to aged, blind and disabled persons and to provide for maters incidental thereto.

• VETERANS ACT (8 of 2008)

To provide for the establishment of the Veterans Trust Fund; to Provide for the management and control of the said fund; to provide for the establishment and constitution of the war veterans

Subvention Administration Board; to provide for the registration of veterans and dependants of deceased veterans; to provide for the payment of subventions to veterans and dependants of

deceased veterans;

• CHILD STATUS ACT of 2006/ CHILDREN’S ACT (33 of 1960)

To provide for equal status to both parents in cases of custody, placement and responsibilities; To provide for the care and protection of a child; payment of places of safety allowance,

maintenance grant and foster parent allowance

• SOCIAL SECURITY ACT (34 of 1994)

• To provide for the payment of maternity leave benefits, sick leave benefits and death benefits to employees and to establish for that purpose the Maternity Sick Leave and Death Benefit Fund; To provide for the payment of medical benefits to employees and to establish for that purpose the Medical Benefit Fund; To provide for the payment of Pension benefits to retired employees

and to establish for that purpose the National Pension Fund; To provide for the funding of training schemes for disadvantaged, unemployed persons and to establish for that purpose the

Development Fund;

Dakar, 2008 10

Social Welfare/ Protection Role

Goal

To provide affordable, accessible and available quality social welfare/ protection services to eligible members of our society.

Mission Statement

The mission of the social welfare/ protection sub-sector is to strive towards a socially stable and forward looking Namibia, in which the disparities and inequalities of the past are being corrected; where all human rights and fundamental freedoms are ensured; and where the Government in cooperation with affected communities and all other stakeholders work together to make the best use of the country’s resources for socio-economic development and the well-being of all Namibians.

Dakar, 2008 11

Social Welfare/ Protection Programs

•Old Age Grant•Disability Grant•Funeral Benefit•Places of Safety Allowance•Special Maintenance• Maintenance Grant•Foster Parent Allowance•Veterans Subvention•Maternity Leave & Sick Leave•Death Benefit•Pension and Medical Aid Funds•Skills Development Fund•ECF (Employee’s Compensations Fund)•MVA

Dakar, 2008 12

Old Age Pension (OAP)

• Amount:– N$450 per month Rate US$1 = N$ 7.70

• Requirements:– 60 years +– Namibian citizenship / permanent residents if not born

in Namibia– Applicant must reside in Namibia

Dakar, 2008 13

Disability Grant (DG)

• Amount:– N$450 per month Rate US$1 = N$ 7.70

• Requirements:– 16 years or above and medically diagnosed by a State

doctor as being temporarily or permanently disabled (blind people included)

– Persons with full-blown AIDS as certified by a medical doctor

– Namibian citizenship / permanent residents if not born in Namibia

– Applicant must reside in Namibia

Dakar, 2008 14

Funeral Benefit

• Value:– N$2200 Rate US$1 = N$ 7.70

• Requirements:– Must be a recipient of Old Age or Disability Grant

• The Package include:– A standard Citizen Coffin– A Grave site (nominal cost)– Programme for the Funeral Service– Burial & Preparation Services– Transport within Regions– The Undertaker will guide and help you through the

whole process

Dakar, 2008 15

Place of Safety Allowance• Amount:

– N$10 per child per day Rate US$1 = N$ 7.70• Requirements:

– Person or institution, who is taking care of a child:• who is under the age of 21 years• who is placed in a place of safety by a Commissioner of Child

Welfare in terms of the Children’s Act No 33 of 1960 or the Criminal Procedure Act No 51 of 1977

• Where to apply?– Office of the Magistrate. The Form has to be completed and signed

by the claimant and Commissioner of Child Welfare• Documents needed:

– Place of Safety grant claim form– Original order/s of detention

• Method of Payment:– Cheques

Dakar, 2008 16

Special Maintenance Grant (DG for children) (SMG)

• Amount:– N$200 per month Rate US$1 = N$ 7.70

• Requirements:– Children below 16 years and medically diagnosed by a

State doctor as being temporarily or permanently disabled (blind people included)

– Children with full-blown AIDS as certified by a medical doctor

– Namibian citizenship / permanent residents if not born in Namibia

Dakar, 2008 17

Maintenance Grant (MG)• Amount:

– N$200 for first child plus N$100 for every additional child – Maximum of 6 children in total Rate US$1 = N$ 7.70

• Requirements:– Biological parent with child under the age of 18, whose

gross-income is not more than N$1000 per month and – Whose spouse (mother/father of the child)

• is receiving an old age or disability grant or• has passed away or• is serving a prison sentence of 3 months or longer

– If child is older than 7 years, he/she needs to attend school

– Namibian citizenship / permanent residents if not born in Namibia

Dakar, 2008 18

Foster Parent Grant (FPG)

• Amount:– N$200 for the first foster child plus N$100 for every

additional foster child Rate US$1 = N$ 7.70

– Period of pay out:• Grant is payable as from date of application until the

advice for the termination of the grant is received from the Social Assistance Clerk

• Requirements:– Any person who, whether for reward or otherwise

undertakes the temporary care of any child, who has been placed in his/her custody in terms of section 31(1)b or section 50(1) of the Children Act, 1960 (Act No. 33 of 1960)

– Namibian citizenship / permanent residents if not born in Namibia

Dakar, 2008 19

Veterans Subvention (VS)

• Amount:– N$2,500 per month

• Requirements:– 55 years +– Namibian citizenship – Participate in the struggle that led towards

independence in 1990– Applicant must reside in Namibia

Dakar, 2008 20

ATTESTATION(District & Regional Level)

VERIFICATION(Regional Level)

APPROVAL(National Level)

DATA ENTRY(Data Administration)(Office of the Prime Minister)

DISTRIBUTION & Payment Methods

(Office of the Prime Minister)

OVERVIEW:

FROM APPLICATION TO PAYMENT

Dakar, 2008 21

Electronic payment files to effect payment:• Cash• Post Offices• Nampost Savings Bank• Banks• Welfare Institutions

DISTRIBUTION &PAYMENT METHODS

(Office of the Prime Minister)

Data Entry

Dakar, 2008 22

Cash Payout System

• Recipient gets a Smart Card (Includes the recipient fingerprint, photo and ID number as well as a history of payouts)

• Payment by biometric verification process• The recipient can authorize one person

(Procurator), who can collect the grant on the recipient’s behalf

• The money needs to be collected at least every 3 months or else the payout is stopped

Dakar, 2008 23

Post Office

• Recipient may choose to receive direct payment via RIPOSTE system over the counter

• Recipient gets a Smart Card (Includes the recipient pin code, photo and ID number as well as a history of payouts) enhance purchases at selected retail stores

• The recipient can authorize one person (Procurator), who can collect the grant on the recipient’s behalf

• The money needs to be collected at least every 3 months or else the payout is stopped

Dakar, 2008 24

Banks

• Direct transfer to beneficiary’s bank account on a monthly basis

• The money needs to be collected at least every 3 months or else the payout is stopped

Dakar, 2008 25

Welfare Institution

• One single cheque printed for all beneficiaries residing or receiving care giving service at institutions

• Head of institution responsible for transferring payment to each individual

• The money needs to be collected at least every 3 months or else the payout is stopped

Dakar, 2008 26

Social Security Funds

• Every employer must register all employees with the Social Security Commission in terms of the Social Security Act, 1994.

• Every employee’s contributions are equal to 0.9 % of his/her remuneration to the Maternity Leave, Sick leave and death Benefit Fund.

• Contribution may, however not be less than N$ 2.70 or more than N$ 54.00 per month.

• An employer contributes the same amount as the employee.

• Employers are also required to register with Employees Compensation Fund.

Dakar, 2008 27

Maternity Leave (ML)

• Maternity leave benefits cover a 12 week period i.e. 4 weeks before the expected date of delivery and 8 weeks after birth.

• A female employee on maternity leave qualifies for 100 % of her remuneration with a minimum of N$ 300.00 and a maximum of N$ 6 000.00 per month.

• All maternity claims must be submitted to the Commission not later than 7 days before the expected date of confinement.

Dakar, 2008 28

Sick Leave (SL)

• Sick leave benefit is payable after an employee has exhausted the leave period given under the Labour Act or employment contract.

• Sick leave benefit equals 75% of an employee’s remuneration with a minimum of N$ 250.00 and a maximum of N$ 4 750.00 per month for the first six months, hereafter 60 % of the remuneration for further 18 months.

• Sick leave claims must be submitted within 30 days after expiry of paid sick leave , as provided under the Labour Act.

Dakar, 2008 29

Death Benefit (DB)

• A single lump sum payment of N$ 3 500.00 is payable upon the death of a fully paid up member as well as upon retirement or permanent disablement.

• Claims for death-, retirement – or permanent disablement benefit must be submitted to the Commission within 30 days after the member has died, retired or become disabled.

Dakar, 2008 30

Pension & Medical Funds

• These two Social Security Funds are still to be introduced

• The membership/exemption to the Pension and Medical Funds are thorny issues among the stakeholders

• The type of benefits to be offered by the two funds also need to be agreed upon.

• Namibia has a number of private funds that currently provide commercial coverage for pension and medical aid.

Dakar, 2008 31

Social Development Fund (DF)

• Benefit:– Applied for funding of training and employment schemes

for the benefits of the un-employed and under employed persons.

– Also applied for the financial aid (loans and bursaries) for students enrolled at tertiary institutions.

• Contribution:

– A percentage determined by the Commission from other SSC funds as transfer to Dev. Fund

– Appropriation by Parliament– Any other sources, e.g. donations, interest income, etc.

Dakar, 2008 32

Employee’s Compensation Fund (ECF)

• TYPES OF BENEFITS UNDER THE E.C.F.a) Medical expenses I.r.o. injured employees.b) Transportation of an injured employee.c) Temporary Total Disablement.d) Permanent disablement compensation.e) Funeral/burial expenses.f) Payment of partial dependency lump sums.

g) Compensation to survivors – Accident Pensions

Dakar, 2008 33

Challenges• Fragmented Social Welfare/ Protection services• Duplication/ mandate shifted yet activity still

carried out at old entity• Perceptions about social welfare/ protection -

significance• Dissolution staff members• Policy legal and regulatory framework• Funding• Transport/ reaching the isolated • Existing Private Pension/ Medical Funds

Dakar, 2008 34

Dakar, 2008 35

COMMENTS COMMENTS ……QUESTIONS QUESTIONS ??

CONCERNCONCERNS !S !