CHAMWE KAIRA
A total of 98 consumer complaints were registered in Namibia’s non-banking financial institutions (NBFI) during the first quarter of this year, reflecting an 8.9% increase from the previous quarter.
Of these, 91.8% were successfully resolved, all within the prescribed service-level agreement timelines. Total compensation awarded to consumers amounted to N$1.7 million, with the short-term insurance sector accounting for 61.1% of the total compensation.
The NBFI sector, comprising insurance companies, medical aid funds, retirement funds, friendly societies, capital markets, and microlending institutions, recorded a total of 1 220 active entities at the end of the first quarter of this year, the Namibia Financial Institutions Supervisory Authority (NAMFISA) announced in its first quarter 2026 Statistical Bulletin.
Abel Sindano, general manager of research, policy and statistics at NAMFISA said compliance levels across the sector remain mixed, with 58.7% of entities fully compliant (Stage 1), while 5.1% were classified as non-compliant (Stage 5).
Most non-compliant entities are concentrated within the microlending industry, accounting for 85.5% of all Stage 5 entities.
The primary drivers of non-compliance include failure to submit regulatory returns, non-payment of levies, persistent non-adherence to regulatory requirements, and dormant operations.
The NBFI sector demonstrated resilience during the quarter, withstanding financial markets headwinds arising from inflationary pressures.
Performance across industries remained largely positive, the retirement funds industry remained financially sound and adequately funded, with assets continuing to exceed member liabilities.
The investment management and collective investment schemes sectors recorded continued growth, supported by favourable market conditions and the investment income, and investor inflows.
Sindano said the microlending industry recorded a decline in its overall loan book, largely attributable to a contraction in the term-lending portfolio.
“Overall, the sector continues to demonstrate resilience, positioning it well to support the ongoing development of the financial sector and to maintain stability over the short to medium term.”
NAMFISA exists to supervise financial institutions and financial services, and to advise the minister of finance on matters relating to financial institutions and financial services.
NAMFISA is further responsible for supervising and enforcing compliance with the Financial Intelligence Act, with respect to all accountable and reporting institutions supervised by NAMFISA in terms of the NAMFISA Act.
This relates to the business of long-term and short-term insurance; asset management; unit trusts (collective investment schemes); retirement funds; friendly societies; medical aid funds; exchanges, brokers and agents and microlenders.
