Namibians stretch every dollar — but at what cost?
Financial resilience among Namibians is being tested as the cost of living continues to climb and income levels stagnate.This was the key message at Old Mutual Namibia’s Media Masterclass held in Windhoek last Friday, where journalists and media professionals gathered to strengthen their financial reporting skills and gain deeper insight into the economic challenges facing the nation.
The event featured training in financial literacy through Old Mutual’s On The Money programme, as well as a masterclass by business journalist Lazarus Amukeshe. At the centre of the session was the release of the 2024 Old Mutual Financial Services Monitor (OMFSM), which paints a sobering picture of how working Namibians are managing their finances, often just barely.
Based on a survey of more than 650 working adults, the monitor reveals that 52% of respondents feel financially stressed, a figure that mirrors the growing burden on households trying to navigate rising expenses with little or no increase in income.
Despite these pressures, many Namibians are taking initiative to stay afloat. The survey found that 28% of respondents are working multiple jobs, while 24% either own or part-own a business. One in five people surveyed said they are saving to start a business in the near future.
There is also a notable uptick in alternative saving and investment behaviours: 15% of working Namibians now belong to a stokvel and 18% invest in livestock, reflecting a blend of cultural practice and financial necessity.
Alarm bells
However, increased reliance on debt is raising alarm bells. Credit card ownership has risen to 66%, while 48% of respondents reported having personal loans, both up from last year. Half of those surveyed said their income has not increased since 2023, with many indicating they are earning less than before.
Retirement planning remains a significant concern. Only 22% of respondents expressed confidence in their retirement savings, and nearly half have not started saving at all.
“Namibians are doing everything they can, taking on extra work, borrowing, cutting expenses, but it’s clear that many are under immense strain,” said Mignon du Preez, Old Mutual Namibia’s Executive for Public Affairs and Sustainability. “This report helps us understand the depth of the challenge and tailor our support to meet people where they are.”
Sanja van den Berg, Group Customer Experience Manager at Old Mutual Namibia, added: “Financial wellness is about more than budgets and spreadsheets. It’s about helping people feel empowered and secure in their future.”
As part of its commitment to financial empowerment, Old Mutual offers free education through On The Money, aimed at helping Namibians of all income levels make informed financial decisions, manage debt, and save for long-term goals.
With nearly 52 000 households in Windhoek alone still lacking access to electricity, and similar gaps in housing, food security, and healthcare, the findings of the OMFSM offer a stark reminder: while Namibians are stretching every dollar, the question remains: Is it enough?