It is a fact of life that there exists but
limited resources, yet we as a people have unlimited wants. As a result, we had
to develop an equitable system of resolving this in our lives, and over the
centuries, this has developed into a system of finance that has permeated our
lives. However, not all of us are equally adept at navigating the flow of funds
that surround our lives. As Namibians, we need to know what we’re missing, and
as usual, Statistician-General Alex Shimuafeni and his team at the Namibia Statistics
Agency have our backs.
Recently, they released a report called the
2017 Namibia Financial Inclusion Survey, to determine how we as Namibians
interact with the financial system, and how we interact with it. As only those
16 years or older can legally enter into financial transactions, they were the
focus of the survey. Due to its nature, we could also see some key demographic
statistics concerning the Namibian populace.
Per the survey, the eligible population of
Namibia for financial services was estimated at 1.45 million people, living in
approximately 570 000 households. 52.5% were female, with 47.5% male,
while 52.9% reside in urban areas, and 47.1% in rural areas. 61.3% of Namibians
have never married, while only 31.7% are. Only 8.3% have a tertiary education,
with 54.8% having completed high school, and a further 23.9% primary school.
10.1% of the population has never attended school.
Let’s have a look then at the hardships
faced by Namibians. Only 37.3% could say they’ve never had to go without a cash
income, with only 45% able to claim that they have never had to skip a meal due
to financial troubles. 62.6% could at least say that they’ve never not been
able to send their kids to school due to monetary problems, and 55.1% could
claim money had never prevented them from getting medical treatment.
In terms of homes, 68.8% of Namibians could
claim to own a home, with 17.1% renting and a further 13.2% living rent-free.
Of those, 66.4% built the home, while 20.4% bought it and 10.5% inherited it. Of
those who built or bought their home, 40.6% used saving to fund it, with 22.9%
simply using materials from nature, with only 8.6% using a bank loan.
Of these homes, 60.4% have piped water
available, while 23.1% uses a public tap or standpipe. In terms of sanitation,
43.8% have no facilities and have to use the veld, while 41.4% have a sewer
system or pit latrine. 49.6% still use firewood to cook, with 35.3% using
electricity and 12.6% using gas. Communication-wise, 94% of households have
access to at least a cellphone, with 29.2% having internet access.
So how do we receive our incomes? Turns out
17.3% of us receive salaries from private companies, with 10.3% from government
or a parastatal, and 9.9% receive income from pensions. Surprisingly, 62.5% of
Namibians receive their income as cash, with only 37.1% receiving into a bank
account, and 1.4% into bank wallets. 67.3% report that they receive this income
on a monthly basis. In terms of the amounts, we can see that 32.5% of Namibians
receive between N$ 1 and N$ 1000 per month, with a further 29.1% receiving up
to N$ 2000. Only 9.7% reported receiving more than N$ 11 000 per month.
When we look at our financial capability,
however, we see other issues emerging as well. 46.7% reported that it is very
difficult to keep up with financial commitments, with another 21.8% reporting
it to be somewhat difficult. Only 6.9% reported it to be very easy.
Furthermore, only 23.1% could report that their income lasted until the next
paycheck, with 40.2% reporting that it never did. To cover the difference,
61.5% would get money from family and friends, while only 10.5% could dip into
savings.
In terms of spending, the three things we
buy first when paid appears to be groceries (76.8%), paying our water bills
(36.5%) and putting some money aside for household items (30.6%). 31.5% of
people make their financial decision alone in their household, with a further
50.9% sharing that responsibility with other members. About 15.7% reported that
they are not involved with any of the financial decision making in their
households.
Perhaps most disconcerting, however, is
that fact that the data reveals that Namibians suffer from the superiority
illusion, or above-average effect. When asked, 71.2% of Namibians indicated
that they consider themselves organized when it comes to managing their money,
with 58.9% considering themselves savers rather than spenders.
The survey, however, tells us a rather
different story. Only 28% of Namibians record money received monthly, and 26.3%
recorded expenses monthly – and 58.3% and 59.8% respectively do not keep record
at all. And while 73.7% indicate that they plan on how to spend their salaries,
77.6% have to change their plans if something unexpected occurs, with only
12.2% having made provision for unexpected events.
If we consider ourselves organized when it
comes to our financial matters, but cannot even create a budget or plan for
unexpected events, we certainly cannot claim that as fact. The full report has
many more interesting statistics, but this one, I feel, cuts to the heart of
the matter. As long as we believe ourselves to be financially competent, we do
not try to improve our capabilities, and we remain unable to manage our income
properly. The time has come to swallow our pride, and start asking for help
from those more financially literate if we are truly to become as financially
organized as we believe ourselves to be.
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