AT the Namibian Statistics Agency (NSA) we collect various types of statistics. Amongst them is a survey known as the Namibia Household Income and Expenditure Survey (NHIES). This survey is a collection of data on income, consumption and expenditure patterns of households. It also serves as a statistical infrastructure for compiling the national basket of goods used to measure changes in price levels, as well as to update the national accounts.
Today, however, I want to shed some light on the consumption and expenditure patterns of our society. Official figures show that Namibians spend approximately two thirds, or 67 percent, of their income on food and beverages, housing, transport and communication. Food and housing rank at 23 percent each, while transport comes in at 17 percent. Another significant expenditure is that classified as ‘other items’ which stand at 17 percent as well. This tells us that a good 80 percent of people’s income disappears once food, housing, transport and ‘other’ expenses are catered for. Furnishing and equipment, education and health costs consist of 7.5, 2.9 and 1.7 percent respectively.
These expenditure patterns however obviously look slightly different depending on the region. In the Khomas, Erongo and //Karas regions, for example, the average expenditure on food is much less than the national average with 12.6, 16.8 and 19.7 percent respectively. This is totally contrary to the percentage of food consumption spent in the two Kavangos, and Ohangwena, Omusati and Oshikoto regions. There the percentages range from 42.4, 41.7, 40.6 and 40 percent respectively, which is significantly higher than the national average of 23 percent.
The expenditure patterns further show us that the consumption patterns change depending on the main source of income of a household. For example, social safety nets such as state foster care grants, state child maintenance and pensions are predominantly spent on food and beverages. The statistics are 66, 54 and 48 percent respectively. The other majority consumption mostly goes to housing.
Income from business activities is predominantly spent on transport and communication, followed by housing, food and those classified as ‘other items’.
Commercial farming revenue is largely spent on transport and ‘other items’, estimated at 27 percent respectively, while housing and food are at 14 and 12 percent. These patterns clearly show that those with more income spend less money on food and housing, whilst those with less income spend significantly more money on food and housing.
A very interesting analysis is consumption pattern by main language spoken. When it comes to food and beverages, those that indicated their main language to be Rukavango, Oshiwambo and those largely in the Zambezi Region, have the highest spending pattern when it comes to food and beverages at 42, 32 and 29 per cent respectively; much higher than the national average of 23 percent. This is closely followed by those that speak Khoisan, Otjiherero and Nama/Damara at 29, 27 and 26 percent respectively. On the other hand, those that indicated German, English, Afrikaans or other languages, spend significantly much less than the national average on food and beverages. Their averages are at 10 and 12 percent respectively.
In terms of housing, those that speak either English, German, Afrikaans, Nama/Damara or other languages, spend more of their money on housing than the language groups such as those found in the Zambezi, the Otjiherero, Khoisan and Rukavango. Obviously, demographics should be the main reason here. The German, Afrikaans and ‘other’ language speakers spend more money on their transport and communication needs as compared to those that speak Rukavango, Khoisan, Setswana, Nama/Damara and Oshiwambo.
Lastly, the German speaking population spends much less on clothing and footwear as compared to those that speak either Nama/Damara, languages found in the Zambezi and Oshiwambo-speaking people.