ESJT Statement-Coronavirus 03-2020


ESJT Statement-Coronavirus 03-2020



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ECONOMIC & SOCIAL JUSTICE TRUST
SAVING LIVELIHOODS
Coronavirus Requires Decisive Action
Press Release, 1 April 2020
The threat of the coronavirus is truly a global pandemic and has reached Namibia as
well. It requires immediate intervention as Southern Africa and most of the rest of the
continent does not have the capacity to care for a large number of infected people.
Structural Adjustment Programmes (SAPs) as pushed for by the International
Monetary Fund (IMF) and the World Bank have significantly reduced funding for health
care and so have our own cost-cutting measures in recent years. To make matters
worse, the capacity for testing is very limited. The only option left is to prevent the
spread of the virus and it is against this background that we welcome the declaration
of a state of health emergency by the Namibian president.
Its implementation proves to be tricky, however, because of structural challenges.
Social distancing and self-isolation to avoid a further spread is virtually impossible
under overcrowded conditions in informal settlements and when transport means
Jumping into packed taxis. What makes matters worse is a lack of potable water and
sanitation which still affects a large number of Namibian households. These
conditions have to be systematically redressed in the years to come to ensure that
future health pandemics can be dealt with. For now, all efforts have to focus on
preventing a spread of the virus and on isolation as China has managed with
considerable success in Wuhan.
A key issue during the Coronavirus crisis is to ensure survival. There is no doubt that
the economic consequences will be severe but unlike during the global financial and
economic crisis of 2008, the focus this time has to be on household support and not
on bailing out corporations. We therefore propose the following immediate steps:
1. The Namibian Labour Act states that work can be reduced for a period of up to 3
months (and possibly extended) while workers need to receive at least 50% of their
wages during this period. This, however, is not sufficient to deal with the current crisis
as some employers have already started retrenching workers or sending them home
on unpaid leave. Itis thus essential for government to pass additional regulations that
P.O. Box 96179, Windhoek, Namibia Email: esjtrust@gmail.com Tel: +264-811243438 (chairperson)
Trustees: Rinaani Musutua, Michael Gaweseb, Herbert Jauch, John Nakuta and Doufi Namalambo

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explicitly prevent the retrenchments of workers during the lock-down. Employers
should be required to continue paying their staff and in cases where they are financially
unable to do so, they must provide proof to government as a precondition to be
assisted through tax exemptions etc. A particular focus will have to be on small and
medium-size enterprises who will face the greatest challenges in maintaining and
paying workers.
2. Available data of the Namibian labour market indicate that only a minority of
Namibians have permanent jobs with income security and benefits. The majority are
in insecure forms of employment, with low salaries often as low as N$ 1500 — 2500
per month. Many are in seasonal or contract employment or have no sources of
income at all, depending on relatives and friends for survival. In a situation like this,
government must immediately step in and the most effective way are cash grants to
households. Our failure to implement the Basic Income Grant (BIG) comes to haunt
us now and this must certainly be redressed in the very near future. An immediate
intervention to secure survival was provided by Rwanda where President Kagame
reportedly decided to provide free food, water and electricity to avoid collection of
firewood. Government officials were instructed move from house to house to provide
food and this happens under supervision to avoid favouritism. Taking food to
households prevents people from having to queue which would put them at risk.
3. Such support for vulnerable households can be partly funded through the reserve
fund of the Social Security Commission which must be directed accordingly. It has a
special responsibility to provide social protection for Namibians and has to take
extraordinary steps in this time of crisis. Likewise, NAMWATER and NAMPOWER
have to be instructed to render the required support to households and municipalities.
4. For the period of the lock-down, government should declare a moratorium on rent
and bond payments so that nobody loses housing or falls into further debt. This cannot
be left at the discretion of financial institutions.
5. Finally, we suggest immediate steps to stop racketeering and price hikes on
essential goods like food, hand sanitizers, masks etc. South Africa provided a good
example in this regard by making such practices punishable by a fine of N$ 1 million
or 10% of the business turnover. Furthermore, businesses are named and shamed
for such ruthless and selfish practices. This is something we need to follow
immediately as some shops are already guilt of racketeering.
These are some of the immediate interventions required to mitigate the socio-
economic impact of the Corona pandemic. In the medium-term, we need to solve the
housing and sanitation crisis, improve our public health care system, implement an
unemployment insurance scheme and provide a basic income grant for all. Only then
will Namibia be able to improve livelihoods and be better prepared for future
challenges.
Herbert Jauch
ESJT Chairperson
8.0, Sox 96179, Windhoek, Namibia £:at: esjtrust@gmail.com ‘s!: +264-811243438 (chairperson)
Trustees: Rinaani Musutua, Michael Gaweseb, Herbert Jauch, John Nakuta and Doufi Namalambo