Of the more than 100 Non-Banking Financial Institutions (NBFI) that were non-compliant with directives issued by the Namibia Financial Institutions Supervisory Authority (Namfisa), more than 90% are operating in the micro-lending sector. Namfisa was established to supervise and advise the finance minister on matters relating to financial institutions and financial services. 

In its first quarter statistical report released this week, Namfisa stated that common causes of non-compliance include the failure to submit regulatory returns, non-payment of levies, and disregard for remedial actions stemming from inspections. The statistical report provides a comprehensive analysis of key trends and performance within the NBFI sector from 1 January to 31 March 2025.

At the end of the first quarter of 2025, Namibia’s NBFI sector consisted of 1 065 regulated entities and 14 761 intermediaries. 

The Namfisa report also provides a snapshot of consumer protection regarding NBFI which indicated 110 consumer complaints were received during the quarter under review. This is an increase of just over 77% from the previous quarter, and just below a 20% decline compared to the same period in 2024. 

However, Namfisa noted that impressively, 89% of these complaints were resolved, with N$204 700 in compensation disbursed to complainants. The microlending industry remained the leading source of complaints, accounting for 59% of total cases. 

Providing an overview of the domestic microlending, Namfisa stated that while loan disbursements declined 6% quarter-on-quarter, the loan book grew 13% year-on-year to N$7.6 billion, with borrower numbers rising to 259 266. 

However, the authority remains optimistic about the NBFI’s short-to-medium-term outlook. Continued collaboration with industry stakeholders and effective supervision remain key to fostering a sound and inclusive financial environment. 

“We thank our regulated entities for their commitment to transparency and cooperation in safeguarding consumer interests and ensuring the long-term sustainability of the financial sector,” Matomola added. 

Namfisa stated that, overall, the Statistical Report reflects continued resilience and steady growth across the NBFI sector, which comprises insurance companies, medical aid funds, retirement funds, friendly societies, capital markets, and microlending institutions. 

Speaking at the release of the report, Namfisa’s chief executive officer, Kenneth Matomola said the NBFI sector maintained a robust performance in the first quarter of 2025. “This is supported by favourable market conditions, strong investment returns, and steady demand across key industries.” 

Moreover, the report indicates that the NBFI sector’s total assets increased by 1.6% quarter-on-quarter and 12.8% year-on-year to just over N$481 billion.  Namfisa noted this was achieved by growth driven by favourable market conditions, strong investment returns, and consistent demand. 

More highlights from Namfisa’s quarterly report indicate assets for the long-term insurance sector reached N$85 billion, with solid solvency improvement and a 4.9% increase in excess assets, despite reduced new policy uptake. On the short-term insurance side, assets grew to N$9.9 billion, driven by inflation-adjusted premiums. However, solvency and liquidity ratios declined amid increased seasonal claims. 

Namfisa also showed that local medical aid funds maintained a stable position with a net surplus of N$229.7 million and a growing membership of over 220 600 beneficiaries. Also, retirement funds investments stood at N$262.8 billion, with a funding level of over 101%, highlighting strong asset-liability coverage. 

On the investment management front, total assets under management rose to N$289.9 billion, with 52% invested locally. Collective Investment Schemes grew to N$108.4 billion, and Linked Investment Service Providers (LISPs) assets reached N$19.6 billion, fuelled by positive investment income and new client inflows.