NTA to Collect N$200 Million Through Vet Levy

THE Namibia Training Authority (NTA) has registered more than 1 700 companies for the VET levy and is expected to collect close to N$200 million during the first 12 months.

Minister of Education David Namwandi revealed this on Thursday.

Namwandi said of the 1 713 registered companies, 21% are employers from the wholesale and retail sector, 18% from the financial and business services sector and 17% from the mining, quarrying, construction, electricity, gas, water supply and sanitation sector.

“A further eight percent of registered employers are from the hospitality and tourism sector, while seven percent are from the health and social service sector,” he said.

The NTA expects to collect N$198 million during the first 12 months of levy payment, according to estimates based on the registration and individual annual company payroll volumes.

“About N$99 million is to be redistributed to participating employers as part of the in-company training grant allocation, provided such companies submit evidence of training conducted for their employees,” said Namwandi.

The NTA will use N$69 million for key priority training areas as per national training needs identified and N$30 million will be used as administrative expenditure during the implementation of the VET levy.

Media reports reveal that the VET levy comes as part and parcel of the government’s plan to effectively address skills’ shortage in the country through vocational training.

The VET levy, which is part of the 2008 VET Act, affects all Namibian companies who earn more than N$1 million annually.

NTA’s acting chief executive officer Anna Nghipondoka described the NTA as the sun that will bring light to the lives of many Namibians through the creation of more quality training opportunities.

Millennium Challenge Account of Namibia (MCA) has made available N$66 million to the NTA that was used to sign service agreements with 10 training providers who are currently training 1 800 people.

MCA-Namibia chief executive officer Sikongo Haihambo said the company aims to reduce poverty through economic growth and was delighted by the opportunity to take part and assist in the creation of skills creation in Namibia.

Source : The Namibian