Patience Makwele
Namdeb has signed an agreement that allows its employees to invest directly from their salaries.
The agreement was signed with Namitvest Investment Holdings (Namitvest) and the Mineworkers Union of Namibia (MUN) on Tuesday.
It introduces a payroll deduction system that allows workers to voluntarily invest part of their income into shares.
The scheme allows employees to invest through automatic deductions, making it easier to access investment products that often require higher capital and administrative steps.
MUN acting president Poco-Key Mberiuana said the agreement marks a shift from wage demands to long-term financial planning.
“For years we have fought for fair wages, but we must now go further. We must ensure our members are able to save, invest and build something that lasts beyond their working years,” Mberiuana said.
Mberiuana said financial education will be important for the success of the programme.
“We know our members are under pressure, but we cannot delay building a culture of saving and investing. This agreement removes obstacles and gives our members a dignified way to start.”
“This is more than an agreement. It is about giving workers a real chance to build wealth and secure a future for themselves and their families,” Mberiuana noted.
The model builds on Nammic Holdings, the union’s commercial arm established in 1997.
Through Namitvest, more than 2 600 shareholders have received dividends since 2024, with another payout expected in June.
Namitvest chairperson Mayemelo Kalumbu said the agreement aims to expand access to investment opportunities.
“For far too long, many workers have been excluded from opportunities to grow their wealth. This agreement creates a practical and disciplined way for workers to participate meaningfully in the economy,” Kalumbu said.
Some workers said they support the idea but face financial pressure.
“It is a good opportunity, but things are tough. After rent, food and transport, there is not always much left. People will want to invest, but it depends on what they can afford,” said a 46-year-old mineworker.
Another worker said contribution levels must remain flexible.
“If the deductions are too high, people will not join. It has to be something manageable,” he said.
Namdeb representative Riaan Burger said the company supports the initiative as part of employee wellbeing.
“Most people are focused on surviving today and struggle to plan for tomorrow. By enabling payroll-based investments, we are making it easier for our employees to take control of their financial future.”
Burger said cooperation between employers and workers is key.
“This is a shared vision. We want employees to not only earn a salary but also participate in long-term wealth creation,” he said.
Labour economist Precious Martinus said the success of the scheme will depend on affordability and participation.
“The concept is sound, but affordability is the critical constraint,” Martinus said.
“In an environment where a large portion of workers are already stretched by housing, transport and food costs, discretionary income is extremely limited. That means participation may initially be low or skewed toward higher-earning employees.”
“For the scheme to have meaningful economic impact, you would need sustained participation at scale, not just sign-ups, but consistent monthly contributions over time. Without that, it risks being more symbolic than transformative.”
Martinus said such programmes may not address deeper inequalities.
“Payroll-based investment schemes can help bridge the gap, but they are not a silver bullet for inequality. In practice, these models often benefit workers who are already relatively more financially stable within the workforce. There is a real risk that lower-income workers who arguably need wealth-building tools the most may be excluded simply because they cannot afford to participate. So while the initiative improves access in theory, the actual distribution of benefits may remain uneven,” she said.
Martinus said long-term success will depend on understanding and consistency.
“The biggest risks are financial literacy, market exposure and behavioural consistency. If workers do not fully understand what they are investing in, they may either opt out prematurely or have unrealistic expectations about returns. There is also the issue of concentration risk; if investments are heavily tied to a single sector or entity, workers’ income and investments become linked to the same economic cycle,” she added.
“Ultimately, the long-term success of the programme will depend on three things: education, flexibility in contribution levels, and transparent, consistent returns. Without those, participation will decline over time.”
The agreement takes effect immediately and participation is voluntary.
