CHAMWE KAIRA
Microfinance credit providers have a critical role to play in shaping the financial landscape of Namibia, Lara Enslin, CEO of TransUnion Namibia has said.
She said Namibians are navigating an economic environment that is both challenging and filled with opportunities.
Enslin said TransUnion works with lenders and regulators around the world to help increase financial inclusion and benefit individuals and their families, while acting as a catalyst for increased economic growth.
The recent Namibian census has revealed that the population has surged to 3.02 million. A significant 71% of the citizens of the country are younger than 35.
According to Enslin, this demographic presents a unique opportunity for microfinance credit providers to expand financial access to a younger generation who is eager to participate in the economy but often lack the means to do so.
Within this segment, TransUnion estimates that 1.66 million adults are eligible for credit participation.
Despite this, Enslin said less than 674 000 individuals are currently credit active or credit visible.
Enslin said these numbers highlight the urgent need to widen the net of financial inclusion, particularly for young adults.
According to the Namibia Financial Institutions Supervisory Authority’s (NAMFISA)’s statistics, there were 674 registered microfinance credit providers in Namibia who serve over 180 078 clients annually.
The Microlending Act, which has been instrumental in regulating and guiding the industry. Enslin said regulation alone is not enough. “To harness the potential of the micro-lending sector, we must foster strong partnerships between microfinance credit providers and other stakeholders.”
Enslin added that the role of microfinance credit providers in Namibia is therefore twofold. On the one hand, they are catalysts for financial inclusion. On the other hand, they become stewards of responsible lending.
“By providing access to credit for those who need it most, microfinance credit providers help to level the playing field, giving more Namibians the opportunity to participate fully in the economy. At the same time, by adhering to responsible lending practices and working within a regulated framework, they help to ensure that this participation is sustainable and beneficial in the long term,” she said.
Enslin said the microfinance industry in Namibia extends beyond a financial service provider function. She said instead, it is about putting in place the framework that grows the number of economically active Namibians.
“By working together, sharing insights, and fostering responsible lending practices, we can ensure that the opportunities within this sector are fully realised, benefiting not just the individual borrowers but the entire Namibian economy.”
