Back to the 90s: Namibia’s payroll deduction de-digitisation
For more than two decades, the Namibian government quietly positioned itself as a continental leader in payroll-related financial technology. Through its Payroll Deduction Management System (PDMS), the government operated a sophisticated, fully automated platform that linked the public payroll directly to banks and insurers in real time. The system was built for the future: integrated, transparent and designed to protect more than 100 000 government employees from over-indebtedness.
However, in a move that has left industry experts and civil servants alike searching for answers, this digital infrastructure has been dismantled. In its place, Namibia has introduced a concept rarely seen in modern governance: de-digitisation. The shift from a seamless digital platform to what is effectively a 1990s-style call centre marks a significant reversal in the country’s technological trajectory. In January 2026, the Ministry of Finance confirmed that no digital replacement system was ready to assume the functions of the now-defunct PDMS.
Instead, the solution presented to the public is a “PDMS Helpdesk” - a manual operation reliant on mobile phones and human discretion to manage the complex financial enquiries of more than 100 000 civil servants. This is not merely a procedural adjustment; it represents a fundamental step backwards in service delivery. Where automated rules once offered immediate protection, there is now manual judgement and a heightened risk of administrative and human error. The move also sits uncomfortably with Namibia’s stated ambition to become an ICT powerhouse in Southern Africa by 2030.
A timeline of “policy firefighting”
The erosion of this digital standard did not happen overnight, but the process has been marked by what many observers describe as “policy firefighting”.
- August 2025: The ministry abruptly announced the discontinuation of payroll deduction codes with no prior consultation with stakeholders.
- The reaction: Industry leaders, unions and employees immediately raised concerns about the disruption that would follow.
- October 2025: In response to legal challenges and public pressure, the Ministry of Finance extended the engagement period but confirmed that the digital system would be brought in-house, without a clear roadmap for continuity.
- January 2026: The final admission followed; there was no new automated platform, only a call-centre solution.
This reactive, almost knee-jerk approach suggests that the current outcome was not the result of deliberate design, but rather the product of mounting external pressure after the absence of initial consultation.
The stakes for service delivery
The consequences of this shift now fall squarely on Namibia’s civil servants. The dismantling of a functioning digital system removes the controls that once managed financial risk — controls that existed for a reason. For the more than 100 000 employees affected, the likely outcomes include:
- Slower processing times: Replacing real-time automation with manual enquiries will inevitably cause delays.
- Reduced transparency: Human discretion lacks the consistency and audit trail of an automated system.
- Increased costs: The financial sector has already warned that manual processes will raise costs and reduce access to credit for low-income workers, not to mention the expense of additional staff, offices, and infrastructure.
In essence, the risk of employee indebtedness remains, but the sophisticated tools once used to manage it have been discarded.
A confusing signal to global investors
Beyond the immediate administrative concerns, this decision sends a troubling signal to the international community. Namibia stands on the brink of a potentially transformative era, particularly with the development of its oil and gas sector. Attracting the billions of dollars required for such projects depends on perceptions of stability, predictability, coherent policy, and modern, streamlined financial systems.
When established systems are dismantled without replacements, and policy direction shifts repeatedly under pressure, global investors take notice. Namibia cannot afford to be seen as a “de-digitised economy” that reverts to outdated tools when proven modern solutions already exist.
A call for course correction
The recent replacement of the Executive Director at the Ministry of Finance, who presided over this matter, offers a potential turning point. The key question now is whether new leadership will continue down the path of de-digitisation or recognise that a modern Namibia requires modern tools.
Policy exists to serve the people. At present, the silence surrounding a long-term digital solution is proving costly — both to the country’s credibility and to the financial well-being of its workforce. For Namibia to thrive, it must look towards the digital horizon, not back to the call centres of the past.
*Mefflint de Waal is a Senior Accounting and Financial Advisor.
