This article is dedicated to the late Phillip Shiimi, who was the chief executive officer of Namfisa and Namibia’s representative at the SADC Committee of Insurance, Securities and Non-banking Financial Authorities (CISNA).
There are many financial institutions apart from commercial banks and development finance institutions that play a vital role in our daily lives, such as insurance companies, micro-lenders, retirement/pension funds, medical aid funds, to mention a few.
These institutions are not only relevant for private households, but also for businesses and the economy in general. Insurance companies, for instance, accumulate substantial savings from private households and the business sectors that can flow back into the economy through investments into the expansion of productive capacities, which in turn generate jobs.
SADC established CISNA as a platform for exchanging information, developing capacity, advancing international best practices among member states and other areas of cross-border cooperation. These areas of cooperation are covered in Annex 10 to the SADC Protocol on Finance and Investment.
Annex 10 includes consumer awareness campaigns that do not feature in any other annexes to the Protocol. Supervisory authorities are encouraged to share information concerning their campaigns and assess their effectiveness in educating consumers about financial products and services.
Namfisa has published the Consumer Education Bulletin – which is available on-line as well as in hard copy – since the beginning of 2011.
There are more than 3 800 companies registered with Namfisa under the umbrellas of ten associations that cover various sub-sectors of non-banking financial institutions, ranging from the Microlender Association to the Namibia Insurance Brokers’ Association and the Retirement Funds Institute of Namibia.
Namibia has achieved most of the commitments entered into under Annex 10 of the FIP and has signed the mutual agreement on information sharing with other CISNA member states.
The FIM Bill is expected to be approved by parliament during the current session. Full membership to IOSCO will also open the door for the Namibia Stock Exchange to become a full member of the World Federation of Exchanges.
The government has also introduced regulations that require pension funds and long-term insurance companies to invest 35 per cent of their assets in Namibian assets and 1.75 per cent of the market value of their investments in unlisted companies.
* Festus Nghifenwa is the SADC FIP Implementation Coordinator at the Ministry of Finance. He can be contacted for comments and further information by email: info.sadc-fip@gov.mof.na. For further information on the SADC Protocol on Finance and Investment see the following website: www.sadc-fip.gov.na.