Launch Statement EIG of the COVID-19 Economic Stimulus Package :: COVID-19

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Launch Statement EIG of the COVID-19 Economic Stimulus Package

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Launch Statement EIG of the COVID-19 Economic Stimulus Package

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REPUBLIC OF NAMIBIA

Ministry of Finance

LAUNCH STATEMENT

Emergency Income Grant

of the

Economic Stimulus and Relief Package

Ipumbu Shiimi, MP

Minister of Finance

Check against delivery

09 April 2020

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Fellow Namibians,

Members of the media,

Ladies and gentlemen,

. Let me take this opportunity to thank you all for your kind response to our

invitation today. Let me also thank all the media houses for transmitting this

message to the public and to all Namibians countrywide.

. On the 1 April 2020, the Government announced the First Phase of the

Economic Stimulus and Relief Package, worth N$8.1 billion in total. The

objective of the package is to address urgent funding needs in the health sector,

mitigate the negative impact of COVID-19 on the economy and jobs and

support livelihoods at household level.

. An integral part of the package is the Emergency Income Grant (EIG),

amounting to N$562.0 million. The grant is a once-off payment of N$750.00 in

cash grant per qualifying person, on the basis of a set of eligibility criteria. This

is estimated to benefit up to 739,000 Namibians.

. Today marks the launch of the Emergency Income Grant. Over the next days

and hours, information on the details of the grant and the processes to be

followed will continue to be rolled out. Applications for the grant will commence

tomorrow, Good Friday, 10" April 2020 until the 30" April 2020. The payments

will start on Tuesday 14 April, 2020 going forward.

Who are the beneficiaries of this grant?

. The grant is targeted at adult Namibian individuals, 18 to 59 years of age who:-

(i)

have lost jobs or income, in part or full, in the informal sector of the

economy as a result of the COVID-19 outbreak,

(il) are unemployed, taking into consideration that the effects of COVID-19

and related public health protective measures have weakened the

means of support and subsistence income across the country.

. Exclusions are for persons who are:-

(i)

below the age of 18 ( who are neither employed or unemployed because

they are supposed to be in school),

(ii) employed and have not experienced reduction in wages,

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(ili) | persons receiving any form of state social grants and Government

support such as Namibia Students Financial Assistance, and

(iv) had jobs or experienced reduced wages in the formal sector.

7. Persons who have lost jobs or reduced wages in the formal sector of the

economy will be supported through grants by the Social Security Commission.

The support for companies and businesses in severely affected sectors will be

rendered through conditional wage subsidies and Government guarantee-

backed preferential loans. This will be done in collaboration with the Social

Security Commission.

8. There is, however, a caution for persons to benefit from this grant. Applicants

must submit correct and truthful information. Each applicant is expected to

affirm that the information provided is correct and truthful. Such information

could be verified with the National Police and other means as well as for tax

law enforcement purposes.

9. | must emphasize that criminal charges will be pressed against those who are

found to have falsely claimed benefits under this scheme and recovery

procedures for false claims will be instituted.

Modalities for application, assessment and disbursement

10. To ensure speedy application, assessment and disbursement of the grants, the

following modalities will be followed:-

(i)

applicants will nominate themselves and make application via cell phone

short message services (sms) to MTC number 141222, free of charge,

(il) MTC will send out a trigger sms to all MTC Sim card holders to prompt

the application process.

(ili)

applicants will answer a set of predetermined questions with details

such as the person name and surname, national identity number,

preferred cell phone number (through which the benefits will be paid)

and the region of residence.

(iv) noting that not all people own cell phones, up to ten persons can make

use of one cell phone number which they commonly use at household

level and make their own cash withdrawal arrangements.

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(v) For ease of administration, the payments will only be made via digital

wallets of participating commercial banks(FNB Namibia, Bank Windhoek

and Standard Bank). Applicants will be requested to indicate a

commercial bank of their choice where their digital wallets will be

distributed.

11.The database of applicants so generated by MTC will be subjected to rigorous

validation checks against the eligibility criteria. This activity will be conducted

by MobiPay Namibia, free of charge.

12.For all the successful applications, the payments will be done by the

participating commercial banks within 72 hours of the approval of the

application.

13.For the purpose of authenticity, transparency and accountability, Deloitte

Namibia, an accounting and audit firm, will audit both the MobiPay information

systems for data integrity as well as the payments to be made by commercial

banks.

14.An information outreach will be extended to Regional Councillors through

Regional Governors to facilitate the identification of persons who may not have

access to cell phones or those of their trusted acquaintances. The Offices of

the Constituency Councillors may be called upon to facilitate access to cell

phones for this category of citizens so as to facilitate payments.

Conclusion

15.To conclude, this Emergency Income Grant will make a once-off cash payment

to about 749,000 Namibians.

16.Consideration for similar arrangements in the future will only depend on the

availability of resources, which are increasingly limited due to the adverse

effects of COVID-19 on the economy and public revenue.

17.The Government, therefore, urges the beneficiaries to use the grant funds

prudently. This benefit should necessarily be earmarked to secure the most

basic needs for sustenance and improving quality of life such as securing basic

health and nutritional needs during this time of unprecedented national

experience.

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18.All the logistical arrangements for the application, processing, validation and

disbursements of this intervention measure are now in place. Applications will

start tomorrow, Good Friday, 10 April 2020.

19.During the ensuing period, details of the grant and processes will be shared

with the public through various media to encourage full participation of the

intended beneficiaries. There will be translation into local vernacular languages,

thanks to pro bon funding by Bank Windhoek in collaboration with the Namibia

Broadcasting Corporation.

20.MTC Call centre will assist applicants with the necessary clarifications during

the application process. A set of Frequently Asked Questions and responses Is

prepared and it is herewith made publicly available.

21.Let me use this opportunity to that the collaborating institutions; MTC Namibia,

MobiPay, Deloitte and Commercial banks for having partnered the Government

and volunteered the use of their infrastructure and resources free of charge in

the spirit of patriotism and whole-of-society approach to fighting and defeating

COVID-19 in our country.

22.| encourage the qualifying Namibian citizens to apply for the grant and ensure

the prudent use of the proceeds.

23. This being said, it is now my pleasure to declare that the Emergency Income

Grant of the First Phase of the Economic Stimulus and Relief Package officially

launched.

Thank you