Living on the edge of debt
A senior cleaner during a parliamentary public hearing on household debt has laid bare the daily struggles faced by many low-income public servants on Friday(19 June), highlighting the human cost of over-indebtedness and predatory lending practices in Namibia.
The National Assembly Parliamentary Standing Committee on Economy and Industry, Public Administration and Planning convened a public hearing in Windhoek on Friday to gather views on a motion titled: "Whether the existing laws are truly protecting Namibians from exploitation by lending institutions and informal money lenders." Among the key issues under discussion were the causes of high household debt, particularly among civil servants, the role of the deduction code system in over-indebtedness, and whether current laws adequately protect households from predatory lending practices and excessive interest rates charged by micro-lenders.
However, the testimony of public servant Lydia Undjombala that brought the realities behind the statistics into sharp focus. Speaking candidly before members of parliament,Undjombala recounted her journey from working as a cleaner at Katutura State Hospital to becoming a senior cleaner. Despite years of service and promotions, she said her salary remains insufficient to cover basic living expenses. "When I started as a cleaner, my salary was around N$2,300. Even with housing and transport allowances, it was about N$3,000," she said.
Today, as a senior cleaner, she earns approximately N$4,000 per month, but says the amount is still not enough to provide for her family. "It can not afford a house. It can not afford transport. It can not cover all the needs of my children and family," she told the committee. Undjombala stressed that many public servants do not turn to cash loans out of recklessness or poor financial planning, but because they are trapped in difficult economic circumstances. Her testimony painted a picture of workers caught in a cycle of debt, where loan repayments leave them with little or no disposable income.
Some, she claimed, are left with only a few hundred dollars after deductions, making it nearly impossible to meet essential household expenses. "People are suffering. Some leave their jobs because there is nothing left after deductions. They go back to the streets because they can not survive," she said.
The senior cleaner described the burden of supporting children, paying school fees, helping elderly parents and covering transport costs while servicing debt.
Her remarks also highlighted the broader economic pressures facing low-income earners. Rising transport costs and the increasing cost of living continue to erode already modest salaries, she argued.
Undjombala called on government to consider reviewing salary structures for lower-grade public servants and to introduce comprehensive financial literacy programmes aimed at helping workers manage their finances and build savings. "What if government comes up with programmes to educate low-income public servants about how to use money, how to save money and how to manage debt?" she asked.
Despite the challenges, Undjombala shared how she has taken steps to supplement her income by establishing a backyard vegetable garden. "I grow spinach in my backyard. When I knock off from work, I go and work in the garden so that I can bring something to the table for my family," she said. Her story resonated with many in attendance, serving as a reminder that behind every discussion on debt, lending regulations and financial policy are ordinary Namibians struggling to make ends meet. "Maybe, maybe grade 15, grade 14 must be taking off and maybe cleaner must start at grade 13. Senior cleaner, maybe grade 12" she said.
Committee chairperson Iipumbu Shiimi thanked Undjombala for her courage in sharing her personal experience, noting that her testimony would help inform the committee's work as it considers possible legislative and policy interventions. "It has empowered the committee, and we will take your suggestions into consideration as we move forward," Shiimi sad.
As parliament examines whether existing laws are adequately protecting citizens from exploitation by lenders, Undjombala's testimony highlights the importance of developing solutions that address not only debt, but also the deeper economic realities that drive many Namibians to borrow in the first place.
