CHAMWE KAIRA
The Non-Banking Financial Institutions (NBFI) assets amounted to N$419.4 billion at the end of 2023, according to figures given to Observer Money, by the Namibia Financial Institutions Supervisory Authority (Namfisa)’s Chief Executive Officer, Kenneth Matomola.
Number of regulated entities as at 31 December 2023, included 78 active pension funds, seven medical aid funds, one active friendly society, 14 long-term insurance companies, 14 short-term insurance companies, 21 special purpose vehicles, 21-unit trust management companies, 31 investment managers, 31 unlisted investment managers, 560 microlenders, one stock exchange, four linked investment services providers, four stockbrokers, including sponsors.
Namfisa exists to supervise and regulate the business of financial institutions and financial services and to advise the Minister of Finance and Public Enterprises on matters relating to financial institutions and financial services.
Namfisa’s regulates a sector that is significant by any measure in that it comprises several different financial institutions and intermediaries.
Its core functions are supervision, advice, auxiliary functions including anti-money laundering and combating the financing of terrorism among others.
Matomola said short-term and long-term insurers are well-capitalised, and retirement funds have reserves actuarially certified to be sufficient.
But he said conversely, the viability of medical aid funds has been hamstrung by elevated health inflation rates and higher member utilisation rates.
He added that medical aid funds are being subjected to close monitoring, with solutions being discussed with the relevant industry players.
“On aggregate, NBFIs are stable and we do not foresee any adverse shocks to the stability of the financial sector emanating from NBFIs in the short-term. Going forward, shocks to the stability of NBFIs include volatility in financial markets; as well as changes in the demand for NBFI products – which is affected by interest rates, inflation rates, and economic development. However, as reported in the 2024 Financial Stability Report, the probability of viability concerns materialising in 2024 are low,” he said.
Namfisa’s mission is to regulate and supervise financial institutions and financial intermediaries to foster a stable and fair non-banking financial sector, promote consumer protection, and provide sound advice to the Minister of Finance and Public Enterprises.
With this in mind, the vision is to have a safe, stable, and fair financial system contributing to the economic development of Namibia in which consumers are protected.
