Mismatch between defence, direct youth-focused spending a lingering tension point – analyst

Head of investments at Simonis Storm Max Rix has raised a red flag over the prioritisation of defence spending in the budget over the Namibia currently grappling with a high unemployment rate.

Despite the Netumbo-Nandi Ndaitwah administration promising to tackle unemployment head-on, budget allocation towards young people is eclipsed by military expenditure.

The recently tabled national budget allocated N$1.3 billion, some of which is supposed to deal with stadium construction, sports leagues and youth skills programmes.

“While that is an improvement, the question arises whether it is enough to move the needle in a direction where more than one in three young people struggle to find formal work,” says Rix.

In his post budget tabling analysis, Rix drew a comparison between this allocation with the N$7.5 billion allocated to defence, remarking that the stark difference in resources becomes clear.

“Although a portion of the defence budget is presumably tied up in salaries and legacy obligations, the mismatch between defence and direct youth-focused spending is a lingering tension point.”

“This is especially significant given that youth disaffection and lack of economic opportunity can be a long-term threat to stability, every bit as significant as the external threats that the defence budget is meant to counter,” he says.