The Parliamentary Standing Committee on Economy and Industry, Public Administration and Planning is probing whether the current lending practices are placing excessive pressure on workers and whether existing laws are sufficient to protect borrowers.

The committee's Chairperson, Iipumbu Shiimi, said the committee has already engaged various stakeholders, including unions, and is now seeking input from the lenders.

There are concerns regarding whether public servants are being specifically targeted, as their salaries offer lenders a reliable source of repayment. Shiimi indicated that even workers considered lower-risk borrowers are still facing interest rates of approximately 30%.

"We also want to know whether the laws that already exist are sufficient to protect borrowers from exploitation over the years. We have seen the existing laws that we, as members of parliament, need to look at together with the alternative to make sure that there are gaps in the legislation."

The Bankers Association of Namibia Chief Executive Officer, Dantagos Jimmy, said the country's household debt crisis should not only be viewed as a result of excessive borrowing but also as an income crisis, which forces many Namibians to rely on credit to meet their basic needs.