Balancing access, autonomy and financial responsibility
The launch of the recent FinFit survey on how government employees view the Payroll Deduction Management System (PDMS) is about more than just collecting statistics. The data should prompt us to reflect on what the numbers are telling us. It reminds us that financial systems are not abstract mechanisms - they directly impact people’s lives.As the former Statistician General, I know the power of data. It should serve as the bridge between policy and lived experience.
Payroll deduction systems have long been a cornerstone of financial access in Namibia. They were designed to make credit safer for lenders and more accessible for workers, particularly those in the public service. By automating repayments, PDMS reduced defaults, built trust, and opened the door for thousands of employees to participate in formal financial systems. In that sense, it has been a powerful tool for inclusion.
Dependency
But inclusion, while important, is not the ultimate goal. Access without understanding can quickly turn into dependency or over-indebtedness. When payments are deducted automatically, financial discipline improves, but awareness can fade. Financial discipline is notoriously difficult to maintain. As the saying goes, there’s always too much month left at the end of your salary. People easily lose sight of how much disposable income remains for essentials such as food, rent, or savings. True financial empowerment requires more than access, it requires financial literacy.
The survey revealed that many employees appreciate PDMS as a reliable, easy-to-use system that simplifies their financial lives. They would, however, like to see it improved and modernised, not abolished. That tells us something profound: people want both access and autonomy. They value systems that help them, but they resist systems that control them. Abolishing the current system would cause significant anxiety and uncertainty among government employees.
The danger of moving too fast
As Namibia transitions towards more digital and debit-based systems, there will be a temptation to innovate quickly. But when it comes to people’s finances, speed without caution can have serious consequences. Automated processes, such as PDMS, exist because they have been thoroughly tested, refined, and proven to work effectively. Replacing them hastily with less reliable or costlier alternatives risks undermining the very trust that sustains financial inclusion.
Financial systems operate in a zero-error environment. A glitch in a social app may be inconvenient; a glitch in payroll deductions could mean a missed mortgage payment or a family unable to buy food. In this space, moving fast should never come at the expense of accuracy. Innovation must be deliberate, tested, and accompanied by robust safeguards.
Three pillars of real financial inclusion
Real financial inclusion rests on three essential pillars:
Access: Ensuring everyone can access fair and affordable financial services.
Capability: Equipping people with the knowledge and tools to manage those services wisely.
Protection: Safeguarding against reckless lending and financial abuse.
Payroll deduction systems have performed strongly on access and protection. But capability remains the missing piece. Without financial literacy and transparency, inclusion risks turning into dependency.
The future should not be about whether to keep or scrap PDMS, but about how to improve it. Imagine a system where employees can view and manage their deductions in real time, supported by financial education that builds confidence and autonomy. It’s not only government employees who could benefit; in Namibia, we could all use stronger financial literacy skills.
That is the kind of inclusion that lasts, one that strengthens households, not just balance sheets.
Systems alone do not make people financially healthy; awareness, behaviour, and trust do. Our collective responsibility, as policymakers, lenders and citizens, is to design systems that build both a strong economy and strong households. Payroll deductions are one instrument in that symphony. Played in tune, they create harmony. Left unchecked, they create noise.
The FinFit survey has started a vital conversation, one based on evidence, not emotion. By listening carefully and acting responsibly, Namibia can build a financial system where access, education, and protection go hand in hand.
That is how we ensure inclusion is not just about survival, but about dignity and strength, leading to a more financially resilient workforce with greater access to the services they need.
* Dr John Steytler is an economist. He writes in his personal capacity.