Consumers rein in spending

Namibian consumers are cutting non-essential spending, paying down debt and building emergency savings as affordability pressures continue to shape household finances, according to TransUnion’s Consumer Pulse Study for the second quarter of 2026.The survey found that 52% of consumers had reduced discretionary spending in the preceding three months, while 32% said they were paying down debt faster and 24% were saving more towards emergency funds.About 42% of respondents expected to be unable to meet at least one current bill or loan payment in full, highlighting the gap between improving financial sentiment and households’ ability to meet their day-to-day obligations.The findings point to consumers taking a more cautious approach to spending and borrowing while remaining hopeful about their financial prospects.“Namibians showed a growing focus on financial resilience as they sought greater control over their household finances,” said Lara Enslin, chief executive of TransUnion Namibia.“Consumers are not simply reacting to higher living costs. They are actively adjusting spending habits, reducing debt and building financial safety nets that can help them navigate uncertainty and improve their long-term financial stability.”Income optimism contrasts with current financial pressuresThe survey found that 43% of respondents said their household finances were better than expected, while 45% said they were worse than planned.Income trends over the preceding three months were mixed. Some 28% reported an increase in household income, while 39% said their income had remained unchanged. About a third reported a decline.Looking ahead, however, 73% expected their income to increase over the next 12 months, while about 71% expressed optimism about their financial prospects.The positive outlook comes alongside continued concerns about meeting financial commitments. Among respondents who anticipated difficulty paying their bills or loans, 32% said they would make partial payments, while 31% planned to take on additional or temporary work.Another 27% said they would borrow from friends or family, and 22% expected to draw on their savings.Of particular concern, 17% of those anticipating payment difficulties said they did not know how they would meet their obligations.Credit remains important, but affordability is a barrierAccess to credit continues to be viewed as an important financial tool, although many consumers remain uncertain about their ability to obtain affordable lending.TransUnion found that 89% of respondents considered access to credit and lending products important for achieving their financial goals. However, only 36% believed they had sufficient access, while 46% said they did not.The difference between the perceived importance of credit and its actual availability highlights a challenge for lenders seeking to serve consumers whose incomes and repayment capacity remain under pressure.About 37% of respondents planned to apply for new credit or refinance existing borrowing over the following 12 months, down seven percentage points from the second quarter of 2025.A further 44% had considered applying for credit but did not proceed.Among those who abandoned their plans, the cost of borrowing was the leading reason, cited by 38% — an increase of 14 percentage points from a year earlier. Another 32% said they had decided they no longer needed credit, while 29% cited their income or employment status.The survey also found that 30% of consumers planning credit activity intended to apply for a personal loan, while an equal proportion planned to seek a student loan. Vehicle finance or leasing was considered by 23%, and 20% intended to apply for a mortgage or home loan.Households prioritise essentials and debt reductionChanges in household budgets reinforce the picture of consumers becoming more selective about their spending.Beyond the 52% who reduced discretionary expenditure, 34% cancelled subscriptions or memberships, while 28% cancelled or reduced digital services such as mobile, television and internet packages.At the same time, 32% reported paying down debt faster, suggesting that some households are using available financial resources to strengthen their balance sheets.However, expectations for the coming three months indicate continued pressure on spending decisions.Some 35% expected expenditure on bills and loans to increase, while 32% anticipated a decline in discretionary spending. A further 43% expected to increase contributions to retirement funds or investments, although 25% expected these contributions to remain unchanged and 12% anticipated reducing them.Digital fraud adds another layer of riskFinancial pressure is not the only challenge facing consumers. The survey also highlighted widespread exposure to digital fraud.About 65% of respondents said they had been targeted by a fraud attempt in the preceding three months. Of the full sample, 10% reported becoming victims, while 55% had been targeted without suffering a loss.Money or gift card scams were the most commonly reported schemes, affecting 40% of those targeted. Vishing, or fraudulent calls, was reported by 32%, while phishing emails and smishing text messages were each reported by 29%.Consumers have taken steps to strengthen their digital security. Some 58% said they had changed passwords in the preceding 60 days, while 31% had adopted passwordless logins or additional authentication measures.However, 28% had taken no action in response to cybersecurity concerns.Among those who had done nothing, 74% said they were unsure what steps to take, pointing to a need for clearer public guidance on protecting personal information and financial accounts.The survey was conducted by TransUnion in partnership with research provider Dynata between 29 April and 19 May 2026. It covered 258 adults aged 18 and older living in Namibia, using an online research panel.TransUnion said the results were statistically significant at a 95% confidence level, with a calculated margin of error of plus or minus 6.1 percentage points. The findings are unweighted and should be interpreted with the sample size and methodology in mind.

Consumers rein in spending

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Namibian Sun 2026-10-12

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Consumers rein in spending

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Namibian Sun 2026-10-12

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