52% of Namibians Cut Back on Non-Essential Spending as Living Costs Rise
By: Anton Wokie Mbinge
More than half of Namibian consumers have cut back on non-essential spending as rising living costs and borrowing expenses continue to put pressure on household finances.
The finding comes from the TransUnion`s second quarter of 2026 Consumer Pulse Study, which surveyed 258 adults in Namibia during April and May 2026 in partnership with research provider Dynata.
According to the study, 52% of respondents said they had reduced discretionary spending over the previous three months, including spending on items such as eating out, travel and entertainment.
The cutback in non-essential spending comes as households adopt more cautious financial habits, with some consumers also using the pressure to improve their financial position.
About 32% said they were paying down debt faster, while 24% had increased the amount they were putting into emergency savings, suggesting that some households are prioritising financial resilience over immediate consumption.
TransUnion Namibia Chief Executive Officer, Lara Enslin said consumers were becoming more deliberate about how they manage their finances amid uncertainty.
“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,” Enslin said.
However, the study shows that financial conditions remain mixed across households. While 43% of respondents said their financial situation was better than expected at this point in 2026, 45% said it was worse than anticipated.
Income trends were similarly divided. Twenty-eight percent reported an increase in income over the previous three months, while 39% said their income had remained unchanged and 33% reported a decline.
The study revealed that, despite these pressures, consumers remain relatively optimistic about the year ahead. Seventy-three percent expect their income to increase over the next 12 months, while 71% are optimistic about their household finances.
According to the study, credit access, however, remains a concern. Although 89% of respondents said access to credit and lending products is important to achieving their financial goals, only 36% felt they had sufficient access to credit, compared with 46% who said they did not.
Younger consumers are also showing caution around borrowing. The study found that 46% of Millennials planned to apply for new credit or refinance existing credit within the next year, compared with 30% of Gen Z respondents. The proportion of Gen Z consumers planning to seek new or refinanced credit was also 15 percentage points lower than a year earlier.
Meanwhile, digital fraud is adding another layer of financial risk. Sixty-five percent of respondents said they had been targeted by fraud through email, online platforms, phone calls or text messages during the previous three months, while 10% said they had fallen victim.
