Justicia Shipena
Swapo member of parliament Tobie Aupindi has proposed that Namibia consider receiving dividends from its mineral resources in physical commodities such as gold, uranium and lithium instead of only cash payments.
Aupindi made the proposal while contributing to the national budget debate in parliament on Tuesday.
He said Namibia should explore building strategic commodity reserves as part of a new approach to managing national wealth.
“I am calling for the commodity dividend model. Instead of the state receiving its dividends in Namibian dollars or United States dollars, we should explore taking dividends in physical commodities, be it gold, uranium, or the new gold, lithium,” he said.
Aupindi said the approach could help the country protect its wealth from global currency volatility and inflation.
“This allows the state to build a strategic commodity reserve, providing a hedge against currency volatility and a physical backing for a national balance sheet,” he said.
He said Namibia must rethink its economic structure as global markets shift.
According to him, the global economy of 2026 is no longer the predictable machine of the early 2000s.
Aupindi warned that Namibia cannot continue relying on raw commodity exports while other economies move toward high-technology industries.
The global economic growth is projected at about 3.3%.
Aupindi also raised concerns about the structure of Namibia’s economy.
“Thirty-six years after independence, the commanding heights of our economy, commercial land, banking and the extractive industry remain largely in the hands of the minority,” he said.
He said many black Namibians remain concentrated in the informal sector and face barriers to finance and capital.
Aupindi called for stronger support for black-owned businesses and proposed increasing localisation in government procurement.
“We must dismantle the barriers that keep black-owned SMEs as spectators,” he said.
He also urged Namibia to strengthen its role in regional trade frameworks such as the Southern African Customs Union and the African Continental Free Trade Area.
“For decades we have treated SACU as a national ATM,” Aupindi said, adding that Namibia must move from relying on customs revenue toward building regional value chains and local manufacturing.
“We must ensure Namibia is not just a transit corridor for South African goods, but a manufacturing hub that processes our lithium and rare earth minerals before they leave our borders,” he said.
Pindi also raised concerns about the performance of state-owned enterprises.
“Our state-owned enterprises have become a fiscal burden,” he said.
He suggested that government consider listing portions of some state-owned companies on the Namibian Stock Exchange (NSX) to allow citizens to own shares and improve accountability.
Finance minister Ericah Shafudah tabled the national budget last month under the theme “People, Productivity, Prudence”. The budget totals about N$87.9 billion, lower than the N$106.3 billion presented in the previous financial year.
Pressure on public spending
During the same debate, member of parliament Inna Hengari warned that operational spending continues to dominate the budget.
The public sector wage bill remains a major cost, with N$1.7 billion allocated for salary adjustments.
Operational spending now exceeds N$80 billion, accounting for more than 75% of the total budget.
She said this limits funding for development projects.
The government revenue is also under pressure. Total revenue is projected at N$89.6 billion due to weaker mining sector performance.
Hengari also warned that rising interest costs are placing pressure on public finances.
Interest payments on government debt are expected to reach N$16.2 billion in the 2026/27 financial year, about 17.7% of total revenue.
Hengari said Namibia needs reforms to strengthen economic growth and broaden revenue.
She called for finalising the special economic zones framework, modernising value-added tax systems and encouraging private sector investment in manufacturing and renewable energy.
She also urged the government to adopt international tax standards to prevent profit shifting by multinational companies.
Hengari said profitable state-owned enterprises could also support infrastructure development and called for the completion of Namibia’s Petroleum Local Content Policy to ensure offshore oil and gas projects benefit the local economy.
She said Namibia has strong economic potential but warned that rising debt and limited fiscal space could weaken development if reforms are delayed.
