By Anonymous
As the financial sector champions the shift toward a cashless Namibia, boasting figures like N$1.2 trillion in electronic transactions, an important truth is being overlooked: the majority of Namibians still rely on cash for daily transactions.
The push for digital payments may benefit banks and payment processors, but on the ground, cash remains the most trusted, accessible, and cost-effective method of exchange.
EFTs vs. Card Payments: A Game of Fees and Control
To understand the reality of Namibia’s transaction landscape, we must first separate two key elements of the so-called “cashless revolution”: Electronic Funds Transfers (EFTs) and card payments.
EFTs (N$1.26 trillion in 2024) These transactions, often used by large businesses, government entities, and high-income earners, dominate the official digital payment statistics. They represent major salary disbursements, corporate transactions, and supplier payments, money that rarely trickles down to the informal economy.
Card Payments (N$119.99 billion in 2024) Unlike EFTs, which move large sums, card payments reflect retail spending, yet they remain a fraction of overall transactions. Why? Because swiping a card comes at a cost, and Namibians know it. Every transaction is subject to fees, and for those living paycheck to paycheck, every dollar counts.
The Informal Economy: The Invisible Giant of Cash Transactions
What digital transaction figures fail to capture is the informal economy, where the majority of Namibians earn and spend their money. Street vendors, taxi drivers, open markets, and small businesses do not show up in official transaction reports, but they power the nation’s economic engine.
Here’s the reality: cash dominates because it is affordable, anonymous, and practical. The informal sector is not burdened by high transaction fees, bank charges, or the risk of frozen accounts. In a country where every dollar matters, why would someone choose to swipe when they can keep all their money by using cash?
Banking Fees: The Real Reason Namibians Reject Digital Payments
Namibians are financially intelligent enough to recognize one simple fact: banking fees are too expensive.
Each swipe comes with a charge. Each withdrawal comes with a charge.
Each mobile money transfer comes with a charge. Each balance check? You guessed it, there’s a charge.
For many Namibians, particularly those in the informal sector, keeping money outside the banking system is not just about convenience, it’s a financial survival strategy. Why should they pay banks for access to their own money?
Banks promote digital transactions under the guise of “convenience,” but the reality is that the more digital payments grow, the more fees they collect. It is no coincidence that the strongest advocates for a cashless society are the ones profiting from every transaction.
The Silent Resistance: Namibians Are Fighting Back
Despite the media narrative that cash is disappearing, the truth is far different. Namibians are fighting back the best way they know how, by continuing to use cash.
When a taxi driver refuses card payments, he’s keeping more of his hard-earned money. When a vendor at the market deals in cash, she’s avoiding unnecessary deductions.
When an everyday Namibian withdraws their entire salary and operates in cash, they’re making a conscious decision to avoid high banking fees.
This is not resistance in the streets. This is resistance at the point of sale.
Conclusion: Cash Is Not Dead, It’s Just Off the Books
While banks and financial institutions celebrate the growth of cashless transactions, they conveniently ignore the untracked, unrecorded billions flowing through Namibia’s informal sector. Digital payments may be rising, but cash is far from dead, it has simply gone underground, where banks can’t reach it.
Namibia’s economic landscape is unique. Until financial institutions offer fee structures that benefit the average Namibian rather than punish them, cash will remain king. And no matter how many headlines declare otherwise, the people know better.
