Africa-Press – Namibia. Ngurare opens up about almost taking his life
Financial stress is increasingly affecting the mental health of Namibians, with experts linking economic hardship to rising cases of anxiety and depression.
About 40% of Namibians earning N$3 000 or more per month are affected, according to data from the Old Mutual Financial Monitor.
“Almost a third of working Namibians’ financial stress is negatively impacting their mental and physical well-being,” the report reads.
According to the data, those who are financially stressed also have fewer savings and investments.
These people also struggle to monitor their budgets or set financial goals.
“The financially stressed exhibit higher levels of borrowing, dipping into their savings and falling behind on payments when compared to those who are less financially stressed,” the report reads.
According to the report, only one in four Namibians make use of a financial adviser.
DEBT LEVELS
As at the end of 2024, Namibians owed 796 cash loan businesses N$8.1 billion.
Of this amount, N$1.3 billion has been recorded to be arrears, meaning Namibians are defaulting on payments
This is according to the quarterly report of the Namibia Financial Institutions Supervisory Authority (Namfisa), which regulates the non-banking financial sector.
The total number of borrowers was 240 475, an increase from money borrowed by 221 841 people from microlenders in 2023.
“Term lender loans, which constituted 94% of the total loan book, grew by 10.7% quarterly to N$7.6 billion,” the report reads.
Commercial banks had N$6.6 billion’s bad debt by the end of 2024, a consequence of clients struggling to repay their loans.
This is after extending loans to the value of N$118.9 billion in 2024.
“Non-performing loans (NPLs) increased by N$96.3 million to N$6.6 billion in 2024 due to unfavourable economic conditions characterised by high interest rates, high inflation and unemployment, which impacted the ability of households and businesses to service their debts,” the Bank of Namibia’s annual report reads.
The most significant increases in NPLs were observed in personal loans, instalment sales agreements, and other loan categories.
“Personal loans have seen a significant jump of N$94.3 million,” the report says, adding that instalment sales agreements, such as those for vehicles and furniture, increased by N$72.2 million.
‘I THOUGHT OF SUICIDE’
Prime minister Elijah Ngurare last week shared his personal experience of financial turmoil, which nearly drove him to take his own life between 2015 and 2019.
“I was in serious financial stress, my house and car were on the verge of being repossessed for prolonged non-payment. The thought crossed my mind to commit suicide with the hope that my family could benefit from my life cover and that they would pay off the debt in full,” he posted on Facebook.
Ngurare said the unwavering support of his loved ones helped him overcome that dark period.
He urged Namibians facing similar despair to not give up.
“Please don’t go through with it. Fight on. The sun will shine again amid all the hardships of life. To be alive is priceless, especially to one’s family.”
Nguarare shared this message after a teacher from Okongo in the Ohangwena region took his life citing financial problems.
His last note said he was sorry, and that he was in debt with a lot of people.
Microlenders Association administrator Rachelle Metzler says microlenders are not fly-by-night businesses that prey on Namibians, but involve a regulated sector.
She says clients should be offered financial literacy training before being extended loans.
“What we are advocating for is to provide financial literacy training for first-time borrowers or those identified as vulnerable,” Metzler says.
She says the microlending industry should move towards more personalised loan offerings rather than fixed products.
“In the past we had a ready made loan programme and we gave that to any borrower, but we must have a product offering that is tailored to fit an individual,” Metzler says.
She says internal controls monitoring borrowers should be stronger, allowing microlenders to reach out to defaulting clients and find ways to help them before getting into financial trouble.
For More News And Analysis About Namibia Follow Africa-Press
