Old Mutual: Education is the greatest enabler
“With education we have the potential to fight disempowering poverty, despondency caused by unemployment and to advance economic growth by putting our resources to good use. All we need is a strong human resource base,” said Abraham Iyambo in a much-quoted speech in 2010 to Ministry of Education senior colleagues.
Education is the great enabler. Education can assist with dealing with current unemployment, with creating jobs of the future, and can provide equal opportunities to all and take our people out of poverty to prosperity.
Economic Context:
Currently, Namibia allocates more than 20% of its national budget to education. While this figure is under 10% of total GDP, Namibia remains one of the top countries with the highest percentage of its national budget directed toward education in the world.
And yet, the outcome of the investment to date is such that unemployment remains a problem in our country.
We know that our economy has grown steadily over the past 24 years – with GDP growth having averaged between 4% and 5% annually over that period. At the same time, however, unemployment has risen from about 19% in 1991 to current levels of 27%.
Clearly the GDP growth rate has not been sufficient to create enough jobs to reduce unemployment, and the much of the growth we have seen over the past twenty years has been ‘jobless’.
The Need for Quality Education:
The latest labour force survey demonstrates that unemployment falls as education levels increase, reinforcing the need to continue spending more of our public funds on education and skills development.
In real terms, the focus of public budgets going forward should be on improving the quality of education. This can be achieved through:
• Ensuring proper classroom infrastructure and thus providing a conducive learning environment in all corners of our country;
• Providing appropriate and adequate teaching equipment and materials at all schools on time;
• Ensuring Namibia has enough qualified teachers in all corners of the country, specifically focusing on areas of priority, e.g. for key subjects such as Mathematics, Sciences and English. In the short to medium term, we need to important teachers with the right skills-set from neighbouring countries and beyond. In the medium-to-long-term, we need to train enough teachers of our own in various countries and have them return home to teach. Then we need to strengthen teacher-training at our own institutions of higher learning to ensure continuous supply. This will be increasingly necessary as access to education increases through the Universal Education Programme already begun at primary level.
• Providing teacher housing at all schools so that teachers can comfortably be posted to any school where their knowledge and skills are required.
• Elevating the teaching profession in Namibia by paying teachers extremely well. This will help with attraction and retention of teachers.
• And at the same time, a greater emphasis and spend is necessary to create additional capacity in vocational skills education, increase the up-take of students in vocational training centres, enhance the quality of vocational education and promote and enforce vocational skills development early on in the school curriculum. Vocational education is surely a great driver in the creation of sustainable jobs for Namibia.
• Similarly, a re-prioritization of the tertiary-level courses which we fund through public coffers needs to be addressed. Without minimizing the importance of any field of study, it is proposed that we prioritize the fields of study that directly support Vision 2030.
Developing a quality labour force for economic growth is a tall order that requires extraordinary national efforts, as well as assistance from all role-players, including the private sector, and the budget’s successful application to real needs will require the right focus and drive from all its stakeholders.
Education Budget 2014/2015:
The estimated Education budget allocation for the 2014/15 period is N$13.1 billion - certainly real evidence of government’s concern and commitment to improve both the input and output of this Ministry.
Comprising the bulk share of government allocation this year, this 22.7% commitment of total budget is once again specifically earmarked to fund the development and upgrading of educational facilities, the provision of teacher’s accommodation, learning materials, recruitment of qualified teachers and support for institutions of higher learning and vocational training, as well as increased financial support to students wishing to access tertiary institutions.
Right Focus:
Considering the state of education at Independence, it is clear that much work has been done and access to education has surely increased across the country. And with the increasing focus on vocational training, relevance of curriculums to individual and national needs are being recognised, if only incrementally addressed.
What is not yet properly in place, is improved efficiency of schools management, the necessary reduction in wastage and the eradication of ill-application or worse, non-application of funds, specifically as regards the necessary roll-out of teacher accommodation and the upgrading and development of facilities. There is increasing concern that the skills necessary to effectively deliver on the maintenance and building requirements over the next years, are sorely missing.
Increased participation by external role-players can do much to provide the necessary impetus for Vision 2030 achievement. Along with continued private sector Corporate Social Investment initiatives such as the Old Mutual Principal’s Academy, and the Old Mutual Maths Teachers Initiative, that speak to improving the quality of education in Namibia, infrastructural funding options and project management offers by the private sector will need to feature as joint ventures with the Ministry to hasten the speed of construction and upgrading required.
The Bottom Line:
For youth, increased education opportunities, including increasing vocational training emphasis; for parents, much needed financial assistance to help children achieve the first steps to a career; for the Ministry, a strong call for efficient service delivery with regard to infrastructure development and teacher qualifications, and for business, increased opportunity to partner education initiatives across the country to ensure national sustainability and assist to deliver to Vision 2030’s goals.
Whether the utilisation of the new education budget’s funds will be tackled by all its stakeholders with the proper vigour and focus to meet the government’s lofty aspirations for 2014/15, remains to be seen. What we do know, is that Old Mutual will always be there to support those committed to enabling positive futures for all Namibians.
Company profile: Old Mutual
Our business in Namibia - Old Mutual Namibia
For nearly 90 years Old Mutual has been a leading Namibian financial services company offering customer-focused investment and savings solutions. These solutions comprise private wealth accumulation (including retirement savings, and risk protection: life, disability and health and short-term insurance) and asset management (including unit trusts and portfolio management).
Our Products are designed to provide superior value for money to customers, and we strive at all times to offer responsive and efficient service levels and sound financial advice. Through our own belief in training and ongoing educational development for our own employees, we continue to increase the intellectual content of our products and solutions, the results of which make real positive differences in our customers’ lives every day.
Our commitment to economic transformation is two-fold. Our Old Mutual Foundation is funded with 1% of Old Mutual’s profits after tax every year, and communities across Namibia are positively impacted through our N$5m plus annual commitment to enhancing the nation’s core areas of Education, Sport, Community Development and Skills and Capacity Building.
Some of these initiatives include our national Education Excellence Awards that rewards top schools, regions and students annually; our commitment to growing leadership in schools via our Principal’s Academy at the African Leadership Institute; our region-by-region Maths initiative; merit bursaries to our trade union partners; as well as our support of the growing micro-business environment, which provides training to Women Entrepreneurs. Our support to community development and sport delivers the annual Victory Race Series for athletes and Far North Championships for aspiring soccer and netball champions, both events decades-long investments into growing skills and community spirit across the country.
Our broader economic transformation commitment also includes the management of our MIDINA Fund (Managing Infrastructure Development in Namibia), which provides debt financing for infrastructure development projects. Investors in the MIDINA Fund – which includes third parties - are provided the opportunity to invest locally and earn market-related returns whilst contributing to an uplifting environment for Namibians. Over N$800m has been invested in alternative investments of this kind to date, enabling the development of medical facilities, shopping centres and numerous land service delivery projects across the country.
Our customers know that they have bought into a company that has both world-class standards, and real investment into the communities within which it operates.
Individuals and companies can contact us on [email protected] to continue the conversation.
Education is the great enabler. Education can assist with dealing with current unemployment, with creating jobs of the future, and can provide equal opportunities to all and take our people out of poverty to prosperity.
Economic Context:
Currently, Namibia allocates more than 20% of its national budget to education. While this figure is under 10% of total GDP, Namibia remains one of the top countries with the highest percentage of its national budget directed toward education in the world.
And yet, the outcome of the investment to date is such that unemployment remains a problem in our country.
We know that our economy has grown steadily over the past 24 years – with GDP growth having averaged between 4% and 5% annually over that period. At the same time, however, unemployment has risen from about 19% in 1991 to current levels of 27%.
Clearly the GDP growth rate has not been sufficient to create enough jobs to reduce unemployment, and the much of the growth we have seen over the past twenty years has been ‘jobless’.
The Need for Quality Education:
The latest labour force survey demonstrates that unemployment falls as education levels increase, reinforcing the need to continue spending more of our public funds on education and skills development.
In real terms, the focus of public budgets going forward should be on improving the quality of education. This can be achieved through:
• Ensuring proper classroom infrastructure and thus providing a conducive learning environment in all corners of our country;
• Providing appropriate and adequate teaching equipment and materials at all schools on time;
• Ensuring Namibia has enough qualified teachers in all corners of the country, specifically focusing on areas of priority, e.g. for key subjects such as Mathematics, Sciences and English. In the short to medium term, we need to important teachers with the right skills-set from neighbouring countries and beyond. In the medium-to-long-term, we need to train enough teachers of our own in various countries and have them return home to teach. Then we need to strengthen teacher-training at our own institutions of higher learning to ensure continuous supply. This will be increasingly necessary as access to education increases through the Universal Education Programme already begun at primary level.
• Providing teacher housing at all schools so that teachers can comfortably be posted to any school where their knowledge and skills are required.
• Elevating the teaching profession in Namibia by paying teachers extremely well. This will help with attraction and retention of teachers.
• And at the same time, a greater emphasis and spend is necessary to create additional capacity in vocational skills education, increase the up-take of students in vocational training centres, enhance the quality of vocational education and promote and enforce vocational skills development early on in the school curriculum. Vocational education is surely a great driver in the creation of sustainable jobs for Namibia.
• Similarly, a re-prioritization of the tertiary-level courses which we fund through public coffers needs to be addressed. Without minimizing the importance of any field of study, it is proposed that we prioritize the fields of study that directly support Vision 2030.
Developing a quality labour force for economic growth is a tall order that requires extraordinary national efforts, as well as assistance from all role-players, including the private sector, and the budget’s successful application to real needs will require the right focus and drive from all its stakeholders.
Education Budget 2014/2015:
The estimated Education budget allocation for the 2014/15 period is N$13.1 billion - certainly real evidence of government’s concern and commitment to improve both the input and output of this Ministry.
Comprising the bulk share of government allocation this year, this 22.7% commitment of total budget is once again specifically earmarked to fund the development and upgrading of educational facilities, the provision of teacher’s accommodation, learning materials, recruitment of qualified teachers and support for institutions of higher learning and vocational training, as well as increased financial support to students wishing to access tertiary institutions.
Right Focus:
Considering the state of education at Independence, it is clear that much work has been done and access to education has surely increased across the country. And with the increasing focus on vocational training, relevance of curriculums to individual and national needs are being recognised, if only incrementally addressed.
What is not yet properly in place, is improved efficiency of schools management, the necessary reduction in wastage and the eradication of ill-application or worse, non-application of funds, specifically as regards the necessary roll-out of teacher accommodation and the upgrading and development of facilities. There is increasing concern that the skills necessary to effectively deliver on the maintenance and building requirements over the next years, are sorely missing.
Increased participation by external role-players can do much to provide the necessary impetus for Vision 2030 achievement. Along with continued private sector Corporate Social Investment initiatives such as the Old Mutual Principal’s Academy, and the Old Mutual Maths Teachers Initiative, that speak to improving the quality of education in Namibia, infrastructural funding options and project management offers by the private sector will need to feature as joint ventures with the Ministry to hasten the speed of construction and upgrading required.
The Bottom Line:
For youth, increased education opportunities, including increasing vocational training emphasis; for parents, much needed financial assistance to help children achieve the first steps to a career; for the Ministry, a strong call for efficient service delivery with regard to infrastructure development and teacher qualifications, and for business, increased opportunity to partner education initiatives across the country to ensure national sustainability and assist to deliver to Vision 2030’s goals.
Whether the utilisation of the new education budget’s funds will be tackled by all its stakeholders with the proper vigour and focus to meet the government’s lofty aspirations for 2014/15, remains to be seen. What we do know, is that Old Mutual will always be there to support those committed to enabling positive futures for all Namibians.
Company profile: Old Mutual
Our business in Namibia - Old Mutual Namibia
For nearly 90 years Old Mutual has been a leading Namibian financial services company offering customer-focused investment and savings solutions. These solutions comprise private wealth accumulation (including retirement savings, and risk protection: life, disability and health and short-term insurance) and asset management (including unit trusts and portfolio management).
Our Products are designed to provide superior value for money to customers, and we strive at all times to offer responsive and efficient service levels and sound financial advice. Through our own belief in training and ongoing educational development for our own employees, we continue to increase the intellectual content of our products and solutions, the results of which make real positive differences in our customers’ lives every day.
Our commitment to economic transformation is two-fold. Our Old Mutual Foundation is funded with 1% of Old Mutual’s profits after tax every year, and communities across Namibia are positively impacted through our N$5m plus annual commitment to enhancing the nation’s core areas of Education, Sport, Community Development and Skills and Capacity Building.
Some of these initiatives include our national Education Excellence Awards that rewards top schools, regions and students annually; our commitment to growing leadership in schools via our Principal’s Academy at the African Leadership Institute; our region-by-region Maths initiative; merit bursaries to our trade union partners; as well as our support of the growing micro-business environment, which provides training to Women Entrepreneurs. Our support to community development and sport delivers the annual Victory Race Series for athletes and Far North Championships for aspiring soccer and netball champions, both events decades-long investments into growing skills and community spirit across the country.
Our broader economic transformation commitment also includes the management of our MIDINA Fund (Managing Infrastructure Development in Namibia), which provides debt financing for infrastructure development projects. Investors in the MIDINA Fund – which includes third parties - are provided the opportunity to invest locally and earn market-related returns whilst contributing to an uplifting environment for Namibians. Over N$800m has been invested in alternative investments of this kind to date, enabling the development of medical facilities, shopping centres and numerous land service delivery projects across the country.
Our customers know that they have bought into a company that has both world-class standards, and real investment into the communities within which it operates.
Individuals and companies can contact us on [email protected] to continue the conversation.
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