Navigating the Debt Maze: How Namibia's Consumer Law Can Offer a Lifeline

The 'In Duplum' Rule and the Fight Against Endless Debt

In an increasingly complex financial world, many individuals find themselves caught in a relentless cycle of debt, often exacerbated by mounting interest charges. For consumers in Namibia, understanding their rights and the legal frameworks designed to protect them is paramount. This blog post delves into a crucial legal principle, the 'in duplum' rule, and explores how robust consumer law can serve as a vital safeguard against predatory lending practices and the spiral of perpetual indebtedness.

Understanding the In Duplum Rule: A Shield Against Excessive Interest

The term "in duplum" is a Latin phrase meaning "in double," and its origins can be traced back to Roman Dutch law. At its core, the in duplum rule dictates that interest on a debt ceases to accrue once the total amount of unpaid interest equals the outstanding capital amount. This principle serves as a critical mechanism to prevent interest from accumulating indefinitely, thereby protecting debtors from an insurmountable burden of debt.

Historically, it has been considered both illegal and immoral to charge interest that exceeds the original principal amount owed. However, as the initial basis highlighted, this common law rule often faced uncertainty in its application, particularly in court proceedings. Creditors, including banks, lawyers, and debt collectors, sometimes exploited this ambiguity, leading to situations where additional charges like legal fees, tracing fees, and administrative costs could inflate the debt far beyond the original amount, effectively circumventing the spirit of the in duplum rule.

In South Africa, the in duplum rule has been codified into statute, providing clearer guidelines and stronger protection for consumers against exorbitant interest rates. This statutory enactment has brought much-needed clarity and certainty to its application, ensuring that consumers are better shielded from predatory practices.

The In Duplum Rule in Namibia: A Call for Codification

While the in duplum rule has its roots in common law and is recognized in Namibia, its application has historically been subject to the same uncertainties faced in other common law jurisdictions. The lack of a clear statutory framework in Namibia, similar to that in South Africa, means that the interpretation and enforcement of this crucial principle can vary. This ambiguity leaves consumers vulnerable to situations where their debt can still escalate significantly due to various charges that fall outside the strict definition of 'interest' but effectively double or even triple the original capital owed.

The need for legal clarity and explicit statutory protection for consumers in Namibia is evident. Without it, the principle of in duplum, while morally and legally sound in theory, may not provide the comprehensive safeguard that indebted individuals desperately need. The original article emphasised that the Consumer Law in Namibia *can* do a lot, but the reality is that without codification, its effectiveness in preventing the 'endless circle of debt and poverty' remains limited. 

Namibian Consumer Protection: Historical Context and Current Frameworks

Before Namibia's independence in 1990, the legal landscape, including consumer protection, was largely governed by South African laws. Key legislation that applied during this period included the "Credit Agreements Act (75 of 1980)" and the "Usury Act", which provided some level of protection against exploitative lending practices and excessive interest rates. These acts, inherited from the pre-independence era, formed the foundational elements of consumer protection in the territory.

Post-independence, Namibia has developed its own set of laws and regulations aimed at ensuring fair and transparent business practices. While there isn't a single, comprehensive consumer protection act that consolidates all aspects, the current framework is a mosaic of various pieces of legislation. It's important to note that the Consumer Protection Act (No. 68 of 2003), often referenced in discussions about consumer rights in the region, is a South African law and not directly applicable in Namibia.

Instead, Namibia's consumer protection landscape includes:

• Competition Act (2003): This Act promotes and maintains competition by regulating anti-competitive practices, ensuring consumers benefit from diverse goods and services at competitive prices.
• Sale of Goods Act (1990): This legislation governs the sale of goods and services, outlining consumer rights regarding product quality, delivery, and payment terms. 
• Consumer Protection Regulations (2011): These regulations complement existing consumer protection efforts, offering detailed rules on consumer dispute resolution, labeling, and product safety standards.
• Consumer Protection Policy(2020): Namibia is in the process of developing a comprehensive Consumer Protection Act to safeguard consumer rights and promote fair business practices

Consumers in Namibia are afforded several fundamental rights, including the right to accurate information, safety, redress, fair treatment, choice, and privacy. Businesses are mandated to provide clear and truthful information, ensure product quality and safety, honor warranties, and maintain transparent pricing. Existing consumer protection efforts also extend to e-commerce transactions, including provisions for cooling-off periods and data privacy. 

Despite these existing frameworks, a significant gap remains: the absence of a single, comprehensive consumer protection law that consolidates and clarifies all aspects of consumer rights and protections. As noted in various discussions, Namibia currently relies on a principles-based approach, which, while allowing for flexibility, can lead to fragmentation and uncertainty in application. This fragmented approach means that while certain aspects of consumer protection are covered, the overarching legal clarity and unified enforcement mechanism that a codified in duplum rule would bring is still lacking. 

The Imperative for Stronger Consumer Protection: Codifying In Duplum

The original article, published in 2012, presciently highlighted the urgent need for legal protection for consumers in Namibia, stating that "the Consumer law is a necessity not a nicety!" This sentiment remains profoundly relevant today. While Namibia has various laws aimed at safeguarding consumer interests, the absence of a statutory in duplum rule leaves a critical vulnerability in the fight against excessive debt. 

The experience of South Africa, where the in duplum rule has been codified, serves as a compelling example of how statutory clarity can empower consumers and curb predatory practices. Such codification provides a definitive legal basis, reducing ambiguity and ensuring consistent application by courts and creditors alike. It would prevent the "inflation" of debt through various charges that currently circumvent the common law rule, offering a true shield against the endless accumulation of interest and other fees. 

Stronger consumer protection, particularly through the codification of the in duplum rule, would:

• Provide Legal Certainty: Eliminate the ambiguities of the common law rule, offering clear guidelines for both debtors and creditors.
• Protect Vulnerable Consumers: Safeguard individuals from falling deeper into debt due to unchecked interest accumulation and ancillary charges.
• Promote Fair Lending Practices: Encourage responsible lending by limiting the potential for creditors to profit excessively from a debtor's inability to pay.
• Reduce Litigation: With clearer rules, there would be less room for disputes, potentially leading to fewer court cases related to excessive interest.

Ultimately, codifying the in duplum rule is not merely a technical legal adjustment; it is a fundamental step towards fostering a more equitable financial environment in Namibia. It would transform a common law principle with uncertain application into a robust statutory right, truly empowering consumers and fulfilling the promise of comprehensive consumer protection. 

Conclusion: A Necessity, Not a Nicety

The journey to financial stability for many Namibians is fraught with challenges, not least of which is the burden of debt. The in duplum rule, with its historical roots and protective intent, offers a powerful concept to mitigate the relentless accumulation of interest. However, for this principle to truly serve as a bulwark against the "endless circle of debt and poverty," it must be enshrined in clear, unambiguous legislation.

Namibia has made strides in consumer protection, but the time has come to solidify these protections with a statutory in duplum rule. This is not a mere nicety for legal purists; it is a fundamental necessity for the economic well-being and dignity of its citizens. By adopting a codified in duplum rule, Namibia can ensure that its consumer law truly empowers individuals, prevents exploitation, and fosters a financial landscape where debt does not become a life sentence.

It is imperative for policymakers, legal professionals, and consumer advocates to champion this cause, working collaboratively to enact legislation that provides the clarity and protection Namibian consumers deserve. Only then can the promise of a fair and just financial system be fully realised.

Creating an Information Bank for Namibian Consumers: A Vision from 1993 to Today

Since Namibia gained Independence in 1990, one of my personal missions has been to contribute to nation-building through data. As a student of computer science and statistics, I began developing a central register of information in 1993—what I now refer to as an Information Bank for Namibian consumers.

The idea was simple: make use of public data sources—such as electoral rolls, land registers, and other publicly available records—to build a comprehensive register that could assist in economic modelling and decision-making. Over time, this effort has grown into a personal data register with over 3 million records, representing more than half the country’s population.

Collaboration with Global Partners

In 1999, I began collaborating with Creditreform Düsseldorf Frormann KG in Germany. Together, we crafted a proposal for an integrated central register of both personal and business data. The goal was to support both government and the financial sector in delivering better, more targeted services.

Our primary focus during that time was on compiling a business register, which now includes more than 11,000 Namibian businesses. We’ve engaged with several government officials over the years to showcase the benefits of such a system—ranging from improved service delivery to better economic forecasting. However, despite ongoing conversations, implementation has been hampered by a limited understanding of the technology and its potential.

Personal Data as a National Asset

More recently, the World Economic Forum (WEF) has introduced a compelling concept: personal data as a new asset class. In their 2011 report “Rethinking Personal Data: Strengthening Trust”, the WEF outlines four major action points to develop a trusted global personal data ecosystem:

1. Engage in Dialogue

   A robust, structured conversation is needed—one that includes individuals not just as data subjects but also as creators. The focus should be on transparency, accountability, and securing trust.

2. Agree on Shared Principles

   With the slogan “think globally, act locally”, the WEF encourages the development of guiding principles that can adapt to different regulatory and cultural contexts.

3. Create New Governance Models

   Effective data ecosystems require participation from all sectors—government, private institutions, and civil society—to co-create enforcement mechanisms and frameworks for trust.

4. Establish Living Labs

   These are safe, scalable environments to test policies, technologies, and business models in real-time. They allow countries to learn and adapt quickly in a data-driven world.

A Call to Collaborate: Making Namibia a Living Lab

Namibia is uniquely positioned to become a “living lab” for personal data. We are a small but connected society, and the groundwork of data collection has already been laid. What is needed now is a collaborative effort to bring together researchers, developers, civil society, and government to build something transformative.

I invite any research institution, NGO, or data-focused initiative to partner with me in testing new models of data governance, accountability, and service delivery—right here in Namibia. The Information Bank I have developed is not only a digital archive; it is a foundation for the future.

As we rethink how we manage and use personal and business data, Namibia has a chance to lead—not by having the biggest system, but by creating the smartest and most trusted one.

Can Entrepreneurship Be Taught? Rethinking How We Nurture Innovators

For decades, entrepreneurship has been viewed through a romantic lens—one that celebrates lone geniuses, risk-takers, and rule-breakers who build empires out of thin air. This perception has given rise to a myth: that entrepreneurship is a rare, inborn talent that can’t be taught. But as the global economy shifts and innovation becomes a necessity rather than a luxury, we must challenge this idea.

It Starts with a Definition

To answer the question of whether entrepreneurship can be taught, we must first redefine what it means to be an entrepreneur. Entrepreneurship is not simply about starting a business or owning a company. According to management thinker Peter Drucker, entrepreneurship is “not magic, not mysterious, and it has nothing to do with genes. It is a discipline—and like any discipline, it can be learned.”

Entrepreneurship is about identifying opportunities, applying creative solutions, and building value—whether in the private, public, or social sectors. This mindset can be taught, nurtured, and embedded in individuals from a young age.

Education as a Catalyst

Around the world, forward-thinking education systems are integrating entrepreneurship into mainstream learning—not as a standalone subject, but as a way of thinking.

Best practice example: Finland

In Finland, entrepreneurship education starts early. Schools encourage project-based learning, teamwork, problem-solving, and student-led initiatives. Entrepreneurship is embedded across subjects, helping students develop a sense of initiative and responsibility.

What we can do locally:

• Teachers should develop cross-disciplinary approaches that promote critical thinking, creativity, and collaboration.

• Curriculum designers must focus on instilling entrepreneurial attitudes—curiosity, resilience, adaptability—not just business skills.

• Entrepreneurship should be embedded in school life: through competitions, idea fairs, student-run enterprises, and exposure to role models.

These methods help students see entrepreneurship not as a career path for a chosen few, but as a mindset for navigating life.

Families and Communities Have a Role Too

Parents and communities can spark curiosity and innovation by encouraging children to explore, create, and experiment. Whether it’s starting a garden project, a small side hustle, or managing a household budget, every activity that encourages responsibility and innovation lays the foundation for future entrepreneurial thinking.

The Role of Government: Enabling, Not Controlling

Government policy can make or break a country’s entrepreneurial ecosystem.

Best practice example: Singapore

Singapore has developed one of the most entrepreneur-friendly environments in the world by combining robust education reforms with strong public-private partnerships. Government incentives include start-up grants, innovation hubs, simplified business registration, and bankruptcy laws that encourage risk-taking without lifelong penalties.

What we can do locally:

• Reform bankruptcy laws to remove the stigma of failure.

• Provide tax breaks and incentives for start-ups and early-stage investors.

• Celebrate entrepreneurs as national assets—not just when they succeed, but for taking the initiative in the first place.

Unlocking the 15%

Globally, it’s believed that around 20% of any given population has entrepreneurial potential. Yet in many developing countries, including Namibia and South Africa, the actual entrepreneurship rate hovers far lower—around 5%. That means we’re missing out on a huge pool of potential.

This deficit isn’t due to a lack of talent. It stems from a lack of exposure, support, and belief. Our job—whether as educators, policymakers, or community members—is not necessarily to “teach entrepreneurship” to everyone, but to create the conditions where it can emerge. We must help individuals recognise their potential and give them the tools to act on it.

Not Everyone Needs to Be an Entrepreneur—But Everyone Needs Entrepreneurial Skills

Title: Labour Hire in Namibia – A Necessary Evil or Just Exploitation?

In recent years, the debate over labour hire in Namibia has intensified. Some see it as a tool for job creation and business flexibility. Others, especially workers themselves, experience it as a form of modern-day exploitation. So, what is the truth behind labour hire—and what can we, as Namibians, do about it?

The Global Labour Hire Debate

Around the world, labour hire (or labour brokering) is big business. It allows companies to get workers quickly and without the long-term commitments of permanent employment. Labour hire agencies handle the HR paperwork, and the workers go straight to the job site.

Sounds simple, right?

But dig deeper, and the problems become clear. Labour hire workers are often paid less than their permanently employed colleagues—even when they do the exact same work. They usually miss out on pensions, paid leave, and workplace protections. In some countries, like Australia and parts of Europe, laws have been passed to ensure equal pay and rights for labour hire workers. In others, like Namibia, enforcement is still a major issue.

Namibia: History Repeating?

Labour hire in Namibia brings back painful memories of the apartheid-era contract labour system. Workers were shipped off from their homes, paid little, and stripped of their dignity.

In 2007, the Namibian government tried to ban labour hire outright. But in 2009, the Supreme Court struck it down, saying the law was too broad. A new amendment in 2012 gave some protection: labour hire workers must be treated the same as direct employees. But in practice, this is not always happening.

Namibian newspapers, social media, and even union reports are full of horror stories: no sick leave, no pension, no medical aid. A young man working through an agency in a supermarket earns half of what his permanent colleague does—just because he’s hired through a third party. Where’s the justice in that?

What Needs to Change

Labour hire isn’t going away. But we can make it better:

• Enforce the laws already in place.

• Ensure labour hire workers get equal pay, benefits, and protection.

• Hold recruitment agencies accountable.

• Give workers a voice through unions and proper workplace representation.

• And most importantly, grow our economy to create real, permanent jobs.

Final Thoughts

Namibia is a country of resilience and hope. We cannot let our people suffer in silence, working jobs that pay too little and protect even less. Labour hire should not be a trap. It should be a stepping stone—a temporary arrangement on the way to something better.

If we stand together, speak up, and push for reform, we can make the labour system work for the people, not against them.

The Enduring Argument for Rent Control in Namibia: An Updated Perspective (2025)

The escalating rental prices in Namibia, particularly in Windhoek, remain a critical concern, much as they were over a decade ago when The Namibian newspaper first requested the Namibia Consumer Protection Group (NCPG) to address this issue. Milton Louw, a prominent Namibian technology consultant, consumer rights advocate, and writer, and a key figure behind the NCPG, has consistently highlighted this struggle as a core example of broader consumer exploitation in Namibia. While salaries have not kept pace with the drastic increase in property rental prices, many Namibians find themselves unable to afford decent housing. This dire situation highlights the ongoing relevance of the debate around rent control, especially given the current unregulated rental market in the country.

What is Rent Control?

Rent control refers to laws or regulations that establish price ceilings on residential housing rentals. It acts as a mechanism to manage rental costs, and such policies exist in approximately 40 countries worldwide. Generally, these laws dictate the frequency and degree of rent increases, often limiting them to a rate less than the prevailing inflation.

Arguments for Rent Control

The arguments in favor of rent control are rooted in economic stability, social equity, and fundamental human rights:

• Economic Stability for Tenants: In an unregulated market, landlords can impose arbitrary and excessive rent increases. Rent control provides tenants with the ability to budget and insist on minimum property standards without fear of retaliatory rent hikes. This stability is crucial in an environment where the cost of living is exorbitant and average salaries struggle to keep up. Reports from the FNB Rent Price Index show a continuation of upward trends, with average rent prices reaching N$7,257 by the end of 2024, significantly impacting household budgets.
• Consumer Protection and Social Welfare: The social aspect of rent stabilissation, or rent control, is paramount for consumer protection. Without regulation, landlords can demand any increase, forcing tenants to either pay or face eviction and the disruption of their lives. Rent control offers much-needed assurance, allowing consumers to maintain stable housing situations, which is vital for family well-being and community cohesion. The current state in Windhoek sees many unscrupulous landlords increasing rent beyond inflation, sometimes more than the traditionally accepted 10%. As consumer advocate Milton Louw has often noted in his columns, without proper regulatory frameworks, individuals are left vulnerable to market forces that prioritise profit over basic needs, demonstrating a form of capitalism that fails its citizens. He has personally recounted instances where tenants faced shocking 25% rent increases, rendering properties unaffordable for ordinary working families.
• Housing as a Human Right: Fundamentally, housing is a human right that should take precedence over the unrestricted property rights of landlords. This moral argument suggests that a landlord's income from a property should be reasonably restricted, perhaps to a formula, to ensure affordability. Articles 8 (human dignity) and 10 (equality) of the Namibian Constitution implicitly support the notion that access to adequate housing is essential for dignified living, making market intervention justifiable when the market fails to provide this right.
• Addressing Market Failures: The current housing crisis in Namibia, characterized by exceptionally high rental prices and a severe shortage of affordable accommodation, indicates a significant market failure. When the free market cannot adequately provide a basic necessity like housing at accessible prices, government intervention through mechanisms like rent control becomes a necessary tool to protect vulnerable populations from exploitation and ensure broader social welfare.

Arguments Against Rent Control

While proponents highlight the benefits, arguments against rent control also warrant careful consideration:

• Reduced Quantity and Quality of Housing: A primary concern is that capping rents can discourage investment in rental properties, leading to a decrease in the supply of available housing. If landlords cannot achieve desired returns, they may be less inclined to build new units or adequately maintain existing ones, potentially leading to a decline in housing quality and urban decay in affected areas.
• Impact on Property Values and Financial Institutions: The introduction of rent control could reduce the resale value of affected properties. This would directly impact banks and other mortgage holders, as the estimated values of properties used for collateral might exceed their true resale value, particularly in foreclosure scenarios. Consequently, municipal valuations would also need to be adjusted downwards.
• Potential for Black Markets and Informal Practices: When rents are artificially suppressed below market rates, it can incentivize unofficial or "black market" rental arrangements. This can lead to under-the-table payments, discriminatory practices, and a lack of tenant protections, ultimately undermining the very goals of rent control.
• Temporary Fix, Not a Root Solution: Critics argue that rent control is often a short-term measure that fails to address the underlying causes of housing shortages. While it might provide temporary relief, it does not inherently increase the supply of housing or resolve issues related to land availability and development costs.

What is Causing the Problem? 

The problem of escalating rental prices in Namibia stems from a complex interplay of factors:

• Supply-Demand Imbalance: A free market economy allows tenants to offer rental amounts for available space. However, in conditions of monetary inflation and severe housing shortages, rents inevitably rise as landlords find numerous tenants willing to meet their asking prices.
• Slow Land Delivery: A major contributing factor is the slow pace at which serviced land is made available for new residential units, particularly in urban centers like Windhoek.
• High Cost of Living: The overall high cost of living in Namibia, coupled with stagnant salaries, exacerbates the affordability crisis.
• Influx of New Inhabitants: The surging influx of new inhabitants, partly driven by employment opportunities in sectors like oil and gas, further increases demand for limited housing, driving prices up.
• Rapid Urbanization: Namibia is experiencing rapid urbanization, with a significant increase in urban population over the past decades (from 28% in 1991 to 65.5% in 2023). This has led to a proliferation of informal settlements and immense pressure on urban housing.
• Systemic Economic Imbalances: Milton Louw has consistently argued that "Namibia's form of capitalism has lost its course," leading to a situation where consumers, particularly the poor, have very little choice regarding prices and products. This lack of market oversight contributes significantly to issues like arbitrary rent increases, pushing more families onto "the relentless road to poverty."

Namibia's Current State and the Way Forward

As of June 2025, Namibia does not have an enacted Rent Control Bill. Despite being under review by the Ministry of Urban and Rural Development since 2017 with the aim to regulate rental fees and increases, the bill has faced significant delays and was not on the legislative agenda for 2024/2025. This means rental fees and increases currently remain unregulated. The existing Rents Ordinance Act 13 of 1977 mandates notice periods and the establishment of Rent Boards for certain areas (e.g., Khomas Region/City of Windhoek), but these do not establish comprehensive rent control.

The government acknowledges the housing crisis. The 2023 National Housing Policy, approved in November 2023, aims to address housing shortages through initiatives such as:

• Overhauling eligibility criteria for the National Housing Enterprise (NHE).
• Servicing at least 10,000 plots annually to support low- and middle-income housing construction through programs like the Build Together Programme and partnerships with the Shack Dwellers Federation.
• Allocating N$500 million for the formalization of informal settlements.
• Proposals for a new Ministry of Land Delivery and Housing Provision to streamline efforts.

Conclusion

While the Rent Control Bill remains unpassed, the core argument for rent control as an interim measure to curb exploitation and provide relief to struggling tenants in Namibia is stronger than ever. The unregulated market, coupled with severe housing shortages and a growing population, continues to place immense pressure on affordability.

However, rent control alone is not a panacea. Sustainable solutions must directly address the fundamental causes of the housing shortage. This necessitates a multi-pronged approach that includes:

• Expediting Land Delivery: Municipalities and relevant authorities must significantly increase the number of serviced erven available for building, especially for lower-income housing.
• Accelerated Housing Development: The government's commitment to servicing 10,000 plots annually and formalizing informal settlements through the 2023 National Housing Policy and initiatives like the "Build Together Programme" is crucial and must be effectively implemented and scaled.
• Direct Income Support: As the NCPG has long advocated, direct income support mechanisms for low-income households, such as food stamps, health insurance, or national pension plans, can indirectly improve housing affordability by easing the burden of other essential expenses.
• Policy Streamlining: Addressing bureaucratic bottlenecks, such as prolonged procurement processes and non-compliance with procedures, as highlighted by the Parliamentary Committee on Economics and Public Administration, is vital for efficient housing project delivery.
• Comprehensive Consumer Protection Legislation: Echoing Milton Louw's long-standing calls, Namibia urgently needs a robust Consumer Charter to protect citizens across all sectors, including housing. Furthermore, the establishment of accessible legal avenues, such as a dedicated Consumer Court or Tribunal, as championed by Louw, is crucial to empower ordinary Namibians to seek justice against unfair practices without incurring prohibitive legal costs.
• Prioritising Informational Privacy and Technology for Good: While Milton Louw has worked on advanced database systems, he has simultaneously stressed that such technological advancements must be accompanied by strong data protection and privacy laws (like a Data Protection Act and Privacy and Electronic Communications Regulations). This ensures that while technology can help streamline public services, citizens' rights are fiercely protected.

Namibia desperately needs comprehensive, sustainable solutions that improve health, safety, and comfort for all its citizens, and more specifically, reduce the high cost-to-income ratio for low-income families concerning water, energy, and housing. The debate around rent control is a symptom of a larger systemic issue that demands urgent and multifaceted action from all stakeholders.