Unbridled materialism feeds the sharks, Kapofi says
Defence minister Frans Kapofi has warned that the country's spiralling culture of excessive consumption, particularly among young people, poses a greater threat to financial stability than the predatory actions of unscrupulous lenders.
Kapofi made the remarks during Tuesday’s parliamentary debate on a motion tabled by Popular Democratic Movement (PDM) MP Inna Hengari, aimed at tackling Namibia’s deepening debt crisis and reforming the country’s financial architecture.
Hengari argued that the current system, anchored to the South African rand, restricts Namibia’s monetary sovereignty and sustains high lending rates of between 10% and 40%, trapping many in debt cycles.
“I point to our 15% current account deficit and rising sovereign debt costs, which threaten public investment and fiscal space, echoing the African Development Bank’s 2024 report on the global financial system’s failure to support countries like ours,” Hengari told Namibian Sun yesterday.
She also drew attention to the growing gap between struggling Namibians and the soaring profits of financial institutions, highlighting a stark disparity between the struggles of ordinary Namibians and the thriving earnings of financial institutions.
Who benefits?
Hengari cited Capricorn Group's reported profit after tax of N$1.74 billion for the year ending June 2024, with a further N$1.06 billion in the six months to December 2024, a 28.4% surge.
"Bank Windhoek, a key player under Capricorn, saw its net profit after tax grow 14.4% to N$1.25 billion in 2024," Hengari said.
She said even smaller players, like Letshego, recorded N$199 million in profits over six months in 2024, while critical national priorities, such as housing, are ignored.
"This disconnect troubles me deeply, raising urgent questions about who this so-called 'resilient' financial sector truly serves,” Hengari said.
Manage greed
Although Kapofi acknowledged the existence of merciless “sharks”, he expressed concern about growing societal needs.
He insisted that society must also take responsibility for its role in fuelling debt traps through unchecked consumerism.
"Our needs, and especially our wants, are spiralling out of control. As a result, if we don’t manage those wants, then, regardless of how much money we have, if our appetite for acquisition is not controlled, we can forget about financial stability," he warned.
“I'm not suggesting that the way these ‘sharks’ are taking money from people is justifiable. However, I want to appeal to society, especially the young, as these are real-life issues," Kapofi said, adding that many people jump into things without first assessing what they can afford.
The minister cautioned further: "We cannot just put the blame entirely on others. These people are in business. They want to make money. But they are not coming to our houses to look for us, we are going to them."
He said an unchecked desire for things "is a major driver of the problem. No matter how much money you have, today you want a Rolls-Royce, tomorrow a Jaguar, the next day something else, you see what another person has, and suddenly you want it too."
Vulture capitalism out of control
Swapo MP Tobie Aupindi joined the discussion, arguing that "free market capitalism has spun out of control, replaced by free market vulture capitalism where the rich keep getting richer, the poor keep getting poorer, and the fat cats continue sucking the blood of the poor. We cannot allow that to continue."
He added: “Venture has become vulture capital. You have a situation where someone declares housing, as enshrined in the Constitution, a human right and national priority."
Aupindi claimed that the banking and financial sector give out loans and "suck the life out of you".
“Just look at the statistics. In fact, [Hengari] coincidentally pointed out that one financial institution made N$199 million in profit.
"In 2024 alone, three banks made a combined N$2.6 billion in net profit after tax. And they feel no remorse whatsoever,” Aupindi stressed, adding that 277 houses were repossessed in 2023.
“If free market capitalism has spun out of control, the right thing to do is regulate and reverse that trajectory. Are these financial institutions so important to our economy that we protect them at the expense of our people? They are not. They are not more important than the people we serve,” Aupindi said.
Deadly problem
Swapo MP James Uerikua linked financial despair to the country’s high suicide rate.
“Last year, 542 suicide cases were reported by the Namibian Police. Of those, 449 were men and 80 were women. Biblically, we are told that the man is the head of the household.
"He is the enabler, the provider, and you have to do everything and anything to ensure your household is taken care of. And as a provider, men undergo enormous pressure when they are unable to provide,” he said.
Uerikua further said many end up taking the shortest route possible by ending their lives.
"But when you take your own life, the real danger is that your family is left shattered and your children are left without a future,” he said.
[email protected]
Kapofi made the remarks during Tuesday’s parliamentary debate on a motion tabled by Popular Democratic Movement (PDM) MP Inna Hengari, aimed at tackling Namibia’s deepening debt crisis and reforming the country’s financial architecture.
Hengari argued that the current system, anchored to the South African rand, restricts Namibia’s monetary sovereignty and sustains high lending rates of between 10% and 40%, trapping many in debt cycles.
“I point to our 15% current account deficit and rising sovereign debt costs, which threaten public investment and fiscal space, echoing the African Development Bank’s 2024 report on the global financial system’s failure to support countries like ours,” Hengari told Namibian Sun yesterday.
She also drew attention to the growing gap between struggling Namibians and the soaring profits of financial institutions, highlighting a stark disparity between the struggles of ordinary Namibians and the thriving earnings of financial institutions.
Who benefits?
Hengari cited Capricorn Group's reported profit after tax of N$1.74 billion for the year ending June 2024, with a further N$1.06 billion in the six months to December 2024, a 28.4% surge.
"Bank Windhoek, a key player under Capricorn, saw its net profit after tax grow 14.4% to N$1.25 billion in 2024," Hengari said.
She said even smaller players, like Letshego, recorded N$199 million in profits over six months in 2024, while critical national priorities, such as housing, are ignored.
"This disconnect troubles me deeply, raising urgent questions about who this so-called 'resilient' financial sector truly serves,” Hengari said.
Manage greed
Although Kapofi acknowledged the existence of merciless “sharks”, he expressed concern about growing societal needs.
He insisted that society must also take responsibility for its role in fuelling debt traps through unchecked consumerism.
"Our needs, and especially our wants, are spiralling out of control. As a result, if we don’t manage those wants, then, regardless of how much money we have, if our appetite for acquisition is not controlled, we can forget about financial stability," he warned.
“I'm not suggesting that the way these ‘sharks’ are taking money from people is justifiable. However, I want to appeal to society, especially the young, as these are real-life issues," Kapofi said, adding that many people jump into things without first assessing what they can afford.
The minister cautioned further: "We cannot just put the blame entirely on others. These people are in business. They want to make money. But they are not coming to our houses to look for us, we are going to them."
He said an unchecked desire for things "is a major driver of the problem. No matter how much money you have, today you want a Rolls-Royce, tomorrow a Jaguar, the next day something else, you see what another person has, and suddenly you want it too."
Vulture capitalism out of control
Swapo MP Tobie Aupindi joined the discussion, arguing that "free market capitalism has spun out of control, replaced by free market vulture capitalism where the rich keep getting richer, the poor keep getting poorer, and the fat cats continue sucking the blood of the poor. We cannot allow that to continue."
He added: “Venture has become vulture capital. You have a situation where someone declares housing, as enshrined in the Constitution, a human right and national priority."
Aupindi claimed that the banking and financial sector give out loans and "suck the life out of you".
“Just look at the statistics. In fact, [Hengari] coincidentally pointed out that one financial institution made N$199 million in profit.
"In 2024 alone, three banks made a combined N$2.6 billion in net profit after tax. And they feel no remorse whatsoever,” Aupindi stressed, adding that 277 houses were repossessed in 2023.
“If free market capitalism has spun out of control, the right thing to do is regulate and reverse that trajectory. Are these financial institutions so important to our economy that we protect them at the expense of our people? They are not. They are not more important than the people we serve,” Aupindi said.
Deadly problem
Swapo MP James Uerikua linked financial despair to the country’s high suicide rate.
“Last year, 542 suicide cases were reported by the Namibian Police. Of those, 449 were men and 80 were women. Biblically, we are told that the man is the head of the household.
"He is the enabler, the provider, and you have to do everything and anything to ensure your household is taken care of. And as a provider, men undergo enormous pressure when they are unable to provide,” he said.
Uerikua further said many end up taking the shortest route possible by ending their lives.
"But when you take your own life, the real danger is that your family is left shattered and your children are left without a future,” he said.
[email protected]
Comments
Namibian Sun
No comments have been left on this article