In Namibia, consumers are struggling with high prices and inflation, according to the latest data from the Namibia Statistics Agency. In October, inflation rose 6 percent, driven by increases in the prices of food, beverages, tobacco, transport, housing, and water and electricity.
Tomas David, a resident of Windhoek, expressed concerns about the rising cost of living, saying that the same amount of money he spent in January could only afford half the items in October. He described the situation as “economic anxiety.”
Rising production costs are also affecting entrepreneurs, with one business owner, Justy Shilunga, facing challenges in sustaining her operations due to price hikes. She highlighted the difficulties in maintaining profits while keeping prices affordable for customers.
Potato prices have tripled in Namibia due to high demand and slow supply from neighboring South Africa, resulting in uncertainty for businesses that rely on the commodity. Auguste Fabian of the Namibian Agronomic Board explained that local farmers only produce 30 percent of the country’s potato consumption, leading to a significant supply-demand imbalance.
The impact of rising prices is also felt by retailers, such as Lovisa Lipitua, a supervisor at the Stampriet Market, who noted a drop in potato sales compared to the previous year.
Tomas David also emphasized the negative effect of high prices on mental health, stating that he often battles depression due to financial stress.
To cope with the challenging market conditions, consumers are adopting financial strategies such as only purchasing essentials, revising budgets, and seeking additional income opportunities.
