Namibia’s Central Bank governor Ipumbu Shiimi on Wednesday expressed concerns at the rate which Namibians were borrowing in order to support their consumption activities.
Shiimi, who addressed journalists, highlighted that the number of people borrowing for personal loans stood at 23% and was rising.
Shiimi noted that the pressure being exerted on the economy was pushing people to resort to short-term debt to support their consumption, a move the bank believes will cause problems for the Namibia’s economy.
“I don’t believe that it is sustainable to continue funding our lifestyles with short term loans especially consumption loans. My advice again, is people should cut where they need to cut and don’t engage in debt,” Shiimi said.
Shiimi also urged Namibians to reduce the expenditure and quit living expensive lifestyles they could not afford.
“I am equally concerned as you are on personal loans and short term loans in the form of credit cards. It will create problems for you as a borrower, for the lender and the economy,” Shiimi added.