Namibia MP blames gambling and spending for citizen debt crisis

Swapo member of parliament Pohamba Shifeta blames gambling for the debt crisis facing many Namibians.

Shifeta proposes that education on how to borrow money be provided, citing that many people are financially burdened due to their borrowing habits.

Shifeta said this yesterday while addressing fellow parliamentarians on a motion seeking to determine if existing laws truly protect people from loan sharks.

Popular Democratic Movement parliamentarian Inna Hengari tabled the motion in June.

“Some people borrow money for gambling and also for consumption, how can you borrow money for that? We need to educate our people that borrowing money to build or invest is the only way, not for gambling,” he said.

He said it is difficult to keep track of such hidden, money-lending businesses, and more needs to be done.

“Those informal lenders who are not registered with the Namibia Financial Institutions Supervisory Authority make it difficult to regulate them as they are outside the regulations.

So, we need to find a way to hold these businesses accountable, just like the Microlending Act of 2018 now prohibits the retention of clients’ bank cards, PINs and identification documents, these lenders must be regulated too,” said Shifeta.

Independent Patriots for Change member of parliament Elvis Lizazi proposes that parliament pass a law so that the Bank of Namibia is required to prescribe a lower maximum lending rate than the current 30%.

Affirmative Repositioning member of parliament Federick Shitana urges parliamentarians to act and address the matter.

“We all are aware of the suffering of the people and we even know some. I think it is now on us to ensure we act swiftly and address the matter,” he says.

Some parliamentarians have attributed the borrowing of money from loan sharks to issues inherited from colonial times.

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