Financial Wellness Must Go Beyond Banking Access – Mekondjo Erastus

Namibian households will need more than financial education and access to banking products to improve their financial wellbeing, with the success of financial wellness programmes depending on whether people can save more, manage debt and cope with unexpected expenses, Mekondjo Erastus, Head of Research, Environmental, Social and Governance (ESG) Advisory at Monasa Advisory & Associates, has stressed.

Speaking to Business Pulse 360° on Saturday, about Bank Windhoek and the Evangelical Lutheran Church in Namibia’s (ELCIN) new financial wellness partnership, Erastus urged the institutions to measure improvements in household finances rather than count the number of people attending workshops or opening bank accounts.

“Financial wellness programmes are essential for Namibian households,” he said, warning that their effectiveness depends on whether the lessons change people’s day-to-day financial behaviour.

He pointed to household budgeting and a better understanding of interest rates, fees and borrowing commitments as practical ways to help people manage debt and prepare for unexpected expenses.

“Practical financial education such as household budgeting as well as clear explanations of interest rates, fees and borrowing commitments would significantly assist households in managing debt burdens and their ability to absorb unexpected expenses,” Erastus said.

However, he cautioned that financial education cannot resolve every challenge facing households, particularly when incomes are insufficient to cover essential living expenses.

“Financial education alone cannot substitute for adequate income or remove the pressure of essential living expenses,” he stressed.

Saying that even when people understand how to budget and borrow responsibly, their ability to build savings will still depend on how much money remains after paying for necessities.

Erastus said partnerships between financial institutions and established community organisations could contribute to Namibia’s economic development by strengthening household resilience over time, although their impact would not necessarily translate into an immediate increase in national economic growth.

The Bank Windhoek–ELCIN agreement was signed on Monday, 19 October 2026, aiming to bring financial education, wellness support and banking services closer to more than 1,200 ELCIN employees and their families, while also providing commercial banking support to the church’s parishes, subsidiaries and associated entities.

Yet Erastus stressed that reaching people with financial products is not the same as ensuring they can use those services effectively.

“Meaningful inclusion is defined when people can afford the services and if products that meet their specific needs are actually available,” he said.

Erastus urges financial institutions to consider the barriers that prevent underserved communities from benefiting from banking services, including unaffordable fees, limited access to digital tools and products designed around regular salaries rather than irregular incomes.

He also encouraged the use of financial education materials in different languages to make the information accessible to more people.

In addition, Bank Windhoek’s Financial Director Zenaune Kamberipa said the partnership was intended to promote financial wellness, financial literacy and greater financial inclusion.

“Its value will lie in better-informed financial choices, accessible support and a relationship that continues to respond to the people it serves,” Kamberipa said.

The bank will provide financial expertise, service channels and dedicated business partners, with offerings that include savings and investments, personal, home and vehicle finance, insurance, financial advisory services and digital banking.

Kamberipa added that financial wellness coaching would help participants understand their financial position, manage debt and plan with greater confidence.

Moreover, ELCIN’s General Secretary Rev. Johannes Haufiku described the agreement as an important instrument for strengthening the church’s institutional capacity and supporting its spiritual, administrative, educational and social responsibilities.

However, Haufiku emphasised that the agreement’s value would depend on its implementation.

“The value of an agreement is not determined by its signing alone, but by how faithfully and effectively it is implemented,” he said.

However, Erastus, urges the institutions to establish a baseline of participants’ financial positions and track changes over 12 and 24 months, as it would allow them to assess whether households were increasing their savings, reducing their reliance on short-term borrowing and improving their cash-flow planning.

“I guess the ultimate measure would be to look for improvements in participants’ financial position and not just to look at workshop attendance and the opening of new bank accounts,” Erastus said.

Source: Business Pulse 360