By Hilda Basson Namundjebo
In June 2025, Cirrus in a LinkedIn post highlighted the current state of the velocity of money in the Namibian economy. The velocity of money is defined as the ratio of GDP to the broad supply of money, an indicator which refers to the circulation of money in an economy. There is what is referred to as high velocity and low velocity.
In 2024, velocity subdued in Namibia to a downward trend, when compared to 2019 in the formal market. Household disposable income remain restrained. In general, I remain fixated with how we can grow the Namibian economy in general and how we can create preference for local brands in particular.
We hear a lot of talk about brands and branding without anyone really being able to explain what it really represents.
Most of us have an early memory of cattle being marked or branded to indicate ownership. What we have failed to realise is that the brand was not only indicative of ownership but it also spoke volumes about the quality of the herd. Because if you knew who the owner was, and his reputation in keeping livestock, then it would be an easy purchase.
Brands provide psychological relief in a world of too many options, branding provides a filter and prioritises information using cognitive short cuts.
Given the highlighted reality, where the velocity of money slows, consumers become highly discerning. Spending is no longer a routine activity—it is a calculated choice. This shift presents both a challenge and an opportunity: in favour of brands that successfully build trust and can secure loyalty in a time of caution.
The Psychological Shift: Trust Over Impulse
When economic conditions tighten, the consumer psyche shifts from impulsive spending to value-driven decision-making. Brand preference is no longer solely on the premise of price or by what is in vogue. It is shaped by perceptions (and yes perception is reality) – perceptions about reliability, authenticity, and consistency. Businesses that position themselves as customer centric during economic uncertainty foster long-term relationships with consumers. This is where branding plays a crucial role.
Branding is a Stability Anchor
Nations, organisations and personalities are brands. Brands are valuable and it is worth mentioning that strong brands command a high premium in terms of attention and the influence it exerts is significant, even though it is intangible and will never appear on a balance sheet.
Namibia is a brand, a brand with opportunity given its election of the country first female President. Firsts are celebratory events and leaders must be intentional to scale the image and reputation of our country, reinforcing reliability in times of transition.
Every brand is premised on functional efficiency and strong emotional bonds. Bank Windhoek asked us a daring question not so long ago with their brand repositioning: can you love a bank? This notion challenges us to consider that brands are not only to be endured, but they must forge a powerful emotional connection with its stakeholder community.
So what do you feel about Brand Namibia? I believe we are yet to define succinctly, both our comparative and competitive advantage as a nation state. The comparative component of brand Namibia relates to our ability to be better when compared to other nation states. This could be on the basis of what government charges for services as well as the quality of our infrastructure, our people’s skills etc. Our diamonds are a case in point: our gem diamonds in terms of quality is of distinction, however when compared to our neighbours Botswana, Angola and South Africa, our diamonds are more expensive per carat. Of course, the reasons for that are multiple but factually we are more expensive. And this is where we must tell our story in a manner that sets us apart and show evidence in terms of the sustainability and the sectors enduring impact.
When it comes to our competitive advantage, diamonds are again worthy of distinction. Our sourcing methodology and sector leadership is exceptional. Furthermore, we continue to cite the fact that we have the best roads on the continent but we fail to scale that reality. Namibia is renowned for having the freest press in Africa, but beyond a press release in May and a few random citations, how do we own that to ensure it delivers reputational gains for the country. Our ability to transition is legendary, but we almost negate that dividend to the point that the late President Geingob warned us not to regard peace as boring but to harness the dividend that is available. Namibians have proven after 35 years to be people who carry within us; a democratic DNA.
The lasting question remains: how do we scale both our competitive and comparative advantage? How do we monetise it? How does it make us better and more attractive for investment both local and foreign?
Our key messaging should be focused on building confidence, inspire trust by being inclusive and encouraging economic engagement. Similarly, businesses can achieve preference by emphasizing enduring values—be it sustainability, innovation, or customer-centricity.
Branding as an Economic Catalyst
When businesses and governments communicate reliability and strategic vision, they stimulate confidence in spending. This confidence directly impacts economic velocity—trust leads to transactions, which in turn fuels growth. A well-positioned brand does more than survive a low-velocity economy; it becomes an economic driver, shaping consumer behaviour while standing as a pillar of resilience.
To inspire high velocity again, Namibia as a brand should be refocused on:
- Scaling branding which offers psychological relief—by reducing confusion, signalling stability, and projecting long-term vision—it becomes a trust multiplier. And in a high-grievance, low-trust world (as the 2025 Edelman Trust Barometer notes), that clarity is not just comforting—it’s investable.
- Telling the Namibian story on our entrenched democracy and its by-product of predictability. Our ability to transition smoothly and peacefully in a world wreaked by havoc and instability, is unique and laudable.
- Manage challenges on service levels and reputational challenges around corruption
- Rebrand the country’s investment opportunities particularly as we are venturing into new markets (green hydrogen, oil & gas). Imagine what 9 months of active exploration could do for this economy and the number of jobs it could create. Imagine the multiplier effect in our communities.
- Positioning Namibia favourably especially in regards to the weaknesses of the neighbourhood in which we find ourselves. Our diamond story is one which is largely untold, even though our diamonds are of the highest quality.
*Hilda is a business leader, public speaker and a seasoned broadcast journalist. Founder of the national brand and organisation Team Namibia, Hilda believes her purpose is to impact the world with kindness, one engagement at a time.
