CHAMWE KAIRA
Namibians’ reliance on credit and borrowing has increased significantly, with nearly half of adults reporting that they borrowed money in 2025, mainly to meet essential household needs such as food, education and transport, according to the latest Namibia Financial Inclusion Survey (NFIS).
NSA statistician-general and chief executive officer Alex Shimuafeni said the survey provides critical evidence to guide policy decisions, support financial sector innovation and strengthen interventions aimed at improving access to financial services for all Namibians.
The 2025 NFIS, released by the Namibia Statistics Agency (NSA) on Wednesday, found that the proportion of adults who borrowed money increased to 49.0% in 2025, up from 42.1% in 2017, highlighting growing demand for credit among households.
According to the survey, borrowing was largely driven by day-to-day financial pressures, with 51.3% of borrowers using funds for food, followed by education (22.1%) and transport expenses (16.4%).
The survey also found that when choosing borrowing options or financial products, Namibians relied heavily on personal networks and affordability considerations.
About 48.4% of adults considered recommendations from family, friends and community members, while 37.7% prioritised low fees or charges.
The findings form part of the fifth national financial inclusion survey conducted by the NSA, following previous surveys in 2004, 2007, 2011 and 2017.
The 2025 survey covered individuals aged 15 years and above living in private households across all 14 regions, producing nationally representative statistics on access to and use of financial services.
The survey showed that financial inclusion in Namibia has continued to improve, with 86.0% of adults (1 563 688 people) now considered financially included, compared with 78.0% in 2017.
Formal financial inclusion increased to 81.5%, driven by commercial banking services and other regulated financial institutions. The survey found that 75.6% of adults use commercial banking services, while 71.3% use other formal non-bank financial institutions.
Financial inclusion remains stronger in urban areas, where 91.7% of adults are financially included, compared with 79.3% in rural areas.
The survey also recorded a narrowing gender gap, with financial inclusion higher among females at 87.6%, compared with 84.2% among males.
Savings continue to play a major role in household financial management, with 72.5% of adults reporting that they save in some form.
However, the survey showed a decline in formal savings, falling from 60.0% in 2017 to 53.2% in 2025. Informal savings increased slightly from 2.9% to 3.5% over the same period.
The NSA noted that affordability remains a major barrier to accessing formal financial services. Among adults without bank accounts, 43.2% cited insufficient funds to maintain savings as the main reason for not opening an account.
While banking access has expanded, geographic barriers continue to affect rural communities.
The survey found that 40.1% of urban residents can reach a bank within 30 minutes, compared with only 5.7% of rural residents.
In contrast, 28.3% of rural residents travel more than three hours to reach a bank, compared with just 1.6% of urban residents.
The NSA said these findings would support implementation of the Namibia Financial Sector Transformation Strategy (NFSTS) 2025–2035, aimed at expanding access to affordable and appropriate financial services.
Despite improvements in banking and credit access, insurance penetration remains limited, with only 32.7% of adults covered by insurance.
Formal insurance coverage stood at 30.9%, while 1.7% relied on informal insurance mechanisms, leaving many households vulnerable to unexpected financial shocks.
The proportion of financially excluded adults declined from 22.0% in 2017 to 14.0% in 2025.
However, exclusion remains higher among rural communities, where 20.7% of adults remain outside the formal financial system, compared with 8.3% in urban areas.
By gender, financial exclusion was higher among males at 15.8%, compared with 12.4% among females.
