Wednesday, October 7, 2026
Subscribe
The Brief | Namibia's Leading Business & Financial News
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • E-PAPERreader
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • E-PAPERreader
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
Subscribe
No Result
View All Result
Home Latest

Low salaries push civil servants into hands of loan sharks

by reporter
June 14, 2026
in Latest
16
A A
Group of professionals in business attire walking down the steps from a government building labeled 'Office of the Prime Minister' with a crest above the entrance.

Low salaries are driving thousands of lower-grade civil servants into debt and forcing many to rely on micro-lenders and loan sharks to survive, Executive Director in the Office of the Prime Minister Shivute Indongo has warned.

Appearing before Parliament’s Standing Committee on Economy and Industry, Public Administration and Planning, Indongo said employees in Grades 15 to 18 are struggling to meet basic living costs, leaving them trapped in a cycle of borrowing and debt.

“These income levels are pitiful. Many employees in the lower grades simply cannot survive on their salaries, which forces them to rely on micro-lenders even for basic necessities,” he said.

Indongo warned that growing debt levels among public servants are becoming a serious concern, with many employees increasingly excluded from formal banking services because of poor credit records.

“Because they are over-indebted, formal banks will not assist them. They end up going to micro-lenders, asking for more money and more time and, in the process, they fall deeper into debt. Many are also turning to unregistered loan sharks,” he said.

The remarks come amid growing concern in Parliament over the rising debt burden carried by civil servants and the impact it is having on their financial wellbeing.

Committee Chairperson Ipumbu Shiimi questioned whether the government’s payroll deduction system may be contributing to the problem. The system allows micro-lenders to access deduction codes and recover loan repayments directly from salaries before employees receive their monthly pay.

Shiimi noted that while the arrangement was intended to simplify loan repayments, it may also be encouraging excessive borrowing among public servants.

The discussion comes as government undertakes major reforms to the Payment Deduction Management System (PDMS) following the termination of its contract with Avril Payroll Deduction Management Company. The Ministry of Finance is now bringing all payroll deduction operations fully under government control.

Indongo also called for the introduction of mandatory financial wellness monitoring for civil servants, arguing that government has a responsibility to monitor the financial health of employees who form part of the country’s administrative machinery.

“I don’t know why financial wellness has not been made mandatory in our country. I previously spent time in Botswana, and they have an explicit public policy there. They continuously monitor the financial stability of their public workers because these are the people running the state machinery,” he said.

“In our case, there is no one watching over the financial health of our staff; it is treated as a private matter. That needs to change.”

The warning highlights growing concern that financial distress among government employees is no longer merely a personal issue but an emerging public sector challenge.

author avatar
reporter
See Full Bio
Previous Post

If Namibia has no highways, what have we been building all these years?

Next Post

Namibia is entering an exciting period of economic development

Must Read

Blue citizen ID card being held, featuring a QR code and printed personal details on a light background
Latest

Rural access concerns emerge over Namibia’s planned electronic IDs

October 6, 2026
Wooden letter blocks spell 'GRANTS' on a desk with money in the foreground.
Latest

Basic income grant registrations stalled as funding runs out

October 6, 2026
Side-by-side portraits: an older man in a dark suit and tie on the left, and a woman wearing glasses and a colorful patterned top on the right.
Latest

OPM moves to unlock N$15bn investment projects stalled by bottlenecks

October 5, 2026
DBN rules out increasing stake or buying Ohorongo Cement
Latest

High Court overturns minister’s approval of Ohorongo cement merger

October 5, 2026
Govt moves to prioritise local manufacturers in procurement overhaul
Latest

Only 84 of 260 public entities submit procurement plans on time

October 5, 2026
Three people at an award ceremony holding a large check from Capricorn Foundation for ₦500,000 to One Economy Foundation, smiling on stage.
Latest

Capricorn Foundation supports skills development for 2,400 youths

October 5, 2026
Load More

Related News

BoN expected to cut interest rates

BoN expected to cut interest rates

October 15, 2024
Enabling Namibia’s growth through trade finance solutions

Enabling Namibia’s growth through trade finance solutions

March 27, 2026
Annual inflation peaks in Namibia’s entertainment, dining sectors 

Annual inflation peaks in Namibia’s entertainment, dining sectors 

April 9, 2024

Browse by Category

  • Africa
  • Agriculture
  • Analysis
  • Business & Economy
  • Columnists
  • Companies
  • e-edition
  • Finance
  • Finance
  • Fisheries
  • Green Hydrogen
  • Health
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • namibia
  • Namibia
  • News
  • Opinions
  • Property
  • Retail
  • Technology
  • Tourism
  • Trade
The Brief | Namibia's Leading Business & Financial News

The Brief is Namibia's leading daily business, finance and economic news publication.

CATEGORIES

  • Business & Economy
  • Companies
    • Agriculture
    • Finance
    • Fisheries
    • Health
    • Property
    • Retail
    • Technology
    • Tourism
    • Trade
  • e-edition
  • Finance
  • Green Hydrogen
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • namibia
  • News
    • Africa
    • Namibia
  • Opinions
    • Analysis
    • Columnists

CONTACT US

Cell: +264814612969

Email: newsdesk@thebrief.com.na

© 2026 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Companies
  • Mining & Energy
  • Business & Economy
  • Opinions
    • Analysis
    • Columnists
  • Africa

© 2026 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.