About 30% of Namibian adults rely on family or friends for financial help in an emergency, but three-quarters of them say the money would be very difficult to obtain, according to Leora Klapper, Lead Economist at the World Bank.
Klapper said only one in three Namibian adults can access additional funds within 30 days, forcing many to depend on relatives, friends or the sale of assets to cover unexpected expenses.
Speaking at a recent industry event, she noted that financial pressure in Namibia extends beyond emergencies and often affects household and business responsibilities.
“People in Namibia, like many other Sub-Saharan African countries, say school fees, paying for a child, nephew, or grandchild, is what keeps me up at night. Business expenses are also a major concern,” Klapper said.
Klapper said Namibia has made notable progress in expanding financial inclusion, with 73% of adults now owning a financial account, a significant increase over the past decade. However, she said access disparities persist among poorer, younger and rural adults.
“Namibia has surged in account ownership over the past ten years, with 73% of adults reporting having their own financial account. However, significant disparities remain among poorer adults, rural residents, and younger adults,” she said.
She added that mobile-enabled accounts are helping bridge these gaps by offering affordable and accessible financial services.
“Mobile money accounts are more convenient, accessible, and typically more affordable, providing critical access for rural and low-income populations,” Klapper said.
She said growing digital connectivity presents further opportunities to expand financial inclusion and participation in the economy.
“Over half of adults report having a smartphone, and more than 80% have access to a phone, suggesting opportunities not only through mobile money but also through apps to deliver financial services,” she said.
Despite these improvements, the use of digital platforms for earning income remains limited in Namibia.
“Only 17% of adults in Namibia report earning income using an app or website, compared to a regional average of 6%,” Klapper said.
Klapper said that expanding access to digital financial services is key to building financial resilience and enabling households and businesses to invest and grow.
“Digital financial services are driving both access and use of financial services, helping people build resilience, save, invest, and have money for business, educational opportunities, and more,” she said.
