Finances

Employment and Employers in Namibia

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Top Contributers to Namibia's Employment Sector

Mining
Services
Food/Beverage Processing
Fishing
Construction
Tourism

Largest Employers:

National, Regional, Local Governments
FNB Namibia
Debmarine Namibia - Diamonds
Telecom Namibia

Unemployment

Namibia reportedly has the highest unemployment rate in the World at over 50%.

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Possible Unemployment Factors

Slob Job Creation
Prevalent gap between poverty, labor, and secondary labor markets
Very little manufacturing - extraction economy
Very low Human Capital Index (HCI) - 117th out of 157 countries

HCI - How much a nation invests in the health and education of its future workforce

Check your Knowledge!

This is a quick quiz designed to test your knowledge before completing the training. It will not impact your ability to become an MSR member, but it will show you what you've learned at the end of the training. Please complete the following form by clicking "next" to go to each question. When you are finished answering, click submit. You will then see which questions you answered correctly.

Then scroll down to complete the training.

Issues with Inflation

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What is inflation?

Inflation is the general increase in the price of goods and services overtime. When prices rise $100 the result is that you can buy less goods and services.

Consumer Price Index (CPI) is a measurement of the cost of living over time. Over the past 10 years, Namibia's CPI increased 58%.

2024 inflation rate = 3.39%

Wages

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What is minimum wage?

Minimum wage is the lowest legal compensation a company is permitted to give to its workers.

The government has a plan to increase the minimum wage up to $18/hour in certain sectors over the next few years.

Financial Service Sector

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Benefits of Banks and Insurance

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Banks

Keeps your money safe
Opportunity for loans
Makes buying things easier: mobile banking, apps, cards, etc.

Insurance

Protects you against risk: usually financially and health
Makes expensive care/repair affordable

Problems with Banks and Insurance

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Many fees
Use of confusing words and contracts that might deceive you
They are a business operating to make money, this sometimes leads them to caring more about money than customer service
Not enough bank competition in Namibia, so banks have too much power over contracts, interest rates, policies, etc.

Types of Loans

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Secured Loans

Backed by assets (house, car, etc.)
In the event of default (non-payment of loan) lender takes possession of assets

Unsecured Loans

Not backed by assets
Relies on ability of lender to repay (you must have money)
Usually offer a much smaller loan

Interest

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Flat Rate

Calculated upfront on the amount of money borrowed over the entire period

Fixed Rate

Calculated on the reducing balance basis & interest rate does not fluctuate during the loan tenure

Floating Rate

Calculated on reducing balance basis with interest rate tied to index or base rate that can fluctuate over the period of the loan

Private Lenders

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What are private lenders?

Private lenders are individuals or smaller organizations that offer loans directly to borrowers without going through banks or credit unions.

Very high interest rates 25-30% and short-term loans. Watch out!

Income

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Active Income:

Derived from employment (salary) or business (profit)
Once you stop working or conducting business the income stops

Passive Income:

Derived from savings or investments
Continues even when not working or conducting business
Examples: interest from savings, rental from letting premises, & profit from sale of livestock or belongings

Needs vs. Wants

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Needs

Food
Accomodation
Clothing
Quality time with family
Transport
Cell phone

Wants

Eating out or KFC takeaway
Own a house
Jewelry & luxury items
Entertainment
Own a car
Cell phone with features

Expenditures

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What are the different Expenditures?

Fixed expenses
- Fixed expenses cost the same amount each month and are usually paid on a regular basis. One example of a fixed expense is rent.
Variable expenses
- Variable expenses can change based on the day, week or month.
Optional (discretionary) expenses
- Although discretionary spending is often a variable expense, variable expenses can be necessities, too
- For instance, medical costs

Budgeting

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What to Budget For:

Fixed Expenses
Variable Expenses
Savings
Optional Expenses

What to Save For:

For An Emergency
For Future Educational Needs
For A Planned Event
To Buy Something
To Start A Business
Holiday/Vacations
Old Age, Retirement
Investments

Why Save?

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Take control of your finances and future
Routinely meet obligations
Turn dreams into reality- buy the things you always wanted
Expand your assets and/or business
Avoid paying interest
Eliminate the possibility of being a burden to your family

Activity Break: What are the three types of expenditures? What do you budget for? What do you save for?

Click the "plus" button to make a new post. Also reply to another person.

Example: Buying Furniture on Credit

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Check Your Understanding!

This is a quick quiz designed to test your knowledge after completing the training. It will not impact your ability to become an MSR member, but it will show you what you've learned at the end of the training. Please complete the following form by clicking "next" to go to each question. When you are finished answering, click submit. You will then see which questions you answered correctly.

This is the last portion of the Finances training.

You Have Now Completed the

Finances Training

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