More than 70% of working individuals are unable to save money or build generational wealth because of the unemployed depending on them.
A 2025 financial monitor report by Old Mutual Namibia shows that about 75% of employed Namibians have adult dependants, other than a spouse or partner who rely on them for financial support.
As a percentage of the total working population, this means almost half a million (424 354) people.
Economists say the cycle of one individual supporting multiple family members financially is a poverty trap that leaves many employed Namibians with no money at the end of the month.
Meanwhile, 77% have children who depend on them financially, the report reveals.
“The study reveals that a large proportion of working Namibians remain highly financially stressed, intensified by high levels of financial dependency,” the report reads.
Additionally, six in 10 working Namibians are part of the ‘sandwich’ generation – those who have both dependent children and other (adult) dependants.
Economist Omu Kakujaha-Matundu says working individuals cannot save money or build assets because they do not have the means to do so.
He says people inherit poverty from their parents and pass that on to their children.
“This is definitely a poverty trap, a vicious circle of poverty. What you inherited from your poor parents was poverty, and you are going to bequeath poverty to your children, and your grandchildren will bequeath even greater poverty to your great-grandchildren,” Kakujaha-Matundu says.
To end this vicious circle, the government has to deliberately promote policies that endorse meaningful job creation.
Economist Josef Sheehama says a high dependency burden puts substantial strain on household finances and limits working individuals’ capacity to accumulate assets.
“When income must support both children and additional adult dependants, a larger portion is used for daily living costs, leaving less available for savings and long-term investments,” he says.
Sheehama says this reduces opportunities to build capital through vehicles such as property, retirement funds, or other investments.
“Over time, constrained saving and investment slow wealth accumulation and make it more difficult to establish and pass on financial security to future generations,” he says. Analyst Tannan Groenewald’s analysis of the Namibia Statistics Agency’s national census statistics shows that 44.1% of Namibians aged 15 to 34 are not employed, in school or training.
This leaves them dependent.
“This indicates that a large share of young people are currently outside both learning and work, and are currently unable to capitalise on their youth,” Groenewald says.
In 2023, a United Nations finding published by the National Planning Commission in the Demographic Dividend Study Report, shows that young people remain dependent until the age of 27 when they start producing more than they consume.
The latest population and housing census labour force report shows that 34.1% of Namibians earn less than N$2 000 per month.
In contrast, only 3% of employed Namibians earn more than N$40 000 per month.
Last year, Numbeo, a crowd-sourced global database on quality of life, released its cost-of-living index for Africa, ranking Namibia third in southern Africa.
The estimated monthly expenses of a single person is US$623.3 (N$11 148), excluding rent.
This means for a single person to live comfortably, they have to earn more than N$11 148.
In South Africa, both parents have a legal duty to financially support their child, regardless of whether they are married or who has custody.
This obligation generally continues until the child turns 18.
Adult children also have a legal responsibility to support their parents if the parents are destitute, meaning they cannot provide for their own basic needs such as food, clothing, shelter, or medical care.
The law further allows a person in financial need to claim maintenance from their siblings, as the duty of family support extends beyond parents and children.
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