Staff Writer
Namibia has made significant progress in expanding access to financial services, but the country’s financial inclusion gains have not yet translated into stronger household resilience, savings growth and productive economic activity, according to an analysis by Simonis Storm.
The financial services firm, analysing findings from the 2025 Namibia Financial Inclusion Survey, said policymakers should look beyond headline inclusion figures and focus on whether financial products are improving household stability, wealth creation and economic participation.
The survey estimates that 86.0% of Namibians aged 15 and older, approximately 1.5 million people, now use at least one formal or informal financial product, compared with 78.0% in 2017. Over the same period, financial exclusion declined from 22.0% to 14.0%.
Simonis Storm said while the progress is positive, the increase in financial inclusion partly reflects population growth rather than a significant rise in penetration rates. It estimates that about 254 480 adults remain financially excluded.
“Progress is real, but the absolute increase overstates rate-driven gains,” Simonis Storm said, adding that the next phase of financial inclusion should focus on the quality and impact of financial access rather than ownership of financial products.
One of the major concerns highlighted by Simonis Storm is the decline in formal savings.
Formal saving among adults fell from 60.0% in 2017 to 53.2% in 2025, while overall saving declined from 80.5% to 72.5% during the same period.
The firm said Namibia has expanded access to financial services without achieving a corresponding improvement in household financial buffers and wealth formation.
“This means that while more people may have access to accounts and financial services, fewer are building formal savings that can support long-term economic security,” Simonis Storm said.
Simonis Storm said household financial resilience remains a key challenge, with many Namibians struggling to manage income pressures.
The survey found that 63.0% of adults struggle to meet financial commitments, while only 25.4% are regularly able to make their income last until the next payment cycle.
In times of financial distress, fewer than 3% of adults would approach a bank or registered financial institution for assistance, with most relying on family and friends.
The firm said this indicates that many households continue to depend on informal social networks rather than formal financial systems to absorb economic shocks.
“For the average Namibian household, resilience is currently borrowed from relationships, not built into the financial system,” Simonis Storm said.
According to Simonis Storm, income levels remain the biggest constraint limiting the effectiveness of financial inclusion initiatives.
The survey indicates that 54.1% of adults earn N$2 000 or less per month, with median personal income estimated at around N$1 700 to N$2 000 per month.
The analysis found that only 2.3% of borrowing is directed towards business formation, while access to agricultural finance remains constrained.
Simonis Storm said the survey presents opportunities for banks, insurers, fintech companies and development finance institutions to develop products that better address household needs.
“Namibia has completed much of the first phase of financial inclusion, connecting people to financial tools. The next challenge is ensuring those tools improve economic security and enable households to build wealth,” Simonis Storm said.
