One of the challenges facing education systems worldwide is the motivation of qualified teachers to teach at rural schools. Teaching at rural schools is a challenge as rural areas are characterised by adverse living and working conditions, making qualified teachers prefer living and working at urban schools where conditions are more comfortable. Namibia implemented the financial incentive to motivate qualified teachers to teach at rural schools and improve learner performance. The implementation of the financial incentive in Namibia has received little research attention in establishing its effectiveness. The purpose of this study was to evaluate the effectiveness of the financial incentive on the performance of learners at rural schools, as this performance relates to teacher motivation. To achieve this, a literature study and an empirical investigation were conducted. An interpretivist research paradigm informed the methodology for the study. A mixed-methods research approach, which relied more on a qualitative research design, included a research sample of 28 teachers, five school principals and two education officials. Data were collected through interviews and document analysis. Individual interviews were conducted with education officials and school principals. Focus group interviews were conducted with teachers. Document analysis entailed accessing applicable documents of each research site in the office of the school principal. Textual data were analysed and presented thematically and numeric data were analysed and presented as frequencies and percentages. Key findings established that financial incentive has contributed little to the performance of learners in rural schools. The fact that rural schools are not properly categorised according to environmental challenges results in teachers not receiving realistic financial incentive. Teachers were therefore not motivated by financial incentive, but by other factors relating to being tuned to nature in rural areas, being exposed to lower living costs and enjoying accommodating school leadership and community care. A revisiting of the implementation of the financial incentive is recommended in order to negate shortcomings and enhance the potential of financial incentive to contribute to improved learner performance as steered by motivated teachers. / Educational Studies / Ph. D. (Education)