Staff Reporter
ABOUT 1 563 688 Namibian adults, representing 86%, are financially included, using either formal and/or informal financial products and services.
This was highlighted by the Namibia Statistics Agency’s (NSA) 2025 Namibia Financial Inclusion Survey (NFIS). The recently launched report aims to provide key indicators of financial inclusion, including access to financial services, the use of financial products, financial capability, and risk management practices.
According to the report, the number of Namibian adults who are financially included increased notably since 2017.
“This marks an increase from 78.0% in 2017, bringing approximately 425 785 more adults into the financial inclusion fold. Of those financially included, 81.5% are formally served, comprising 75.6% served by commercial banks and 71.3% served by other non-bank formal institutions, whilst 27.7% make use of informal financial mechanisms,” the report indicates.
The report also highlighted that financial inclusion is higher among the urban population, at 91.7%, compared to 79.3% in rural areas.
“Similarly, by gender, females (87.6%) exhibit higher levels of financial inclusion than males (84.2%). Gender and urban/rural gap decreased by 3.4% and 12.4% respectively, reflecting progress in reducing disparities, though rural and male populations remain relatively more excluded,” the report continued.
According to the report, banking in Namibia is primarily driven by savings products and services, as well as transactional activities and remittances, with about 75.6% of the adult population holding bank accounts, while 18.3% reported having a smart card account.
“The main advantages cited for owning accounts include the safety of money from theft (63.6%), ease of sending money (52.3%), and security of remittances (47.3%). Among those without bank accounts, the most common reason given was insufficient funds to maintain savings, reported by 43.2% of respondents,” the report explained.
The report further highlighted that about 35.1% of adults travel between 30 and 60 minutes to reach a bank, while 13.9% travel for more than three hours to reach a bank.
“For urban and rural areas comparison, about 40.1% of urban population reach a bank within 30 minutes, compared to only 5.7 % in rural areas. In contrast, more than one-quarter (28.3%) of rural population travel over three hours to access a bank, compared to just 1.6% of their urban counterparts,” the report continued.
The report indicated that digital banking and mobile financial services are helping to reduce the need for long bank visits, bridging access gaps, particularly for rural populations who face the greatest travel burdens.
When it comes to saving, the report revealed that about 72.5% of the eligible population engage in savings across all forms. However, the report noted that saving through formal mechanisms declined from 60% in 2017 to 53.2% in 2025, while informal savings increased slightly from 2.9% to 3.5% over the same period.
“In terms of gender, a marginal difference is observed, with 72.7% of females reporting that they save compared to males (72.2%),” the report revealed.
The report further highlighted that about 49% of adults borrowed money across all forms, reflecting an increase from 42.1% in 2017.
“Nevertheless, 51.0 % of the eligible population reported not borrowing, with the majority (67.5%) citing fear of debt as the main reason. Among those who borrow, the primary purposes include food (51.3%), education (22.1%), and transport (16.4%), among others, highlighting the role of credit in meeting essential household needs. When selecting credit or loan products, Namibians mainly consider recommendations from family, friends, and community members (48.4%), as well as low fees or charges (37.7%),” the report explained.
In terms of insurance, the report revealed that insurance uptake in Namibia remains relatively low, with about 593 842 adults, representing 32.7%, covered across all forms. Of these adults, the report indicated that 562 309, representing 30.9%, are covered through formal insurance, while 31 533, representing about 1.7%, rely on informal insurance mechanisms.
“Most adults (67.3%) did not have any insurance products or services, with most citing affordability as the main reason. This leaves most of households vulnerable to financial shocks,” the report noted.
When it comes to remittances, a substantial proportion of both males (36.7%) and females (43.3%) reported not using any remittance products in the six months preceding the survey.
“However, among those who do remit, the most used channels were formal remittance products, reported at 58.5%. Out of all adults remitting, 94.1 % are remitting local and only 5.9 % are remitting across borders,” the report highlighted.
The report explained that, despite notable progress observed in expanding financial inclusion, the 2025 NFIS results show that 14.0 % of Namibian adults remain financially excluded, a decline from 22.0% in 2017.
“However Financial exclusion continues to disproportionally affect low-income and rural populations largely due to persistent access and affordability constraints. In the urban–rural comparison, financial exclusion is higher in rural areas, at 20.7%, compared to 8.3% in urban areas. By gender, males (15.8%) are more financially excluded than females (12.4%). These findings highlight that while overall exclusion has declined, structural disparities remain,” the report added.
Photo: Namibia Statistics Agency
