Debt dragging Namibian men to their grave
Economic strain and its hidden toll
With a debt-to-income ratio of around 78% (BoN 2022), nearly four-fifths of the average Namibian household’s annual income goes toward debt repayments. The financial pressure on men, still regarded as primary breadwinners in most households, is immense. Combined with unemployment and over-indebtedness, it is a major factor behind the country’s alarmingly high suicide rate among men, who accounted for up to 80% of suicides recorded last year.In Namibia, a single salary often supports an entire network of family members, explains Francois Botha, an experienced financial expert and co-founder of Fin Fit Investments, a social enterprise that helps individuals and communities achieve financial stability.
“Job loss therefore triggers a chain reaction that extends far beyond the original employee,” he explains.
Botha warns that Namibia is currently facing one of its greatest socio-economic challenges in decades. A combination of local and global factors, including drought, recession, the continuing impact of the Covid-19 pandemic, and rising international prices, has created the perfect storm, wreaking havoc and pushing many households to their financial knees.
Long, dark shadow
Three out of every four people admit that they often run out of money before the end of the month, says Botha, referencing the overall unemployment rate of 36.9% and youth unemployment, which stood at 44.4% in 2023.
The pressure is further heightened, he explains, by phenomena such as “keeping up with the Joneses” and the so-called “black tax”, where a breadwinner is also responsible for supporting the extended family.
Botha warns that the full impact of a financial crisis often only becomes evident years later.
“When someone can no longer pay a home or car loan, months of notices, collection processes and court proceedings follow before any attachment is made. This explains why the aftermath of Covid-19 is only now being felt by thousands of people,” he explained.
No protection
With local household debt already exceeding N$50 billion, according to him, the need for debt counselling is therefore urgent.
“In South Africa, the National Credit Act protects people under debt counselling. They receive a legal repayment plan and are prohibited from taking on new debt until they have recovered. Namibia has no similar system. If you are over-indebted, administration or sequestration remains the only formal recourse.”
He cautioned further: “Statistics don’t tell the whole story. Behind every figure are people quietly struggling. The biggest mistake is waiting. Financial problems don’t resolve themselves,” he cautions. “Start now, even if it’s small. The sooner you take control, the greater your chance of stabilising your situation.” – [email protected]