Nedbank Namibia embraces storytelling to boost financial literacy

 

 

In a world where financial tools and services are more accessible than ever, one question looms large: why are so many people struggling with financial health? Despite the abundance of financial services, platforms, and tools available in the marketplace, consumers are more vulnerable than ever. As life increasingly gets busier, these impacts are compounded, considering the sheer speed at which one often must take decisions that may have an extended impact on so many facets of everyday life.

Insights from a local financial services institution reveal troubling statistics for Namibians: 27% are finding it difficult to manage debt, 1 in 4 have fallen behind on household bills in the past year, and a staggering one-third have turned to friends and family to cover expenses. Additionally, 30% have had to dip into their savings to make ends meet.

“Consumers constantly face decisions that can either enhance or harm their financial well-being, and these choices often carry long-term consequences,” explains Gernot de Klerk, Head of Marketing & Communications at Nedbank Namibia. For instance, accumulating excessive debt can lead to high-interest rates, living paycheck to paycheck, and even bankruptcy. The lack of retirement savings, a reality for 54% of Namibians, is increasingly pushing elderly individuals into poverty.

“In today’s complex financial landscape, possessing money management skills is crucial. This is why the concept of ‘financial literacy’ has grown in significance. It equips individuals with the knowledge necessary to establish a secure and prosperous future,” De Klerk says. “This isn’t just about dollars and cents – it’s about securing a stable future for oneself and loved ones, which in turn bolsters the economy.”

While a significant portion of Namibians, 71% according to the World Bank’s 2021 Global Findex Database, have bank accounts, simply possessing bank accounts does not signify the start of financial inclusion or financial literacy. “Financial inclusion is often defined narrowly as granting access to financial services for both banked and unbanked individuals,” he explains. “However, genuine financial inclusion goes beyond mere access; it’s about ensuring that people use these services effectively to meet their needs. Simply increasing access points, including digital banking channels, does not guarantee inclusion or even financial literacy.”

Although many skills fall under the broad umbrella of financial literacy, the most important are arguably budgeting – knowing how to manage expenses within one’s income; debt management – understanding credit, knowing when and how to borrow, and effectively managing loans and repayments; as well as saving and investing – learning to build and grow capital over time.

“These skills are essential for achieving financial stability and security,” asserts De Klerk. “The essence of what we continuously strive to achieve for our clients has been documented in a booklet, ‘Helping you make the most of your money,’ in association with the Financial Literacy Initiative, which is squarely aimed at providing crucial information for maintaining financial health.”

According to a 2017 report by the Namibia Statistics Agency, the financial literacy of the average Namibian above the age of 16 was last estimated at 42.75% through a survey undertaken in 2013. However, the average score for financial knowledge (51.18%) was higher than that for financial behavior (32.26%).

In response to this pressing need to change financial behavior, Nedbank Namibia launched the Mokalefa campaign, which translates to “In the taxi” in Oshiwambo. Released in July 2024, the Mokalefa campaign takes a departure from education curriculums, opting instead for a humorous radio series complemented by engaging social media content and a YouTube channel.

Throughout Mokalefa’s 8 episodes, passengers from diverse backgrounds discuss their financial concerns during their journey. Along the way, a knowledgeable passenger emerges as a financial expert, offering practical advice. The first episode introduces us to the characters: Tate Joe, the cheerful driver; Mr. Thomas, the old-school handyman; Ousie Beline, the single mom; Shae, the social media-savvy restaurant manager; and Nelson, the hopeful new teacher.

“The campaign seeks to fill knowledge gaps with high jinks playing out in a setting familiar to so many Namibians: the taxi ride,” explains De Klerk. “This innovative approach addresses financial challenges in a relatable manner, aiming to make financial literacy enjoyable and accessible to everyone.”

He adds: “By educating the public, the campaign aims to empower Namibians to take charge of their finances, and it benefits our business as well. A financially literate population is less susceptible to scams and more likely to make informed financial decisions, which fosters a mutually beneficial relationship between banks and their clients.”

The goal of the Mokafela campaign and the focus for Nedbank Namibia, De Klerk emphasizes, is to prioritize demographics often overlooked in terms of financial inclusion and literacy: women, young people, and the marginalized. In sub-Saharan Africa, experts believe that only 49% of women have access to bank accounts when compared with 61% of men, highlighting a significant gender gap in account ownership. This 12-percentage point difference is one of the highest globally, trailing closely behind the Middle East and North Africa.

Furthermore, while more than two-thirds of middle-to-upper-class Namibians have bank accounts, only 56% of those in lower income brackets do, according to the 2021 Global Findex. “No matter how you slice the data, women, the marginalized, and those with lower levels of education consistently lag behind the broader population,” De Klerk elaborates. “Governments, financial institutions, non-profits, and individuals must collaborate to democratize financial education in our country.”

Improving financial literacy should be a cornerstone of Namibia’s economic empowerment agenda. By providing individuals with the knowledge and skills to navigate the financial landscape, Namibia can unleash its full economic potential and build a brighter future for its people – especially the next generation.