Chamwe Kaira
Finance minister Ericah Shafudah says the Financial Services Adjudicator Act is not yet operational despite the official implementation of the Financial Institutions and Markets Act and the Namfisa Act on 1 May 2026.
Speaking at the launch of Fima hosted by Namibia Financial Institutions Supervisory Authority (Namfisa) on Wednesday, Shafudah said provisions linked to the Financial Services Adjudicator Act remain in abeyance.
She said extensive preparations were made before Fima came into operation, including the development of 151 supporting regulations and standards by Namfisa and the Ministry of Finance.
Shafudah said investments were also made in risk-based supervision training, systems upgrades and industry consultations.
She called on financial institutions, labour unions and the pension industry to continue working with government and regulators during the implementation process.
“The launch of Fima is not the end of a journey. It is the beginning of a new era,” Shafudah said.
She described Fima as a major step towards improving regulation, financial inclusion and consumer protection in Namibia’s financial sector.
According to Shafudah, the law replaces older and fragmented legislation with a single regulatory framework designed to respond to changes in the financial sector.
She said the act supports Namibia’s national development agenda and aims to strengthen financial sector stability, governance and inclusive growth.
Shafudah said the framework is built on three pillars: financial stability, financial inclusion and consumer protection.
She said the law strengthens the ability of regulators to manage systemic risks and protect pensions, savings and investments.
The minister added that FIMA is also intended to expand access to financial services by supporting innovation and new market entrants, especially for small businesses, women, youth and rural communities.
“For the first time in our regulatory history, consumer protection is firmly placed at the centre of financial regulation,” she said.
Shafudah also addressed concerns around the preservation of retirement savings.
She said many Namibians opposed the proposed regulation, arguing that it did not reflect the realities facing workers and households.
According to the minister, the government responded by holding consultations across all 14 regions involving organised labour, the Ministry of Finance, the Bank of Namibia (BoN), Namfisa and the pension industry.
“As a responsive government, we listened and consulted,” she said.
Shafudah announced that the regulation has now been placed on hold.
She also assured the public that current retirement benefit commutation rules remain unchanged.
Under existing provisions of the Income Tax Act, members of pension, retirement annuity and preservation funds may still access one-third of their savings as a cash lump sum, while provident fund members may continue accessing 100% lump-sum payouts.
