Namibians are Miserable

The Namibian - 7 March 2013

What does it mean to be miserable? The dictionary defines miserable as “causing extreme discomfort or unhappiness for example in a miserable situation”.  This past week Namibia was ranked as the 7^th most Miserable Country in the World. This rating is based upon the misery index, a crude economic measure created by Arthur Orkum, that sums up a country's unemployment and inflation rates to assess conditions on the ground (the higher the number, the more miserable a country is). The reasoning: most citizens understand the pain of a high jobless rate and the soaring price of goods.

Our Misery index score is 57, based upon our Consumer Price Inflation (CPI) of 5.8% per year and our unemployment rate of 51.2%. The findings further state that Namibia is “heavily dependent of the its mineral resources, Namibia exports a lot of diamonds, uranium, and gold. However, the mining sector employs only 3 per cent of the country's labour force. Since there isn't much else going on, almost half of Namibia's workers are without jobs. Income inequality is absurd here—even though the country boasts a high GDP per capita, Namibia has the highest GINI coefficients: 70.7%.”

When I first saw this article my national pride immediately made me rubbish the story. My reaction was, “how can westerners call us miserable?”. I also prepared all the arguments about statistics being flawed etc., before calming myself down.

I then resorted to understanding what the author was writing. Yes, it’s true that our consumer prices are increasing above our salary increases and yes, our unemployment is reaching alarming rates. This means to me that if I am working, I am able to afford less and less each year, and I must support my extended family who are not finding employment.  A miserable situation indeed.

This must be a wake-up call to Namibia. Whenever we lose rankings in competitiveness or business confidence, the NCCI and business person are quick to point out that they are finding it harder to make a profit and government must be careful. However, when the Misery Index is discussed, nobody discusses the issues creating our ranking, but rather point fingers at the way the index was created.

This index has focussed on where our misery stems from namely employment problems (too few jobs paying too little) and our consumer prices that are going higher and higher.

Please note, I wrote Namibians are Miserable – not “Namibia is a miserable place to stay”.

BTW: The Gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality (where everyone has the same income) and 1 corresponds with perfect inequality (where one person has all the income—and everyone else has zero income). Here Namibia tops the list at number 1 (in the world) with a GINI coefficient of 70.7 . We top the list of income inequality and that is a fact we cannot argue against.

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A few weeks ago I wrote about price labelling and the need to have prices shown on the shelf that are measured in understandable units such as litres and kilograms. During the past week I was fortunate to travel around the country taking tourists to places such as Swakopmund, Walvis Bay and Okahandja. While visiting the towns I took the opportunity to visit the most common shopping places. I noticed with some joy that there are a few shops who already label their products for the convenience of the consumer. I must commend Shoprite on having almost all their products labelled with the unit price clearly indicated, while Pick & Pay has around half of their products labelled – it is perhaps just laziness at the IT department to fill in all the fields correctly in their central system as the labels already have place to indicate the unit price?

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When I receive exceptional service I must share it with you the reader. Last week I had to purchase baby milk formula no. 2 and there was none available in Usakos or Karibib. When I inquired at the OK in Karibib, the owner came to assist me. Upon finding there was none of the no. 2, he offered that I take the no. 3 formula and return it (even if we used a little bit over the weekend) for the right formula on Monday when the order was to be delivered. Thank you. I appreciate your efforts.

Hage Geingob must keep his promises

The Namibian - 28 Feb 2013

It is not the minerals of Namibia on the south west coast of Africa that makes the country special. No. It is the tolerance of its people. After more than a century of colonial rule and racial segregation it is a role model of cultural assimilation while maintaining multiculturalism. This interculturalism appreciates the qualities of our various cultures, within a framework of universal human rights. The intercultural social contract practised in Namibia expects us to give authority to not only political and civil rights, but also to give a legal framework for the economic, social and cultural rights of all our people.

To paraphrase Julius Nyerere, we have to “face the basic fact that human values can only be measured in regard to individual human beings. The Government is properly instituted among men not to secure the material or cultural advantages of a few, but to promote the rights and welfare of the many.”

Three years ago, on 15 March 2010 (World Consumer Day), the then Minister of Trade and Industry, Honourable Hage Geingob, promised in a speech read on his behalf that a Consumer Protection Act will be submitted to Parliament within one year. Since then Dr. Geingob has moved on to become the Right Honourable Prime Minister and is poised to become our next President in 2015. With Consumer Day again being celebrated on 15 March this year, there is however still no sign of the promised Consumer Protection Act (CPA).

This year, the theme of World Consumer Day is “Consumer Justice Now”. As Namibians we must push for our legislature to put in place a CPA as soon as possible as good consumer protection is not only about legislation, but it can also deliver justice, create a fairer society and even save lives. The United Nations Guidelines for Consumer Protection (UNGCP) act as an international reference point of the consumer movement and can be understood to be

·         the right to the satisfaction of basic needs

·         the right to safety

·         the right to be informed

·         the right to choose

·         the right to be heard

·         the right to redress

·         the right to consumer education

·         the right to a healthy environment.

I have made a short list of the main issues I believe should be included in the Consumer Protection legislation:

1. Consumers have the right to cancel a reservation or pre-booking for any goods or services and to cancel any order for any goods or services.
2. Consumers may cancel a fixed-term agreement (of any term) at any time.
3. Suppliers must provide a quote or estimate prior to working on any goods.
4. The rendering of services or the goods required to perform any service must be in a manner and of a quality that persons are generally entitled to expect and be free of any defect.
5. The CPA must impose strict liability on producers, importers, distributors or retailers to supply safe goods and imposes strict liability in respect of product failure, defective and hazardous goods.
6. A mandatory three-month warranty period must be imposed on service providers who install any new or reconditioned part during repair or maintenance work.
7. A consumer is entitled to return unsafe or defective goods, including goods that are not of a good quality.
8. A consumer who is the recipient of unsolicited goods or services is not obliged to pay for such goods or services
9. Consumer must have the right to cancel a transaction or agreement emanating from Direct Marketing.
10. Goods or services must not be promoted in a misleading, fraudulent or deceptive manner.
11. The CPA should also create a “Small Claims Court” for matter under N$ 50,000.00.
12. Lastly, and most importantly, the legislation should create and support national consumer organisations to promote and provide consumer literacy education.

These are issues that have been talked about with the Ministry of Trade and Industry officials and various national forums, but no concrete action has taken place. I hope the Right Honourable Dr Geingob will hear my plea and keep his promise to get our consumer legislation submitted to Parliament as soon as possible.

Understanding Banking

First printed in Consumer News Namibia magazine - Feb 2013 edition

Let me start by repeating the words of a friend who is a banker in Windhoek, “banking is the profession with one of the best marketing departments around. Imagine trying to convince the first customer that their money was safer with the bank than in their own hands, and best of all, which the customer would need to pay fees to deposit and withdraw their own money.”

Even now during the financial crises throughout the world banks are still succeeding in motivating clients to give them their money. Today, most of us feel safe with our money in banks because “we are many and government will not let it fail”. The term “moral hazard” is used to explain why we take these risks.

All over the world people often complain about banks. This ranges from bank fees, interest charged, to repossession of vehicles and homes.

In Namibia this is no different. The late Hon. Reinhard (Kalla) Gertze, Member of Parliament, proposed an investigation into the financial institutions through public hearings of the Parliamentary Committee on Economics, Natural Resources and Public Administration. They held public hearings on bank charges and regulations in 2006 in Windhoek. One of the submissions outlined why interest is charged.

Why is interest charged?

In the beginning of banking, interest was used to offset the risk of providing the credit to the borrower. There are four risks (hazards):

• The costs incurred by the bank while providing the loan had to be repaid;
• Inflation means the lender will be able to buy less for the money as time passes;
• Scarcity – in other words once it is lent to a borrower at a specific rate, it cannot be used for another loan;
• That the borrower cannot pay back the loan

Of these four, the only real difference the government can make is in reducing the risk of borrower’s inability to repay.

Being a client of a bank

Banks and their branch network is a convenience. We can put our own money into an account, send money to someone else, and apply for a loan. As consumers, we realise that we need the services of a bank to increase our money. In other words, we need someone else’s money to pay for things like a car or a house, or even start a business.

But there is probably nothing as frustrating waiting in a queue at a bank “waiting for own money”, or dealing with an employee who is rude to us when we need to ask a question. If you are a client of a bank you have five basic rights, as well as five responsibilities.  These should be seen as an agreement between the banks and the Namibian consumer on how we treat one another.

1.                  You have the right to be treated with respect and dignity.

This means every employee of the bank should treat you with dignity and be respectful of your cultural and gender. This also means they may not be abusive when collecting overdue monies.

2.                  You have the right to decide which services or products you want to use.

You need enough information on the banks products to be able to choose the right one for your needs. This means the bank employee may not pressure you into a choosing a product you do not want.

3.                  You have the right to receive clear, truthful and complete information – as well as the time needed to make your decision

The bank must give complete information and answers to all your questions so you can fully understand the terms and conditions of the services and products you choose. The staff member serving you must give enough of their time to ensure you understand the relevant information about the product. This should include information such as total cost of borrowing, cost of transactions, penalty fees (if any), and possible alternatives that might benefit you.

4.                  You have the right to be heard

You are allowed to complain. When a service does not meet your needs, or any of your rights have been violated, you have the right to inform the bank immediately. The bank should have a customer hotline that will allow you to provide them with feedback – and they will benefit from being able to deal with the problem as early as possible.

5.                  You have the right to privacy

Your personal information must be kept confidential between you and the bank employees dealing with your account. No one is allowed to disclose your personal information without your permission.

Have some manners, please

The Namibian 21 Feb 2013

Last year I dislocated my knee while visiting in Windhoek. It happened while I was crossing the street on a Monday afternoon. This was an old sport injury from my days of ice-skating, rollerblading and probably further irritated by my recent bungee jumping. Thus it is something that I can only blame on my carefree younger days without heeding the safety advice of my elders.

A friend was with me at the time and called the emergency number of the cellular network and we were quickly and efficiently helped to get in contact with the hospital services. Within half an hour the ambulance was there and I was transported to the Katutura State Hospital. Having heard so many scare stories about the cleanliness - and lack of service – I was rather worried about actually getting sick at the hospital.

However, I must loudly declare my fears were largely unfounded. Of course the hygiene in the emergency room was rather scary – especially for those of us who never land in such situations – but the service was exceptional. I was helped within a reasonable period of time and was given very good service by the doctor on duty. The trip to the Windhoek Hospital for the X-rays was a little bit crowded, but nevertheless I received the necessary treatment and examination.

The operation was the next day (as it was surgery day) and all went well. I stayed for two weeks and received good, healthy meals and pain medication almost every time I asked. The nurses were friendly and attentive and I never felt neglected though I stayed in a public ward that had extra beds in the corridor area.

When I was discharged, I received an account of only N$ 30.00. Wow. Reasonable service, good price.

I must add to the story that my step mother was a Staff Sister for many years at the hospital, and, on the last day of my stay, Andimba ya Toivo visited my hospital bed. This however was not known upon my arrival or during the initial part of my stay.

As a consumer we often complain about good service but rarely compliment the good service when we get it. From the time of the operation, the nurses made it a habit to stop at my bed and ask about my recovery. When I left and thanked them for the good service and for being patient with me – after all I am just as much a baby as any man when he is sick.

The nurses then told me something that made me think. They said it was a pleasure to have a patient like me. They had been overwhelmed that from the first day I had greeted them every morning and every night and gotten to learn their names. In addition, I had assisted one or two of them with personal problems (housing applications) and even helped one of the Sisters with her homework.

The nurses told me that when they found out my step-mother had been a nurse it had no additional effect in how they treated me. They had come to enjoy being told “please” when I wanted something and “thank you” every time they gave me something or even when they just made my bed. They also noticed how I had made friends with all my ward colleagues and shared my drinks and presents with those who were far from home. As one nurse told me, “It is a pleasure to help someone who appreciates what you do for them.”

It is their work to help us, but do we really appreciate the long years of study and patience it takes to deal with all our impatience and the stress we take out on them because they are “beneath us”?

All it takes is a little bit of good manners from each of us to make this a better place to live in. Next time someone gives you something, remember to say thank you. It is a habit that can only make your life better too.

BTW – that is the story how I lost my front teeth while fallinand why I now look like a Cape Coloured. LOL.

Show me the money

The Namibian 14 Feb 2013

Millions of dollars are laying unclaimed with banks, pension funds and insurance companies. I have been informed that these companies believe it is the responsibility of the deceased to have informed the relatives of the policy of other benefit that the relatives are to receive. In turn, they insist, it is the responsibility of the beneficiary to claim their monies. Nonsense, I say! The company has been entrusted with a duty which must be kept.

In last week’s column I discussed the opportunities to be had by entrepreneurs in the assistance of customers. Many people are not aware of their rights and thus lose out on possible savings on products and services. An even further disturbing business practice is the non-payment of death benefits. After all, (a business might argue), the person has passed away and would not be aware if their loved ones had received the money they had worked so hard to put aside. Each and every person in Namibia has the right to find out if they have been left an inheritance, whether it is property, money or even a prized possession. Most of us presume that such matters will be taken care of after our deaths – but very few actually make sure there is enough information about our financial dealings so that our relatives or executors can make these divisions according to our wishes.

A typical example came to light recently when a friend of mine had a death in the family. The deceased was a pensioner and had received their pension money less than a week before the passing. My friend was given the responsibility of managing the financial costs of the funeral and decided to use the account of the deceased to finalise matters. Now, unfortunately, one of the other relatives had access to the bank card and had withdrawn the last monies left from the pension – and even left a negative balance. Upon enquiry, my friend was requested to provide a death certificate and proof of being the executor before he could access the particulars of when and where the money was withdrawn. The “missing” money was less than N$ 300.00 and my friend wondered if it really was worth the effort. Nonetheless, he provided the paperwork to the bank and was given the bank statement.

And this is where we come to an interesting discovery. One of the bank employees asked my friend why he had not requested for the death benefit of the account to be paid out. The employee explained that all bank accounts carried life insurance - and they charged it as part of bank fees on the account. Upon enquiry it turns out that all accounts with the bank had an automatic death benefit of N$ 2,500.00. When I heard the story I was amazed, as I am not even sure if my bank provides the same service. Or whether I am paying for this service and am not aware of it?

This brings another business opportunity to light. “Inheritance Tracing”. Not many of us have the financial knowledge, or even the time to check whether there is money not being paid out which rightfully belongs to us. Thus an inheritance tracing agent can assist consumers with checking with all financial institutions such as banks, insurance companies, etc as well as with the appropriate authorities (for example the Master of the High Court). In addition to tracing, there is also an opportunity to provide consumer education on matters pertaining to their last wishes. We might not like to think about our deaths, but we must do our utmost to ensure we do not bring more misery to our relatives through our passing.

If you have a bank account, funeral policy, shares or other financial instruments, make sure they are all listed with a person who you can trust. This can either be a financial advisor (insurance broker, etc.) or speak to your bank about their services in case of your death.