Loading svg Please wait while we translate the article
CASH IS KIND: Elsie Kambala, chief operating officer and head of unit trusts at Old Mutual Investment Group. PHOTO: CONTRIBUTED
CASH IS KIND: Elsie Kambala, chief operating officer and head of unit trusts at Old Mutual Investment Group. PHOTO: CONTRIBUTED

Many Namibians still keep cash 'under the mattress'

Only 67% of Namibian adults had a bank account in 2017
People keep cash on hand for a variety of reasons, Kambala said, adding that Namibians may regard it as a safer alternative to saving in a bank, for example.
Jemima Beukes
Despite an increase in digital financial options such as cellphone banking and e-wallet services, many Namibians still prefer to keep their cash under the mattress.

According to an article released by Old Mutual Namibia, citing the World Bank, about 67% of Namibian adults held a bank account in 2017, indicating that a sizable portion of the population lacks access to banking services.

The article - written by Elsie Kambala, chief operating officer and head of unit trusts - said "compared to 47% in 2021, a significant 30% of Namibians choose to keep their savings in cash at home, or as the saying goes, ‘under the mattress’".

"Interestingly, convenience remains the primary reason for unbanked cash savings, with a sizable section of the population still relying on cash savings,” it read.

"These figures mirror a broader trend in financial behaviour, indicating a gradual transition towards formal banking. This includes avoiding banking fees and having easy access to funds. Typically, people hold small percentages of the overall funds at home,” Kambala noted.



Safer alternative

She said people keep cash on hand for a variety of reasons, adding that Namibians save this way as it is regarded as a safer alternative than subjecting their hard-earned dollars to fees. She added that many have limited disposable income in the current economic climate.

Kambala noted that in order to pay for transportation, groceries, airtime and other necessities, many Namibians require cash on a daily basis as using cash instead of other options is more convenient.

“In Namibia, informal traders and low-income workers frequently rely on cash because they do not have bank accounts or because banking services are expensive. Having cash on hand has many benefits, including being accessible in an emergency when electronics or automated teller machines may not be working. Additionally, cash allows for immediate use without requiring electronic transactions. Cash is still an essential component of daily life for many Namibians, particularly those without access to bank cards or online banking services. This is especially true for the vast majority of cash-based informal traders. For many people in Namibia, switching to electronic channels will take time,” she noted.

According to Bank of Namibia statistics, cash is still crucial. Commercial banks received N$10 billion in banknotes in 2023. The volume of coins issued increased from N$14 million in 2022 to N$18 million in 2023, reflecting the consistent need for cash.



[email protected]

Kommentar

Allgemeine Zeitung 2024-11-01

Zu diesem Artikel wurden keine Kommentare hinterlassen

Bitte melden Sie sich an, um einen Kommentar zu hinterlassen

Katima Mulilo: 20° | 37° Rundu: 22° | 37° Eenhana: 21° | 37° Oshakati: 20° | 37° Ruacana: 19° | 37° Tsumeb: 23° | 36° Otjiwarongo: 20° | 36° Omaruru: 18° | 37° Windhoek: 19° | 34° Gobabis: 19° | 36° Henties Bay: 14° | 20° Wind speed: 17km/h, Wind direction: SW, Low tide: 08:56, High tide: 03:15, Low Tide: 21:17, High tide: 15:18 Swakopmund: 14° | 15° Wind speed: 15km/h, Wind direction: NW, Low tide: 08:54, High tide: 03:13, Low Tide: 21:15, High tide: 15:16 Walvis Bay: 13° | 20° Wind speed: 18km/h, Wind direction: W, Low tide: 08:54, High tide: 03:12, Low Tide: 21:15, High tide: 15:15 Rehoboth: 18° | 36° Mariental: 20° | 38° Keetmanshoop: 21° | 38° Aranos: 19° | 39° Lüderitz: 15° | 28° Ariamsvlei: 20° | 38° Oranjemund: 14° | 21° Luanda: 25° | 26° Gaborone: 20° | 37° Lubumbashi: 18° | 32° Mbabane: 15° | 35° Maseru: 15° | 32° Antananarivo: 17° | 30° Lilongwe: 21° | 31° Maputo: 20° | 36° Windhoek: 19° | 34° Cape Town: 16° | 24° Durban: 18° | 26° Johannesburg: 19° | 32° Dar es Salaam: 25° | 31° Lusaka: 19° | 31° Harare: 17° | 31° Currency: GBP to NAD 22.78 | EUR to NAD 19.13 | CNY to NAD 2.48 | USD to NAD 17.64 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.35 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.65 | ZWL to NAD 0.04 | BRL to NAD 3 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 132.81 | USD to AOA 909.05 | USD to BWP 13.36 | USD to EGP 48.88 | USD to KES 129.2 | USD to NGN 1650.44 | USD to ZAR 17.65 | USD to ZMW 26.78 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1867.43 Up +0.66% | Casablanca Stock Exchange (CSE) MASI 14269.96 Up +0.72% | Egyptian Exchange (EGX) 30 Index 30658 Up +0.94% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 735.86/OZ DOWN -0.004 | Copper US$ 4.34/lb DOWN -0.0012 | Zinc US$ 3 084.50/T UP 0.27% | Brent Crude Oil US$ 73.50/BBP DOWN -0.0128 | Platinum US$ 990.09/OZ UP +0.02% Sport results: Weather: Katima Mulilo: 20° | 37° Rundu: 22° | 37° Eenhana: 21° | 37° Oshakati: 20° | 37° Ruacana: 19° | 37° Tsumeb: 23° | 36° Otjiwarongo: 20° | 36° Omaruru: 18° | 37° Windhoek: 19° | 34° Gobabis: 19° | 36° Henties Bay: 14° | 20° Wind speed: 17km/h, Wind direction: SW, Low tide: 08:56, High tide: 03:15, Low Tide: 21:17, High tide: 15:18 Swakopmund: 14° | 15° Wind speed: 15km/h, Wind direction: NW, Low tide: 08:54, High tide: 03:13, Low Tide: 21:15, High tide: 15:16 Walvis Bay: 13° | 20° Wind speed: 18km/h, Wind direction: W, Low tide: 08:54, High tide: 03:12, Low Tide: 21:15, High tide: 15:15 Rehoboth: 18° | 36° Mariental: 20° | 38° Keetmanshoop: 21° | 38° Aranos: 19° | 39° Lüderitz: 15° | 28° Ariamsvlei: 20° | 38° Oranjemund: 14° | 21° Luanda: 25° | 26° Gaborone: 20° | 37° Lubumbashi: 18° | 32° Mbabane: 15° | 35° Maseru: 15° | 32° Antananarivo: 17° | 30° Lilongwe: 21° | 31° Maputo: 20° | 36° Windhoek: 19° | 34° Cape Town: 16° | 24° Durban: 18° | 26° Johannesburg: 19° | 32° Dar es Salaam: 25° | 31° Lusaka: 19° | 31° Harare: 17° | 31° Economic Indicators: Currency: GBP to NAD 22.78 | EUR to NAD 19.13 | CNY to NAD 2.48 | USD to NAD 17.64 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.35 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.65 | ZWL to NAD 0.04 | BRL to NAD 3 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 132.81 | USD to AOA 909.05 | USD to BWP 13.36 | USD to EGP 48.88 | USD to KES 129.2 | USD to NGN 1650.44 | USD to ZAR 17.65 | USD to ZMW 26.78 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1867.43 Up +0.66% | Casablanca Stock Exchange (CSE) MASI 14269.96 Up +0.72% | Egyptian Exchange (EGX) 30 Index 30658 Up +0.94% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 735.86/OZ DOWN -0.004 | Copper US$ 4.34/lb DOWN -0.0012 | Zinc US$ 3 084.50/T UP 0.27% | Brent Crude Oil US$ 73.50/BBP DOWN -0.0128 | Platinum US$ 990.09/OZ UP +0.02%