Namibia’s non-banking financial institutions (NBFI) sector has surged past the N$552 billion mark in total assets, underpinned by robust investment performance and sustained demand for financial services, according to the latest data released by the Namibia Financial Institutions Supervisory Authority (Namfisa).
Figures contained in Namfisa’s Fourth Quarter 2025 Statistical Bulletin show the NBFI sector recorded a 4.7% quarter-on-quarter increase and a 16.6% year-on-year expansion, reinforcing its role as a cornerstone of the domestic financial system. The Namfisa report, compiled by the Research, Policy and Statistics division, further highlights that pension funds, long-term insurers, and collective investment schemes remain the dominant forces within the industry, collectively accounting for more than 90% of total assets.
Meanwhile, performance across most segments of the NBFI landscape remained positive during the period under review. The long-term insurance industry posted strong asset growth while maintaining healthy solvency levels, signalling continued financial stability.
Short-term insurers also delivered steady gains, supported largely by increased investment holdings. Meanwhile, medical aid funds reported adequate reserves and a surplus position, alongside modest membership growth.
Moreover, retirement funds continued to show resilience, with assets comfortably exceeding liabilities, underscoring their strong funding positions. In parallel, the investment management and collective investment schemes sectors recorded notable expansion, driven by favourable market conditions and increased investor inflows.
However, the microlending industry diverged from the broader trend, with its overall loan book contracting despite resilient lending activity.
By the end of the 2025 fourth quarter, the NBFI sector comprised 1 193 active entities and 15 512 intermediaries. The industry spans a wide array of financial services, including insurance, retirement funding, medical aid schemes, asset management, capital markets, and microlending.
Despite the sector’s growth momentum, compliance levels remain uneven. Namfisa reported that 61.4% of entities were fully compliant, while 5.2% were non-compliant (Stage 5).
Namfisa noted that non-compliance is largely concentrated within the microlending segment, where recurring issues include failure to submit regulatory returns, non-payment of levies, and ongoing breaches of regulatory requirements.
On the consumer front, the regulator recorded 90 complaints during the quarter, an 8.2% decline compared to the previous period. Of these, 71.1% were successfully resolved within prescribed timelines. Consumers received compensation amounting to N$1.7 million, with the pension funds sector accounting for the largest share of payouts.
Namfisa said the sector’s overall resilience is being driven by favourable investment conditions, consistent demand for financial services, and ongoing regulatory oversight.
The authority reaffirmed its commitment to fostering a stable, fair, and transparent financial system, while strengthening consumer protection and maintaining confidence in the NBFI sector.
As Namibia’s financial landscape continues to evolve, the strong performance of the NBFI sector positions it well for sustained growth in the short to medium term.
–ebrandt@nepc.com.na