The launch of the national Financial Literacy Initiative (FLI) coincided with the commemoration of the World Consumer Rights Day, the 15th of March un-der the theme “our money, our rights”. The Minister of Finance, Honourable Sara Kuugongelwa-Amadhila, launched the Initiative. During the launch, the Honourable Minister provided an insight into the importance of having a na-tional platform to address financial literacy in the country; her statement is summarised below for your information.
Significance of Financial Literacy Initiative
1. The Financial Literacy Initiative was formed against a background of low financial literacy and high financial exclusion in our population. It was
formed against a backdrop of difficult conditions for access to finance, especially for low-income earners and SMEs.
2. While recent findings suggest improvements in access indicators; the quality, diversity and affordability of product and service offerings, especially to low-income earners and SMEs remain a significant cause of concern. We will not be able to build a knowledge-based, competitive economy and prosperous society under these circumstances.
3. The Initiative seeks to address both the demand and supply-side barriers for accelerated financial inclusion of all our people. The prime objective of this initiative is to serve as a national platform for delivering finan-cial education to the population. The initiative envisions contributing to a narrowed economic divide and improved quality of life for all Namibians by enhancing financial inclusion and financial security through applica-tion of better knowledge and decision-making.
The Phase I of Financial Literacy Campaign and Campaign themes
1. The launch of FLI coincides with the launch of the first phase of consumer education campaign under the theme “Be Wise”. This is a premeditated theme and charged with a lot of connotative meaning.
The “Be Wise” campaign dwells on the nuts and bolts of budgeting, saving and spending as three sub-themes of the campaign message
It bespeaks of the following:
• A conduit for consolidated consumer education at national level, harness-ing public, private and development partner endeavours.
• A transmitting belt for financial knowledge and wisdom to make correct decisions regarding the use and management of their financial assets.
• Consumer empowerment, allowing consumers to hone their skills and become more assertive in their demand for relevant and appropriately priced financial products
• Engendering consumerism as consumers become increasingly articulate regarding the respect of their rights
• A catalyst for transformation and attainment of the development objec-tives encapsulated in the Financial Sector Strategy.
2. The “Be Wise” campaign dwells on the nuts and bolts of budgeting, sav-ing and spending as three sub-themes of the campaign message. Recent evidence from the 2011 FinScope Survey indicated that about 76 per-cent of adult Namibians have difficulty to make ends meet, while about 60 percent encounter difficulty to keep their financial commitments. The thematic choice of the campaign obtains from such findings and sets the basis for future campaign engagements.
3. The campaign toolkit harnesses a variety of media-mix as a distribution channel.
These comprise:
• Edutainment in the form of Street Theatre Plays
• Consumer education booklet, containing touchy and easy-to-understand tips and guides in English, Damara-Nama, Oshiwambo, Afrikaans and Otjiherero.
The Core Issues:
1. The distinguishing features of the Namibian financial landscape in rela-tion to financial inclusion are:
• A high level of financial exclusion and shallow access to services.
• High cost of financial products and services which generally rockets out of range for low-income earners
• High drop-out rates from financial access , especially from the insurance system which leaves the consumer at a net-loss.
• Low product innovation and limited solutions for low-income earners
2. The financial services industry has committed itself to supporting con-sumer education and enhancing consumer protection by mobilizing 0.2 percent of after-tax profits to support these objectives through the 2009 Financial Services Charter. There is a need to make progress on the im-plementation of the Financial Sector Charter commitments. It is expected that the industry will live up to its commitment in this regard.
3. On its part, Government pledges to sustain its support for this initiative. In particular, the Ministry of Finance will continue to host and provide support to the FLI Secretariat, especially during this critical inception phase.
4. This initiative and its programme of activities are intended to have a lasting legacy. This initiative is envisioned to impact positively on the quality of life of our people and contribute to a narrowed economic divide in our country. However, the intended impact of this initiative and its message compact will only have intended consequences, if both consumers and suppliers of financial products demonstrate behavioural change. Providing diversified, affordable and relevant products is a nec-essary precondition for a more inclusive financial sector.
5. The Hon. Minister called upon the public to assimilate and put to use the messages emanating from this programme. The public was further invited to follow this programme and contact the FLI at every instance, if they have queries and she (Hon. Minister)concluded with the follow-ing words “Natu landuleni nee, nokutula miilonga omauyelele nomayele ngono tatu pewa okuziilila moprogram ndjika – Let us assimilate and put to effective the message emanating from this programme.”
With the above remarks, the Honourable Minister officially launched the Financial Literacy Initiative.
