Millions available for training

AUGETTO GRAIG

The Namibia Training Authority (NTA) has N$N$168 million to give to vocational, education and training (VET) levy-paying local companies that apply for employer training grants before 1 May 2018.

Half of the N$337 million collected in the form of VET levies during the 2017/2018 financial year is earmarked for employer training grants, while 35% goes to priority training grants.

The NTA is legally entitled to use the remaining 15% for administrative costs, chief executive officer Jerry Beukes said on Tuesday.

Beukes explained that any money not assigned to employer training grants, or not used for the administration of the NTA, goes back into the priority training grant programmes aimed at accelerating national efforts towards skills development.

The priority training grant programme has already received an investment of N$220 million, with more than N$100 million of that going directly to skills training, national training fund manager Joseph Mukendwa elaborated.

More than 3 500 trainees currently benefit from this funding.

Beukes added that this expenditure is based on sector skills plans for identified priority economic sectors, and developed with the input of ten expert committees from relevant fields.

The priority sectors are: construction; energy, water and sanitation; finance and business services; fisheries and maritime; healthcare and social services; mining and quarrying; manufacturing and related industries; postal services and telecommunications; tourism and hospitality; transportation, warehousing and logistics; wholesale and retail trade; and agriculture and forestry.

For Namibian companies the really good news is the opportunity that now exists to get financial reimbursement, up to 50% of their mandatory VET levy contributions, for the investments made in training their staff.

Eligible employers are Namibian registered and have an annual payroll of N$1 million or more.

They are required to pay a levy of one percent of their annual payroll to the NTA, and are entitled to claim back half of that, provided they provide the required proof with their claims.

This proof includes signed attendance registers, invoices and receipts from training providers, for training materials, subsistence and travel expenses, accommodation, certificates and performance assessments, proof of payment and any related supplementary records available.

Claimants must ensure that the levies are paid up to date and no interest payments or penalties are outstanding.

Beukes said claim applications must include proof of training provided to employees, including accredited short courses presented by accredited trainers, and the actual costs thereof.

All level one to five VET courses outlined in the National Qualifications Framework and accredited by the Namibia Qualification Authority (NQA) qualify for such refunds.

Courses not accredited by NQA but related to VET courses offed by accredited and registered training providers are also included.

Good news is that more and more eligible companies are applying for the VET employer training grants, increasing from 15% in 2014/2015 to 18.6% last year. This is above the international benchmark according to Beukes.

Despite being hampered by a lack of evidence attached to submissions for the grant in the past, he believes that Namibia can achieve a claim rate of 20% in the near future.

Another important benefit for full participation in the initiative to train more Namibians is its possible benefit to the national economy and its potential impact on unemployment.

“We understand what is happening in the economy and we are partnering with employers and their federation to make sure trainees can participate in the economy in the future. Once our trainees finish they don’t necessarily need to find work because with their new skills they can start a business of their own,” he said.