Less than half of Namibians are financially literate

The Ministry of Finance has urged quick action to provide people with necessary financial knowledge since many Namibians still struggle with debt management and financial literacy.

Speaking at the launch of Global Money Week and the Financial Literacy Initiative (FLI) in Windhoek yesterday, ministry official Josef Ihemba pointed out the pressing need to improve financial education.

He referenced a 2017 Namibia Statistics Agency report, which found that financial literacy among Namibians aged 16 and older stood at 42.75%.

While financial knowledge scored higher at 51.18%, financial behavior remained worryingly low at 32.26%.

“This disparity shows that while some Namibians may understand financial concepts, they struggle to apply them in daily life. We must bridge this gap,” he said.



SMEs struggling with compliance

Small and medium-sized enterprise (SME) owners are among those facing financial difficulties, particularly in adhering to statutory requirements.

According to Ihemba, many business owners lack basic financial management skills, such as record-keeping and compliance with tax and registration laws.

“Many entrepreneurs don’t even keep proper financial records or understand compliance requirements. That is why institutions like the Financial Literacy Initiative exist—to guide business owners in making sound financial decisions,” he added.

Compliance with beneficial ownership rules presents one of the toughest issues Namibian companies now deal with.

The Business and Intellectual Property Authority of Namibia (BIPA) recently warned that only 84,000 of the country’s 229,000 registered entities have submitted the required beneficial ownership information.

This leaves 145 000 businesses at risk of blacklisting for failing to comply with regulations introduced in the amendment of the Companies and Close Corporations Act in July 2023, a report by The Brief noted.