Martin Endjala
The Namibia Financial Institutions Supervisory Authority (NAMFISA) disclosed a total income of N$246.7 million for the financial year ending 31 March 2023.
This came with a total expenditure of N$260.6 million, marking a 4.3 percent (N$10.8 million) rise compared to the previous financial year.
Kenneth Matomola, the Authority’s Chief Executive Officer, revealed this financial snapshot yesterday during the unveiling of its annual report.
Matomola said that despite facing significant challenges, notably the COVID-19 pandemic, Russia’s invasion of Ukraine, and surging commodity prices, the Authority sustained its mandate delivery.
NAMFISA, he asserted, is concentrated on maintaining the financial stability and soundness of the non-bank financial institutions sector.
The funding position continued to surpass prudential requisites during the review period, with levy income representing a marginal increase of 0.09 percent (N$200,000) at N$228.9 million.
However, the annual report shows a surge in staff costs by 4.8 percent to N$191.2 million and a total comprehensive deficit of N$8.9 million, juxtaposed with a predicted deficit of N$22.8 million.
Despite these strains, the non-bank financial sector showcased resilience, albeit with assets diminishing by 1.2 percent to N$366.2 billion in 2022, reflecting the tepid performance of equity markets domestically and internationally.
The sector remains vulnerable to various risks, including inflation impacting service affordability, especially within medical aid funds, and long-term and short-term insurance. However, the sector retained its solvency, foreseen to persist in the short-to-medium term.
The risks to the stability of Namibia’s financial system have seemingly subsided since 2022, but new risks stemming from macroeconomic developments have emerged, affecting household and corporate debt and reverberating through banking and non-banking financial sectors.
During the year, 93.4 percent of the 730 received complaints were resolved, with a significant majority relating to microlending, insurance, and pension funds.
Post-NAMFISA’s mediation, N$5.6 million was reimbursed to 149 complainants.
However, total investments fell by 18.0 percent to N$204.6 billion as of 31 December 2022, with direct investments and the value of insurance policies seeing varied changes.
Namibian assets exhibited a slight increase, constituting 49.7 percent as of 31 December 2022. Additionally, the overall number of household borrowers witnessed a 4.7 percent annual increase, reaching 244,697, dominated by the term lenders category.
Correspondingly, the value of the loan book experienced a 7.8 percent decline year-on-year, with term lenders maintaining a substantial share at almost 96 percent.
