2017 Namibia Financial Inclusion Survey Results by Mr. Daniel Oherein Manager: Social Statistics Division

Outline Background and Objectives Survey methodology Demographic characteristics Income Financial inclusion Landscape of financial access Financial products Conclusion

Background Individual – based sample survey 16+ Focuses on individuals aged 16 years or older Previously conducted in 2004, 2007 and 2011 through the FinScope survey of South Africa’s FinMark Trust Countrywide survey, however results are only representative at national level

Objectives 01 To measure the levels of financial inclusion (inclusive of formal and informal usage) 02 To describe the landscape of access (type of products and services used by financially included) 03 To stimulate evidence-based dialogues that will lead to interventions to deepen financial inclusion strategies 04 Provide information on new opportunities for increased financial inclusion and usage.

Linkages to the SDGs and NDP5 Sustainable Development Goals (2015-2030) NDP5 (2017-2022) and SADC Financial Inclusion Strategy (2016-2021)

Methodology Target population → non-institutional population residing in private households in Namibia, aged 16 years or older. Fieldwork duration → October to November 2017 Data collection: face-to-face interviews administered in CAPI, data captured in the Survey To Go application. Only one randomly selected person was interviewed per household Survey sample was obtained from 151 PSUs across all 14 regions → 1,863 households (and consequently persons).

The error of non-response was much higher in urban areas Response Rates Region Expected Households Responding Households Response Rate Namibia 2114 1863 88.1 Urban 1078 862 80.0 Rural 1036 1001 96.6 The error of non-response was much higher in urban areas

Results Demographic characteristics Income Financial Inclusion Landscape of financial access Financial products

Demographic Characteristics

Demographic Characteristics Adult population in Namibia (16+) = 1 457 919

Demographic Characteristics Adult population by sex

Demographic Characteristics Adult population by area: urban/rural

Demographic Characteristics Age distribution

Demographic Characteristics Highest level of education

Income

Main Source of Income

Personal Monthly Income

Receiving Income Channel of receiving income

Receiving Income Frequency of receiving income

Income Handling Ease of keeping up with financial commitments

Income Handling Making income last till next one

Financial Inclusion

Definitions

Financial Inclusion and Exclusion Rates Financial inclusion rates (%) Financial exclusion rates (%)

Formal and Informal Financial Inclusion Formally served (%) Informally served (%)

Formal Financial Inclusion Banked (%) Formal but non-banked (%)

Understanding Financial Exclusion Results show that financial exclusion rates are higher for; Rural areas Males 16-20 age group Those married traditionally and those in consensual unions Adults whose highest level of education is Kindergarten/day-care and adults that never attended school

Landscape of Financial Access

The Access Strand

Access Strand by Sex

Access Strand by Area: urban/rural

Comparing Access Across Countries

Landscape of Access in 2011 and 2017 The survey uses the landscape of access to illustrate the degree to which financially included individuals have/use financial products and services. In 2017, the financial inclusion in Namibia is mainly driven by Transactions (81.5%) and Savings (80.7%), as was in 2011.

Ownership of bank and smartcard accounts Bank account to their name Smart card account to their name

Banking Banking channels considered most comfortable to use

Drivers of Banking Products and Services in Namibia

Access to Infrastructures

Financial Products Savings Credit Insurance Remittances

Savings Main factors considered in choosing a savings product

Savings Barriers to saving

Savings Strand 56.7 percent of adults have or use savings products from banks. 3.4 percent of adults in Namibia have/use savings products from other formal but non-bank institutions. 2.9 percent rely on informal mechanisms such as savings groups, and do not have formal (bank or non-bank) savings mechanisms. 17.5 percent of adults in Namibia keep all their savings at home, and do not have or use formal or informal savings products or mechanisms. 19.5 percent of adults reported that they do not save neither at home nor through an informal or formal financial service provider.

Credit Deciding factors for borrowing/loan products

Credit Barriers to credit

Credit Strand 12.8 percent of adults in Namibia have or use credit/loan products from banks. 4.6 percent have or use credit/loan products from other formal but non-bank institutions. 6.7 percent of adults only rely on informal mechanisms such as informal money-lenders. They do not have any formal financial credit/loan products. 18.0 percent only borrow from friends and family, and they do not have or use formal or informal credit/loan products or mechanisms. 57.9 percent reported that they do not borrow neither from friends/family nor from formal or informal financial service providers.

Insurance Unforeseen things that happened in the past six months that affected income negatively

Insurance Strand Individuals who have or use insurance products or services from a formal service provider (30.0 percent). This includes both long and short term insurance. Individuals who rely on informal mechanisms (0.1 percent). Individuals who do not have or use insurance products or services, either formal or informal (69.9 percent).

Remittance Strand 37.8 percent of the eligible population uses remittance products from banks. 6.0 percent use formal non-bank remittance products to remit some or all of their income. 5.0 percent remit via informal mechanisms. Only 2.3 percent of the eligible population remits via family and friends only (they have no bank, formal-non bank or informal remittance products). 49.0 percent do not use any remittance products or services.

Conclusion Financial inclusion rate in Namibia has increased between 2011 and 2017, although the increment rate is lower than that of between 2007-2011. Usage of financial products/services; Majority save their money with formal banks. Borrowing money is low in Namibia. Majority do not have/use insurance products/services. Remittance in Namibia is low.

NSA App For all these statistics, download the NSA Mobile Application.

Thank You