The findings of the latest Financial Inclusion Survey published by the Namibia Statistics Agency (NSA) reveal stark economic realities that cannot be ignored.
Across Namibia, thousands of citizens are forced into a debilitating cycle of debt simply to be able to afford the bare necessities of life.
Rather than borrowing to buy property, invest in education, or build businesses, a majority of working Namibians are taking out credit to put food on the table.
Yet, the Namibian government has the audacity to talk about restarting a new national airline that will likely gobble up billions of dollars of taxpayers’ money.
It’s nothing but misplaced priorities when the majority are starving.
The reliance on debt for basic survival demonstrates a severe structural failure in the economy, making the implementation of a universal basic income grant not merely a social policy option, but an unavoidable necessity.
The statistics provided by the country’s national statistics authority paints a grim picture of household financial security.
Of 546 000 working Namibians, a staggering 54% earn less than N$2 000 a month. Unsurprisingly, these low wages leave families with zero disposable income, forcing 51.3% of the working population to borrow money simply to buy food.
Furthermore, 22.1% borrow to meet educational costs, and 16.4% take on debt to pay for daily transport. Overall, borrowing has expanded significantly, rising from 42.1% in 2017 to 49.0% in 2025.
Household debt to commercial banks exceeds N$124 billion, while debt owed to micro lenders is put roughly at N$7.2 billion.
Economists highlight that borrowing for food is a clear symptom of a deep structural crisis. Unlike taking out a loan for a business, buying daily groceries on credit generates no future income stream.
Food is a recurring daily requirement, yet the debt incurred to pay for it remains long after the meal has been consumed. When more than half the working population relies on credit to feed themselves, going short on food has ceased to be a temporary emergency; it has become a standard condition of daily life.
Compounding this crisis is the reality that poverty itself has become a lucrative business model. Desperate families who borrow to buy groceries are saddled with high interest rates, particularly when forced to rely on informal lenders or loan sharks who charge extortionate rates.
As a result, families fall into a trap of taking out new loans just to service previous debts, leaving them with even less money for food in subsequent months. To survive, households are forced to skip meals, cut children’s food portions, or sell off livestock and household belongings.
Rather than helping solve hunger, the credit market aggravates it, directly profiting from human desperation.
While some market analysts argue that private sector growth and employment expansion are the only sustainable remedies, the reality of widespread low wages and structural unemployment means market mechanisms alone cannot ensure immediate survival.
A universal basic income grant offers a logical path forward to establishing an unconditional financial floor. As proposed by the Basic Income Grant Coalition, introducing a universal monthly grant of N$500 for every Namibian aged between 0 and 59 would guarantee basic income security.
A universal basic grant directly addresses the core issue: the fundamental inability of current wages to cover essential living costs. By replacing expensive, predatory credit with a guaranteed cash floor, households can secure food with dignity, break free from the trap of compound interest, and stimulate local commercial economies.
Namibia already pays N$600 to more than 32 000 households, whose monthly income is under N$1 600 a month. But the bureaucratic hurdles and a limited budget stands in the way of enabling more struggling individuals to benefit.
Access to adequate food and living with dignity are fundamental human rights. Given that daily survival on credit is fundamentally unsustainable, adopting a universal basic income grant is an inevitable step toward economic stability and human dignity.
