Stefanus Nashama
The Independent Patriots for Change (IPC) has unveiled its plan to tackle the country’s high unemployment rate, which the party blames on the Swapo.
IPC spokesperson Immanuel Nashinge, in a statement released on Wednesday, said unemployment remains one of the ruling party’s most significant shortcomings over the past 34 years.
He said IPC is committed to reversing the trend.
“Unemployment remains one of the most significant failures of the ruling party over the last 34 years. IPC’s largest focus is to change that. We’ve done our research,” he said.
IPC’’s election manifesto has prioritised the fight against unemployment.
According to Nashinge, the party has discovered that 33% of the working-age population has been unemployed since 2018, and the number continues to rise.
“According to 2018 employment statistics, out of an employment pool of 1 090 153—71.2% of the working-age population—only 725 742 people (66.6%) were employed, leaving 364 411 (33.4%) unemployed. And this was before the devastating impact of the COVID-19 pandemic, which brought economies to their knees. In Namibia, countless jobs were lost, and businesses shuttered,” he explained.
He said currently, many young people roam the streets in search of ways to earn a living.
According to the IPC, the unemployment rate for individuals aged 15 to 35 could be as high as 60%.
This estimate, the party said, is based on a simple extrapolation from the 2018 data.
At the same time, Nashinge said the unemployment situation has also affected older people, describing it as unsustainable.
“This is alarming for any young voter. The situation is equally dire for many older Namibians, who still face slim prospects of finding work and straining their families and communities. This is simply unsustainable,” he stressed.
In terms of the current economic situation, Nashinge said that the IPC’s proposal for a social contract will resolve the country’s economic troubles.
He said the party has the solution to resolve the situation, particularly through fostering entrepreneurship.
He added that the Namibian business environment is not conducive to entrepreneurship due to the challenging tax system, which hinders business establishment and job creation.
“Our tax system, one of the most punitive in the world, crushes entrepreneurship. We cannot create jobs without entrepreneurs, so we must rethink our approach,” he said.
Nashinge said IPC is inspired to introduce a corporate tax recalibration strategy with a focus on supporting small and new businesses.
According to him, the party plans to reduce the non-mining corporate tax rate from 32% to 22% and implement a 10% dividend tax.
He said for large established companies paying out dividends, their overall tax contribution will remain relatively unchanged, while for smaller companies reinvesting profits to grow, the burden will fall to 22%, offering immense relief and fuelling job creation.
“Under the current system, a non-mining company earning N$100 million in profit pays N$32 million in tax, leaving N$68 million for its shareholders. Under IPC’s plan, that same company would pay 22% tax on N$22 million, leaving N$78 million. Upon paying dividends, we would levy a 10% dividend tax (N$7.8 million). In total, the company would contribute N$29.8 million to public revenue, and shareholders would receive N$70.2 million,” he explained.
Nashinge said the IPC believes this system encourages businesses to reinvest their profits, expand, and hire more people.
“Fostering entrepreneurship through fewer restrictions, lower taxes, and more government support will lead to more businesses, more jobs, and a poverty reduction,” he said.
Over two weeks ago, Swapo Party’s vice president, Netumbo Nandi-Ndaitwah said the government will allocate N$85.7 billion over five years to create mass employment if voted into power.
