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Namibia is the most sparsely populated country in Africa. In the 1990s the government decided
to extend its national pension scheme to everyone over the age of 60. But there was a problem
– how to distribute the pensions to remote rural areas. Only half of those eligible for
a pension were actually receiving one.
Ono Shigwesha, Paymaster, Tsumkwe We make an announcement on the radio telling
the people that on this day, come together, the Paymaster will meet you there at your
place.
The government decided to partner with a private company who travel across the country in vehicles
equipped with a cash machine and a biometric recognition system. Now over 93 per cent of
all elderly people in Namibia receive the monthly pension of 65 US dollars, funded from
taxes.
Elderly man (in English) It is a good thing really, we are buying our
food for the day, we are also buying our groceries, you can see here.
Elderly man (in Ju!’hoansi language) With this money, I’ll buy the basic things
I need. Elderly woman, (in Ju!’hoansi language)
I’ll buy cornmeal and sugar.
Not only does the pension ensure that older people meet their basic needs, it also directly
benefits local economies. Here in Tsumkwe village, if elderly shoppers can’t pay mid-month,
the shopkeeper gives them credit. He knows they will be able to pay it back on pension
day.
Shopkeeper: (in English) Older people buy a lot of things. And we are
very happy. I can say that it’s very good, the pay day of pension days, we made a lot
of money but we help them also, fifty, fifty from us to them.
In poorer communities, the pension can represent a vital income to entire families. It can
help send children to school, create jobs and even support elderly people who run their
own business.
Elderly woman (in Ju!’hoansi language) With my pension, I will buy more beads for
my jewellery business.
Namibia is one of a growing number of developing countries worldwide that offer a universal
non-contributory pension to its elderly. Extending social security schemes like this globally
would greatly accelerate the fight against poverty. At the International Labour Organization
promoting a social protection floor for all, including income security for the elderly,
is a core objective.
Michael Cichon, Director of the ILO Social Security Department
Pensions like the one in Namibia are part of the social protection floor that the ILO
and the UN as a whole is promoting as an anti-poverty and an investment in economic development.
The story of Namibia actually helped us to break the myth that the systems are not affordable
in developing countries. And that’s of strategic importance.
An ageing population means Namibia will have to work on ensuring the scheme’s sustainability
in years to come. Nevertheless, providing a universal pension is something the (Namibian)
government is committed to.
Joyce Nengenge, Ministry of Social Welfare and Labour (in English)
Here, everyone benefit, and we are happy with it.
Johanes Asipala, Economist (in English) It’s a good model, why? It’s because of
it’s impact on poverty, also its ability to offer access to social services. Simply
because of those two, I think it could be a good model that can be replicated in other
African countries.
Introducing basic social security measures for all can change the face of poverty for
the better.