Namibian MP Inna Hengari has called for urgent reforms to the country’s financial system, including using the US$24.3 million Welwitschia Sovereign Wealth Fund to support debt relief for low-income households and civil servants.
Speaking in Parliament, Hengari described a structural debt crisis affecting many Namibians and criticised the current financial system.
“A banking sector that grows while households crumble is not resilient,” she said.
Hengari proposed redirecting part of the Welwitschia Fund, which earned a 10.4% return and holds US$24.263 million, to create a targeted debt relief programme for civil servants, especially those losing large portions of their income to loan repayments.
She highlighted that nearly half of Namibia’s workforce faces unsustainable debt, with some workers losing up to 60% of their salaries to loan repayments.
“This is not financial inclusion; this is financial entrapment. Teachers and nurses are left with less than half their income,” Hengari said.
She also called for capping interest rates through changes to the Banking Institutions Act and stronger regulation of informal lenders and digital loan apps charging over 50% interest.
Hengari warned that Namibia’s fixed exchange rate with the South African rand limits monetary flexibility, resulting in lending rates between 10% and 40% despite a lower repo rate.
She called for a parliamentary inquiry into how the currency peg affects policy and borrowing costs.
Other proposals include expanding financial literacy into a national campaign and using the upcoming Instant Payment Solution platform to provide digital financial education.
Hengari urged the Welwitschia Fund to set up a social investment portfolio supporting youth enterprises, green cooperatives, and small businesses.
“Regulation without reach is rhetoric. Enforcement without equity is oppression. We must reimagine the system if we want true inclusion,” she said.
The motion has been sent to the parliamentary standing committee for further review.
