By: JG van Graan
While nominal GDP rose to N$245.1 billion in 2024, the real growth rate slowed to 3.7%, down from 4.4% in the previous year.
The slowdown has put a spotlight on Namibia’s heavy reliance on industries like diamond mining and fishing – once the backbone of the economy, but now clearly losing steam.
The message is clear: to thrive, Namibia needs to diversify and evolve.
Still, there are signs of momentum.
Growth projections for 2025 sit at 3.9%, supported by improvements in agriculture and infrastructure, particularly in electricity and water.
But the transformation happening in GDP figures or government policy is only part of the story. On the ground, Namibians are adjusting the way they live, spend, and manage their money.
In 2024, consumer spending in Namibia increased to N$144.938 billion, reflecting a 12.45% rise from the previous year. But it’s not a spending spree. People are prioritising essentials like food, housing, and healthcare.
It’s a shift driven by caution and necessity, and it’s quietly changing the way the market moves.
At the same time, confidence in the future remains surprisingly strong.
A recent study by TransUnion revealed that 70% of Namibians are optimistic about their future income. But nearly half of those surveyed also say they’re struggling to keep up with bills and loan repayments.
It’s a telling contrast: people are hopeful about what’s ahead but still feeling the squeeze in their day-to-day lives. As households reprioritise, the banking sector is undergoing its own transformation.
More Namibians are going digital, using mobile and online platforms to bank, budget, and send money.
Nearly 100 million e-money transactions were made in 2023 alone, showing just how much digital banking has become part of everyday life, especially for people in rural and informal communities who’ve often been left out of the traditional banking system.
But while younger consumers might be the ones driving the shift toward digital solutions, Namibians of all ages are seeking more than just convenience.
As the economy shifts, people want financial partners who understand their day-to-day realities and offer not only smart technology but also real support and human connection.
This is an opportunity to guide the banks through uncharted waters, supporting clients as they navigate unpredictable economic conditions.
Leveraging cutting-edge fintech alongside a broad range of tailored financial products to make a real difference in our clients’ lives.
From helping a small business get off the ground to guiding a young professional through their first investment or supporting a corporate client expanding into new markets.
JG van Graan is the Chief Commercial Officer at Nedbank
