Empowering Namibia’s Side-Hustle Economy: How Letshego Fuels Entrepreneurial Dreams

In the heart of Namibia's dynamic socio-economic landscape lies a thriving entrepreneurial spirit, driving change, and resilience across communities. Letshego Micro Financial Services Namibia has been at the forefront of this movement, empowering Namibians to transform dreams into sustainable businesses. By embracing financial inclusion, aligning with national priorities, and leveraging productive lending to advance the UN Sustainable Development Goals (SDGs), Letshego is redefining the possibilities of economic empowerment.

Socio-Economic Outlook

Namibia’s economy, characterised by a growing urban population and expanding entrepreneurial activity, is transforming challenges into opportunities. The 2023 NSA Census highlights that 50% of the population now resides in urban areas, providing fertile ground for innovation and market access. However, rural areas continue to contribute significantly to the economy, with regions like Kavango West leading in agricultural and renewable energy projects.

High unemployment, particularly among youth, remains a pressing concern. Yet, it has spurred the growth of the side-hustle economy, where individuals create secondary income streams through micro-enterprises. This vibrant entrepreneurial culture underscores the critical role of financial inclusion in unlocking the nation’s potential.

The Youth Demographic: Namibia’s Economic Engine

With 34% of Namibia’s population aged between 15 and 34, the youth demographic is a powerful driver of economic activity. This group brings creativity, innovation, and adaptability, vital traits for the side-hustle economy. Letshego recognises this potential and provides tailored financial solutions to support young entrepreneurs in education, agriculture, and small business development.

For instance, in Ohangwena, where 68% of loans are productive, the youth, employed or not, are mostly engaged in what one would call “side-hustle” such as farming, back yard plant nurseries, owing vehicle for hire such as taxis and delivery services, livestock farming and importation of products and machinery. The youths are leveraging financing to expand operations and embrace modern farming techniques. In urban hubs like Khomas, productive loans empower youth to invest in education and health, building a skilled and healthy workforce.

The Impact of Productive Lending on SDGs

Productive lending forms the cornerstone of Letshego’s approach, with 53% of loans disbursed since September 2023 allocated to transformative activities. These loans align closely with key SDGs, including:

SDG 1: No Poverty: By financing micro-enterprises and sustainable housing projects, Letshego directly addresses poverty alleviation.

SDG 4: Quality Education: Educational loans help Namibians pursue higher education, contributing to a skilled labour force. With tertiary education attainment at 11.8%, these investments are pivotal for long-term growth.

SDG 7: Affordable and Clean Energy: Renewable energy projects, particularly in Kavango West, exemplify how productive loans drive sustainable practices.

SDG 5: Gender Equality: Gender parity in productive lending (53% for both men and women) ensures equal opportunities for economic participation.

Through regional outreach, Letshego has transformed lives in regions like Kavango East (66% productive loans) and Kunene (62%), fostering inclusive growth and development.

Productive Loans Disbursed Per Region

Financial Inclusion: Bridging Gaps and Creating Opportunities

Financial inclusion is central to Letshego’s mission. The institution addresses barriers to access, particularly among underserved groups such as rural communities and low-income earners. For example:

• Among ultra-low-income earners (<NAD 7,500), 54% of loans are productive, displaying their aspirations for long-term investments despite limited resources.

• In rural regions like Omaheke, where only 23% of loans are productive, Letshego is introducing financial literacy programs to enhance understanding and uptake of productive financing.

Productive Lending Per Income Backet

Digital solutions also play a critical role in advancing inclusion. Letshego’s technology-driven platforms simplify loan applications and ensure rural entrepreneurs can access capital without geographical constraints.

Aligning with Namibia’s Growth Priorities

Letshego’s initiatives align with national goals, addressing key challenges outlined in the NSA Census:

• Housing and Infrastructure: Home improvement loans address a critical gap, as 40% of households lack proper sanitation.

• Digital Literacy and Connectivity: With internet access at 28.3%, Letshego’s focus on digital financial tools bridges the divide, enabling broader participation in the economy.

• Agriculture and Rural Development: In regions like Kavango West, productive loans fuel agricultural growth, contributing to food security and sustainable livelihoods.

Success Stories: Transforming Lives Through Financing Your Side-Hustle

Stories of transformation underline Letshego’s impact:

• A farmer in Kavango West used a productive loan to expand their operations, integrating solar technology to improve irrigation and boost yields.

• In Ohangwena, a single mother secured funding to expand her traditional wear tailoring business, providing for her family while creating employment for her community.

• In Khomas, a young recent graduate who is now a teacher has funded his side hustle with a Letshego loan to procure a taxi that he uses and additional passive income, in the same vein created an employment opportunity for a driver.

These individual successes reflect Letshego’s broader mission to create lasting socio-economic change.

Outlook: Scaling Impact

Looking ahead, Letshego is committed to deepening its involvement in Namibia’s economic development. Key initiatives include:

• Expanding Digital Solutions: Enhancing financial literacy and access through mobile platforms to bridge the rural-urban divide.

• Sustainability Focus: Scaling investments in renewable energy and sustainable housing to align with Namibia’s green agenda.

• Partnerships for Progress: Collaborating with government and private stakeholders to amplify the impact of financial inclusion initiatives.

As Namibia’s side-hustle economy continues to evolve, Letshego stands ready to support its growth, fostering resilience and innovation across the nation.

Letshego: Empowering Dreams, Enabling Growth

By aligning its strategies with the SDGs and Namibia’s national priorities, Letshego is more than a financial institution—it is a catalyst for change. Through productive lending, inclusive finance, and community engagement, Letshego fuels entrepreneurial dreams and builds a brighter future for all Namibians.

Together, we are shaping the economy of tomorrow, one loan at a time.