TIRI MASAWI
For millions of Namibians, payday is no longer a relief. It is a countdown to the next struggle.
A new survey released last week by the Namibia Statistics Agency (NSA) shows that more than half of Namibia’s adults survive on extremely low incomes, with many earning about N$2 000 a month while the cost of living continues to rise.
The Namibia Financial Inclusion Survey found that 54.1% of adults earn N$2 000 or less per month. At the same time, prices of basic services continue to increase.
Electricity tariffs have gone up by 3.7%, City of Windhoek rates and taxes increased by 4%, while towns such as Ondangwa and Swakopmund approved 5% increases in water tariffs.
Fuel prices have also increased from around N$15 per litre to above N$22 per litre, while taxi fares have risen from N$13 to N$15. Yango fares have increased by 5%.
For low-income households, these increases are putting more pressure on already stretched budgets.
A decent two-bedroom flat in a good neighbourhood can cost more than N$10 000 a month, while a small family of two people can easily spend about N$2 500 monthly on groceries and toiletries.
The NSA survey shows that 52% of economically active Namibians cannot save any money after receiving their salaries.
It also shows that many households depend on other sources of income to survive.
Government old age grants are the second biggest income source, supporting 14.6% of adults, while salaries support 15.1% of the economically active population.
Part-time work contributes 10% of income sources, informal businesses 9.7%, domestic and farm work 8.3%, remittances 7.5% and child grants 4.1%.
The salary picture remains worrying.
Only 2.2% of adults earn between N$9 000 and N$11 000 per month, while 1.7% earn between N$7 000 and N$9 000.
A further 2.8% earn between N$5 000 and N$8 000, 9.1% earn between N$3 001 and N$5 000, and 6.1% earn between N$2 001 and N$3 000.
The majority earn below N$2 000.
The NSA said most Namibians spend almost all their income on food.
“The proportion of the adult population who found it difficult to keep up with financial commitments has decreased from 68.5 percent in 2017 to 63% in 2025, indicating an improvement in day-to-day money management. Only 25.4% reported that they were often able to make their income last until their next income, underscoring ongoing challenges in household financial management and stability,” Statistician general Alex Shimuafeni said.
Although financial inclusion has improved, many Namibians still struggle to build savings.
The survey shows that 86% of adults are financially included, up from 78% in 2017.
However, 43.2% of adults without bank accounts said they do not open accounts because they do not have enough money to maintain savings.
The survey also highlights a gap between urban and rural communities.
While 40.1% of urban residents can reach a bank within 30 minutes, only 5.7% of rural residents can do so.
On the other hand, 28.3% of rural residents travel more than three hours to reach a bank, compared to 1.6% of urban residents.
Financial inclusion is higher among urban residents at 91.7%, compared to 79.3% in rural areas. Women also recorded higher financial inclusion at 87.6%, compared to 84.2% for men.
‘PEOPLE ARE SURVIVING, NOT LIVING’
Public policy analyst Ndumba Kamwanyah said the survey paints a picture of a country where many workers cannot afford basic needs.
“The latest survey shows that many working Namibians earn very low incomes, making it difficult to meet basic needs such as food, housing, transport, healthcare and education. This means many households are financially vulnerable, with little capacity to save or cope with unexpected expenses. It also highlights high levels of income inequality,” he said.
Kamwanyah warned that higher interest rates and tariff increases would put more pressure on households.
“Higher interest rates and municipal tariff increases will further strain household budgets. People with loans will face higher repayments, while everyone will pay more for essential services. For low-income households, this will likely reduce disposable income and increase financial stress,” he said.
He said Namibia’s wage structure reflects a labour market where many workers are trapped in low-paying jobs.
“Addressing this requires improving productivity, investing in skills development, supporting sectors that create better-paying jobs, strengthening small businesses, and ensuring wage growth is aligned with economic development and productivity gains,” Kamwanyah said.
‘N$2 000 IS A STARVATION WAGE’
Labour expert Herbert Jauch said earning N$2 000 or less makes it almost impossible for people to survive.
“The figures of the statistics agency have clearly shown that this is the majority of Namibians. Now, it shows us also that the national minimum wage is not even adhered to in many places,” Jauch said.
He said unemployment gives employers more power to set low wages because workers can easily be replaced.
“It puts employers into a position where they can basically dictate the terms and they know they can always replace people, particularly in the lower skills levels,” he said.
Jauch said many families are struggling to afford basic needs.
“Decent housing is an illusion under those conditions. They struggle just to meet the absolute essentials, like getting some food, and even often children and families will go hungry with such wage levels,” he said.
He criticised tariff increases, saying they hurt all households regardless of income.
“The Electricity Control Board has approved rate hikes. They are often applied across the board. They are not just applied to wealthy households, they are applied to all of them,” Jauch said.
He called for Namibia to move beyond minimum wages towards a living wage.
“We definitely need hundreds of thousands of new jobs, as the President has indicated, but we don’t yet see how that will be achieved,” Jauch said.
‘SMALL INCREASES BRING BIG PAIN’
Economist Abraham Eita said even small percentage increases can have a major impact on poor households.
“A 4% tariff increase may look small on paper, but for a low-income household it can mean choosing between settling a municipal bill, buying enough food or paying for transport to work. In economics, percentages can sometimes hide pain,” Eita said.
He said the biggest concern is whether incomes are growing at the same pace as prices.
“The real question is not only how much prices rise, but whether people’s incomes can keep up,” he said.
The survey further shows that while 72.5% of adults save in some form, formal savings have declined.
Formal savings dropped from 60% in 2017 to 53.2% in 2025, while informal savings increased slightly from 2.9% to 3.5%.
Borrowing has also increased, with 49% of adults reporting that they borrowed money in 2025, up from 42.1% in 2017.
Many Namibians borrowed money to survive, with food accounting for 51.3% of borrowing, education 22.1% and transport 16.4%.
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