More Employers Register for VET Levy – NTA Expects N$198 Million in Year One

To date the Namibia Training Authority (NTA) has registered more than 1 700 employers as Vocational Education and Training (VET) levy paying employers from whom it expects to collect about N$198 million in the first year.

Out of this number, 21 percent are employers from the warehousing and retail sector, while 18 percent are from the financial and business services sector and 17 percent are from the mining, quarrying, construction, electricity, gas, water supply and sanitation sector. The Minister of Education Dr David Namwandi revealed these figures last week Thursday during the official launch of the VET levy two years after it was approved by Cabinet in compliance with sections 35 to 45 of the Vocational Education and Training Act. Namwandi further said 8 percent of registered employers are from the hospitality and tourism sector, whereas 7 percent of the employers registered as VET levy paying employers are from the health and social services sector.

Based on the aforementioned registration numbers and the individual annual company payroll volumes, the education minister noted that the NTA expects to collect a total amount of about N$198 million in the first year of the introduction of the levy. Namwandi also revealed that about N$99 million is expected to be redistributed to participating employers as part of the in-company training grant allocation, provided such companies submit evidence of training their employees. Meanwhile, he said close to N$69 million is to be channelled towards key priority training areas as per the national training needs identified by the board of directors of the NTA after consideration of the training needs identified under the 4th National Development Plan (NPD4), Vision 2030 and the sector skills plans of the various industry skills committees. Additionally, Namwandi added that close to N$30 million is to be utilised by the NTA for administrative expenditure incurred during the implementation of training activities and programmes. Namwandi further commended the NTA and industry stakeholders for their commitment and resolve to implement and realise the VET levy as a programme “under which our country can sustainably enhance both the quality and quantity of technical and vocational skills provision.”

“Through your collective resolve and commitment, our country now has a more stable and sustainable funding regime than ever before under which to accelerate the provision of equitable, quality and accessible technical and vocational education and training,” he said.

Source : New Era