By: David Shoombe
In accordance with the government’s goals of increased national financial inclusion, MTC – in partnership with Letshego – launched Taamba Maris, a short-term loan service targeting those unable to apply at mainstream financial institutions.
According to Letshego Micro Financial Services Namibia chief executive officer, Melvin Angula, the aim of launching the short term-loan is to assist people not in possession of payslips and bank accounts in settling immediate bills.
With the maximum loan amount set at N$1500, the new service prides itself in its ability to calculate and determine a client’s limit so as to avoid mounting debts. Furthermore, the system is designed to allow users to access the service without using internet. “We do not want to leave anyone behind. Therefore, we are very intentional to include the people who use katoshes to access this service,” said Angula.
The Taamba Maris instant loan was presented as an alternative to access resources and funding for business growth in Namibia. The service is in compliance with Bank of Namibia and Namfisa’s regulations, having pre-approved 6,000 users already.
Economist Peter Frans noted that this new development will be a game changer for small and medium-sized enterprises (SME) operators who do not have accounts and access finance to boost their stocks. However, he stated that “there is a need for financial literacy which can protect the financial utilisation and avoid further debts at the early stage.”
Selma Shingenge, a business researcher, echoed these sentiments saying: “Accessing money without collateral is great, but only when handled properly,” encouraging financial education to be at the centre of financial inclusion. Shingenge went on to question how users would repay a N$1500 loan when repaying N$4 airtime on the existing Taamba service already proved difficult.
As a vendor, Jason Kalenga indicated that access to this money “will now allow unemployed youth and women to start their own businesses.” He, however, cautioned that mismanagement could lead to financial stress and demoralise a great deal of SME operators.
According to the Bank of Namibia Financial Sector Transformation Strategy 2025-2035, the aim is to attain a 95% financial inclusion rate at the national level, and 75% for the rural population by 2035.
The strategy also indicates that by 2035, it expects an annual outcome of 70% of informal businesses and startups having access to finance from formal financial institutions.
Namfisa noted that by the end of 2024, Namibians owed N$8.1 billion to cash loan businesses.
