1. Government of the Republic of Namibia Towards Better Performance

2. Presentation to Namibia Social Protection Conference Overview of Social Protection in Namibia 7-9 July 2015

3. Content Background ILO Social Security Conventions Legislative Framework Namibia Social Protection Systems Non Contribution schemes Grant Values and Coverage Social Protection as % of GDP Social Protection Mandates Challenges Recommendations

4. Background Social protection Programs essential for fight against poverty and Inequality International Covenant on Economic, Social and Cultural Rights Article 9: The States Party to the present Covenant recognizes the right of everyone to social security, including social insurance

5. Background Universal declaration of Human Rights Article 22: Every one as a member of society, has the right to social security Article 25: Every one has the right to a standard of living adequate for the health and well-being of himself and of his family The eight Millennium Development Goals (MDGs) ILO Recommendation 202 on Social Protection Floor

6. Background AU’s Social policy Framework (2009) – “Social protection includes social security measures and furthering income security and an integrated policy approach that has strong development focus, such as job creation Article 95, of Namibia Constitution - “the state shall actively promote and maintain the welfare of people by adopting inter alia, policies aimed at the assurance that senior citizens are entitled to and do receive a regular pension, adequate for the maintenance of a decent standard of living and the enjoyment of social and cultural opportunities.

7. The ILO Social Security Conventions Social security (Minimum Standards) Conv. 1952 (102) Equality of treatment (Social Security) Conv. 1962 (118) Employment Injury Benefits Conv. 1964, A-1980 (121) In validity, Old Age and Survivors Benefits Conv. 1967 (128) Medical Care and Sickness Benefit Conv. 1969, (130) Maintenance of Social Security Rights Conv. 1982 (157) Employment Promotion and Protection against Unemployment Conv. 1988 (168) Maternity Protection Conv. 2000 (183)

8. 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. WAR 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;

9. CHILDREN STATUS ACT, ACT 6 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 Legislative Framework… Cont…

10. 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;

12. Namibia’s Social Protection Systems Non Contributory Schemes Maintenance Grant Motor Vehicle fund Places of Safety Allowance Special Maintenance Old Age Pension Disability Grant Funeral Benefit Foster Parent Allowance War Veterans Grant Housing Subsidy San Community Feeding Health and Education GIPF Labour Linked Transfers Development Fund Private Pension Funds ECF Nutrition Feeding Pension and Medical Aid Fund School FeedingSchool Hostels TIPEEG (Employment Creation) Food Assistance (Food Bank) Free Primary Education Food assistance / Cash for Work Maternity and Sick Leave Subsidized HealthCare Death, Disability and Retirement Contributory Schemes Private Medical Aid

13. Different non contributory scheme amounts SchemeAmount per month Old Age GrantN$ 1000 Disability GrantN$ 1000 Funeral BenefitN$ 3000 Maintenance GrantN$ 250 Special Maintenance GrantN$ 250 Foster Care AllowanceN$ 250 Places of Safety AllowanceN$ 10 per day per child Veterans SubventionN$ 2,200

14. Grant Values/ Coverage over time Grant Type201020112012201320142015 Old Age500 550600 1000 Disability500 550600 1000 Maintenance200 250 Special Maint.200 250 Foster Care200 250 Veterans Sub.20002200 Grant Type201020112012201320142015 Old Age133,455137,692140,567143,007146,171152,144 Disability22,58324,15326,34627,31230,36431,754 Maintenance24,26524,319122,370 Special Maint.27553,4534,080 Foster Care13,40416,45719,799 Veterans Sub.22,58924,26524,31924,6827,04213,122

15. Social Protection as % of GDP SCHEME TYPE2010/11 % of total expenditure % of GDP Social Assistance28.9%1.9% Social Insurance4.7%0.3% Private and occupational retirement Funds43.7%2.9% Medical Schemes22.7%1.5% Total100%6.0%

16. Namibia Social Protection Schemes

18. Social Protection Measures vs. Mandate Old Age Grant Ministry of Poverty Eradication Disability Grant And Social Welfare Funeral Benefit Food Bank Revised (BIG) Health Care Ministry of Health and Prof. Social Work Social Services FLEP Alcohol and substance Abuse

19. Social Protection Measures vs. Mandate Foster Care Ministry of Gender EqualityMaintenance And Child WelfareSpecial Maint. Places of Safety Income gen. Grant Veterans Subv. Dev. Projects Ministry of Veterans Affairs Lump Sum Funeral Benefit Housing Benefit Additional Subv.

20. Social Protection Measures vs. Mandate Water and Sanitation Ministry of Urban and Cash for Work Rural Development Housing Food for Work Office of Prime Minister Spec. Prog. (San Comm.) Marginalized Emergency Food Distr. Ministry of Education Free Education School Feeding

21. Challenges  High Income Inequality  Slow translation of economic growth in Employment  Alternative source of Funding essential  Grants not sufficient  Increased Administrative Cost  Poor targeting strategies (target the poor)  Information dissemination not sufficient  Grants skewed in favour of some regions  Lack of National Documents  Decentralisation not fast enough  Inadequate monitoring systems  Duplication of Efforts – High Admin Costs

22. Recommendations Two Broad sets of Reforms  Extending the risk covered by the social security system in order to reduce poverty and vulnerability and impact positively on the long-term growth possibilities  Ensuring efficiency in the social protection system through better information and monitoring, flowing from a reformed institutional and administrative framework

23. Recommendations Specific Medium to long term recommendations:  Establishment of a Medical Benefit Fund/ Medical Scheme (public option) under the SSC  Strengthening the capacity for regulating the medical scheme industry  Monitoring and improving the quality of Public Health Services while strengthening the purchaser/ provider roles in government

24. Recommendations  Amendment of Disability definition to consider also social circumstances (labour/ occupational approach)  Enabling legislation to ensure that all grants values at a minimum be linked to an inflation index (real value kept)  Acceleration of the establishment of a compulsory retirement benefit e.g. National Pension Fund  Covering of workers under the SSC funds working in the Informal Economy  Establishment of a comprehensive evaluation and indicator framework with a supporting information system

25. Recommendations  Establishment of a Social protection Council to advise Cabinet on Policy, performance of system etc.  Centralisation of responsibility for Social Assistance in one Ministry (Admin Cost, minimized)  SSC to resort under the Ministry responsible for Social Protection and SSC to incorporate MVA Fund  Establish Social Security Regulatory Board and Regulator to provide oversight of SSC  Decentralize services and contract with regional and local authorities for client interface activities ..

26. Recommendations  Phased expansion of Child Social Grant to all children including Infants (Continuation of Maternity Benefit)  Introduction of a maternity benefit to all expectant mothers not covered by SSC  Customer focused and dedicated links or platforms be established to manage client interface with other GRN entities e.g MHAI  Phase out cash pay points and introduce more computerised system that could interface with (e.g. retailer pay points, mobile phone networks etc.

28. COMMENTS … QUESTIONS ? CONCERNS !