The Namibia Deposit Guarantee Authority (NDGA) has increased the deposit protection limit to N$50 000, following strong growth in its fund, which reached N$40.1 million by the end of 2025.
The announcement was made on Thursday during the release of the NDGA’s latest annual report.
The report outlines the Authority’s operations, governance and financial performance, as well as the progress of its Deposit Guarantee Scheme.
The scheme was created under the Deposit Guarantee Act of 2018 to protect bank customers in case a commercial bank fails.
It ensures that depositors can recover part of their savings, helping to build trust in the country’s financial system.
According to the report, the NDGA fund grew by about 32% during 2025.
This growth was driven by careful management and smart investment of premiums collected from member banks.
The fund’s investment portfolio also performed well, achieving an annual return of 8.1%, higher than its benchmark.
“The fund benefitted from prudent management and a disciplined investment strategy. The returns exceeded expectations,” the report noted.
One of the key changes highlighted in the report is the increase in the coverage limit from N$25 000 to N$50 000 per depositor.
The NDGA said this decision followed an assessment and feedback from the public.
“Depositors expressed concerns that the previous limit did not provide sufficient confidence in the financial system. The new limit offers more meaningful protection and strengthens the credibility of the scheme,” the report notes.
The report comes at a time when the global economy remains uncertain but stable.
According to the International Monetary Fund (IMF), global growth reached 3.3% in 2025, supported by strong investment in technology.
In Namibia, however, economic growth slowed to 1.7% in 2025, down from 3.8% in 2024.
This was mainly due to weak performance in key sectors such as mining and agriculture.
Despite the slowdown, the banking sector remained strong.
Banks continued to be profitable, well-capitalised and liquid.
The level of non-performing loans also improved, dropping to 4.3% from 5.6% in the previous year.
“The banking sector reported sound developments with adequate containment of risks to financial stability,” the report said.
The year 2025 also marked the end of the NDGA’s first three-year strategic plan.
The Authority achieved a high implementation rate of 96.7%, showing strong performance across its goals.
Acting head Petrus Shifotoka welcomed the progress and highlighted the importance of teamwork.
“The successful execution of our inaugural strategic plan was made possible through strong collaboration and support from all stakeholders. Going forward, the NDGA remains committed to its mandate under the new 2026-2028 Strategic Plan,” he said.