Launch_Statement_EIG_of_the_COVID-19_Economic_Stimulus_Package.pdf


Launch_Statement_EIG_of_the_COVID-19_Economic_Stimulus_Package.pdf



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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,
1. 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.
2. 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.
3. 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.
4. 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, 10th April 2020 until the 30th April 2020. The payments
will start on Tuesday 14 April, 2020 going forward.
Who are the beneficiaries of this grant?
5. 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,
(ii) 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.
6. 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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(iii) 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. I 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,
(ii) MTC will send out a trigger sms to all MTC Sim card holders to prompt
the application process.
(iii) 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. I 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
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