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Policies that can really reduce poverty

Policies that can really reduce poverty

In general there are two major types of poverty, absolute poverty and relative poverty.
The first is when people have insufficient income to afford the basic necessities of life, such as food, rent and clothing. Relative poverty is when people have income significantly less than the average income.
Policies to reduce relative poverty should focus on three objectives, to reduce unemployment, to implement progressive tax on income, and to increase benefits to the poor.
Reduce Unemployment
The unemployed have no choice but to rely on state benefits. Unemployment can be reduced through both supply side and demand side policies.
The government should spend more on community projects and new training programmes to open new doors for business opportunities.
But they should be careful to make sure that projects are well planned and forecast. Projects must plough back both at community and national level.
Create funding mechanism that are contingent on mentorship and financial education and create new classes of loans for young entrepreneurs.
Progressive Taxes
Increasing progressive taxes, such as the higher rate of income tax from 40% to 50%, will take more income from those on high income levels. This enables cuts in regressive taxes and increased benefits which help increase the income of the poor and allow the poor to keep a larger share of their income.
Increasing benefits to the poor
Means tested benefits involve increasing welfare benefits to those on low incomes. For example, universal tax credit or child benefit, insurance coverage, meals and cafeteria plans, and retirement plan contributions.
Advantages of means tested benefits:
1. They allow money to be targeted to those who need it most. E.g. family tax credit or pension credit; and 2. It is cheaper than universal benefits and reduces the burden on the tax payer.
Haikali Wage Policy
The government could increase the national minimum wage. This is an effective way of increasing the incomes of the low paid, and therefore reducing wage inequality.
I am calling on the Government to call all the sectors on board and strictly introduce the new Haikali Wage policy that states:
1. If a company can pay its top manager N$35,000 upwards, it should not pay its low-level workers less than N$2500. There should be equal percentage elasticity between top managers’ salaries and low level workers.
2. If any company gives car or house allowances to top managers, it should give 40% that will contribute to and be shared among the workers benefits.
A related concept is the Voluntary Living Wage – an attempt to encourage firms to pay higher wages.
Benefits in kind
These are important public services which are provided free or subsidized at the point of use. They mainly involve education and health care. Affordable education enables those from low income families to gain skills and qualifications which can lead to better jobs and higher incomes in the future.
Being poor is not a sin, but remaining trapped in poverty while we have the capability to change our situation is not acceptable. Poverty is not an accident, it is man-made and can be removed by the actions of human beings.
(Edited minimally only to ensure legibility – Ed.)

About The Author

Typesetter

Today the Typesetter is a position at a newspaper that is mostly outdated since lead typesetting disappeared about fifty years ago. It is however a convenient term to indicate a person that is responsible for the technical refinement of publishing including web publishing. The Typesetter does not contribute to editorial content but makes sure that all elements are where they belong. - Ed.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.