The Ministry of Health and Social Services has proposed the introduction of levies as a revenue-generating mechanism for the recently approved Universal Health Coverage (UHC) policy.
The proposal follows Cabinet’s approval of the UHC policy, which identified funding mechanisms as a key aspect of its implementation.
“As the ministry that spearheaded the policy framework, we proposed a number of things, including levies, once consensus has been reached, as well as specific sin taxes on alcohol and tobacco products,” Executive Director in the Health Ministry Ben Nangombe told The Brief.
Funds raised through these levies would be ring-fenced and placed in the National Health Equity Fund, which aims to bolster healthcare financing.
“Some have proposed levies on SMSes, but Namibians are already complaining about data charges, and you don’t want to burden the people more,” Nangombe said.
Following the policy’s approval, Cabinet has tasked the office of the Deputy Prime Minister with convening various stakeholders, including government offices and agencies, to explore strategies for capitalizing the Equity Fund.
“It is something being worked on. The experts will put their heads together and advise government on the best way forward,” Nangombe added.
The first meeting on the Equity Fund’s financing is scheduled for April 2025 during a planned health symposium on national health financing. Nangombe indicated that by 2026, further deliberations would lead to the drafting of a framework to establish the Fund, with initial capital injections paving the way for the intensified implementation of UHC.
“The policy is in place. We know its objectives and the trajectory we want to follow. Other countries have implemented National Health Insurance and similar tools,” he said.
Currently, Namibia’s Fiscus allocates N$3 billion to the Public Service Employee Medical Aid Scheme (PSEMAS) and N$11 billion to the public health sector annually. This has resulted in Namibia achieving a UHC service coverage index score of 62-64%, one of the highest in Africa. However, Nangombe stressed that additional funding is needed to improve healthcare access.
With approximately 85% of Namibia’s population relying on public healthcare services and only 200,000 citizens covered by private healthcare, the proposed Equity Fund seeks to bridge financial gaps in the system.
Former Health Minister Kalumbi Shangula emphasized the Equity Fund’s role in strengthening the healthcare system.
“The Ministry will increase health worker availability through strategic recruitment and retention, invest in health infrastructure by building and upgrading facilities, and eliminate structural barriers that hinder access to care for vulnerable groups of the population,” Shangula said.
