Bank of Namibia governor Johannes !Gawaxab remains steadfast that there are segments in the population that remain financially underserved and unserved.
“Access to essential financial services still needs to be improved in our economy’s rural and informal sectors. These areas predominantly rely on cash transactions due to inadequate or non-existent financial infrastructure, logistical challenges, and high transaction fees and charges” said the governor.
He made these remarks last week at the launch of the instant payment project, a pioneering initiative set to revolutionise financial services across the country.
With 2025 as the targeted official year for its launch, the instant payment project aims to introduce an instant payment solution that is efficient and instantly accessible.
Designed for inclusivity, the platform can be accessed on any device, including non-smartphones, ensuring that everyone - from vendors and taxi drivers to pensioners and small business owners - uses it effortlessly.
“Technical complexities, infrastructure availability and cultural shifts could undoubtedly present obstacles along the way. However, it is precisely in overcoming these challenges that we will demonstrate the resilience and adaptability of our collective resolve,” said !Gawaxab.
He added that it remains imperative to also invest in digital literacy to empower individuals and raise awareness about cybersecurity risks, and the various cyber fraud schemes that exist.
Delivering her remarks at the same event, finance deputy minister Maureen Hinda-Mbuende said with the introduction of instant payment systems, the government is also strengthening consumer protection frameworks.
“It is essential that as we innovate, we also secure and build trust in our financial systems, providing clear and accessible channels for consumer feedback and dispute resolution. This initiative will involve collaboration among regulatory authorities, financial institutions and technology providers,” said the deputy minister.
She added that the new payment system will enhance transaction speed, reduce cost for customers, and make it easier to transact in areas with little or no traditional banking facilities.
Hinda-Mbuende stressed that the success of the project requires a concerted effort from all stakeholders in the financial ecosystem. She emphasised that this is not a task for the government and the Bank of Namibia alone, but is rather a call to action for the entire financial services' industry.
“As policymakers, we must continue to provide supportive legislation and policies that encourage innovation and protect consumers. This entails enacting supportive legislation that reduces barriers to entry and encourages competition, thereby incentivising the development and adoption of technologies like instant payments,” the lawmaker pointed out.