Namibians feel the pinch as N$1 000 buys less than ever

Walk into any Namibian supermarket today with N$1 000 in your pocket, and the question is no longer what to buy, but what you can afford to leave behind.

Across the country, residents say the amount of N$1 000 that once comfortably covered a household’s essentials for weeks now disappears after a single shopping trip – sometimes in a single day.

This week, Namibian Sun spoke to households in the far north, central north and central Namibia, as well as economic analysts, to compare how far N$1 000 could stretch before Covid-19 and what it can realistically buy in 2025.

In Oshakati, Venessa Hamukoto said that before the pandemic, N$1 000 could cover a full grocery basket with staples and basic household items.

Today, the same amount buys far less, she added.

“I often have to reduce items or choose cheaper alternatives,” Hamukoto explained. “It also runs out much faster. Prices keep increasing, especially for food, so the money covers fewer needs than before.”

In Rundu, Annastasia Kandingo put it bluntly: “Groceries, electricity and toiletries used to be covered within the N$1 000, plus extra. Now, N$1 000 lasts me a day. Before, it could stretch two weeks or even a month,” she said.

Kandingo added that electricity units, water, bread, cooking oil, canned food and grains now cost almost twice as much as they did five years ago, a trend confirmed by broader price data.

Essential squeeze

A 2024 Food Price Monitor by First Capital Namibia shows that food inflation remains one of the most stubborn contributors to household pressure, with essential items such as vegetables, meat and grains consistently rising faster than overall inflation.

The report notes that while headline inflation has moderated since the post-pandemic spike, food prices have not followed the same downward path.

For young professionals, the squeeze is even more visible when starting out.

Teopo Mpigana said that during her university years before Covid-19, N$1 000 could cover food and electricity. Today, she spends between N$2 000 and N$2 500 on basic necessities alone.

“If you are moving and trying to settle in a new place, it gets worse. Starting with nothing can easily push expenses to N$3 000,” she said. “Keeping up with basic living costs is becoming difficult.”

The lived experience matches the numbers.

Economic analyst Klaus Schade told Namibian Sun this week that the purchasing power of N$1 000 in December 2019 had dropped to about N$780 by December 2025.

Inflation surged to 6.1% in 2022 from 3.6% in 2021 before slowing to around 3.5% in 2025. However, Schade noted that core inflation, which strips out food and energy, remained higher at 3.8%, masking the pressure households feel most.

“Food prices increased by about 5.6% in 2025, mainly driven by vegetables and meat,” he said. “Rental and electricity prices also rose above the average. These are the items consumers feel the most, while price drops elsewhere go largely unnoticed.”

The First Capital Namibia Food Price Monitor supports this view, showing that basket costs for basic food items have steadily climbed since 2020, with no meaningful reversal despite easing fuel prices.

Schade cautioned that inflation figures are based on an “average” consumption pattern that often does not reflect the reality for low- and middle-income households.

“Our individual spending patterns differ widely,” he said. “It would help if inflation rates were published for different income groups to better guide wage and social grant adjustments.”

For now, residents say the reality is simple: N$1 000 no longer buys time, comfort or choice.

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