Staff Reporter
THE government spent billions of dollars on healthcare and social grants during the 2025/26 financial year, recruited more than 1,500 health personnel and allocated additional funding to settle outstanding medical aid claims and support vulnerable groups, according to the Mid-Year Budget Review tabled by Finance Minister Ericah Shafudah in the National Assembly on Thursday.
The Ministry of Health and Social Services spent N$12.097 billion of its N$12.296 billion budget during the 2025/26 financial year, achieving an execution rate of 98.4%. Operational expenditure reached N$11.627 billion, representing 99.6% of the allocated budget, while N$470.1 million was spent on development and infrastructure projects.
Regional and district hospitals accounted for N$4.787 billion in expenditure on outpatient and inpatient care, while referral hospitals received N$3.675 billion. A further N$1.607 billion was spent on medical supplies and pharmaceuticals through the Central Medical Stores. The ministry also paid N$56.7 million to local contractors for civil, plumbing and electrical renovations at regional health facilities.
During the first half of the 2026/27 financial year, 1,537 health personnel and 456 medical and dental interns were recruited and deployed. A new MRI scanner was commissioned under the “Vision 1st April 2026” initiative, while the Motor Vehicle Accident Fund donated medical equipment worth N$19 million to Katutura State Hospital and Onandjokwe State Hospital.
The government also mobilised N$1 billion through the Development Bank of Namibia to finance the planned 500-bed Windhoek District Hospital.
Health outcomes included a reduction in maternal mortality from 51 to 37 per 100,000 live births, while the rate of HIV transmission from mother to child under the Prevention of Mother-to-Child Transmission programme stood at 1.2%.
The Public Service Employees Medical Aid Scheme (PSEMAS) recorded expenditure of N$4.235 billion on medical claims during the 2025/26 financial year, exceeding its initial allocation of N$3.559 billion. The expenditure represented 119% of the original allocation, driven by high claim volumes.
PSEMAS covered an average of 149,750 principal members, with average claims of N$3,084 per patient under the High Option and N$926 under the Standard Option. Monthly payroll contributions from civil servants generated N$575.1 million in non-tax revenue.
As part of efforts to improve the scheme’s administration and financial sustainability, the first phase of PSEMAS reforms was completed with the establishment of a dedicated Governance Committee. An additional N$535 million was also reallocated under the Ministry of Finance to settle outstanding medical aid claims.
Social protection spending remained a significant component of government expenditure. National social safety nets under Vote 09, administered by the Ministry of Finance, accounted for N$7.406 billion in expenditure during the 2025/26 financial year, with 667,301 beneficiaries receiving social grants at an overall annual cost of N$7.5 billion. Periodic reconciliations also identified and recovered N$41 million in unclaimed grant savings.
The Ministry of Gender Equality and Child Welfare spent N$428.1 million, representing 92.9% of its budget. Its programmes included accommodating 355 victims of gender-based violence and human trafficking at eight state shelters, subsidising 21 private children’s homes caring for 489 children, and providing psychosocial support to 5,234 children.
The Henties Bay street-youth rehabilitation pilot project graduated 75 young people, of whom 19 were reintegrated into formal schooling and 32 entered vocational training.
Early childhood development enrolment reached 126,213 children across 981 centres. The ministry also trained 297 early childhood development educarers through a programme supported by the European Union and UNICEF at a cost of N$7.9 million, while monthly subsidies were provided to 3,256 educarers.
For the 2026/27 financial year, N$12.9 million was reallocated to the Ministry of Gender Equality and Child Welfare. This comprised N$5 million to sustain the National Sanitary Pad Initiative for vulnerable schoolgirls and N$7.9 million for monthly allowances for early childhood development educarers.
Photos: Parliament of the Republic of Namibia/Ministry of Health and Social Services
