Staff Reporter
POPULAR Democratic Movement member of Parliament, Inna Hengari, has questioned the large profits that banking institutions make while many Namibians struggle with debt.
It is reported that Namibians borrowed N$7.2 billion from microlenders during the first quarter of 2024.
“Recent reports indicate that nearly half of Namibians, especially civil servants, are drowning in debt. This is a serious issue that needs urgent attention. Meanwhile, lending institutions, like the infamous Letshego, made a profit of N$199 million in just six months, which highlights the big gap between the financial success of lending institutions and the struggles of ordinary people,” Hengari said.
She added that many Namibians are turning to backyard loan sharks who charge very high interest rates, worsening their situation.
“There is therefore a need to have a real discussion about whether our current laws, like the Usury Act 73 of 1968 (as amended), the Bank of Namibia Act, the Microlending Act, and other existing laws, are truly protecting our people from exploitation. I propose that this Assembly debates, discusses, and strengthens this motion and that, following the adoption of recommendations in this House, this motion be referred to the relevant standing committee,” Hengari said.