STAFF WRITER
PRESIDENT Netumbo -Nandi Ndaitwah has raised concern over the continued exclusion of those living in the rural areas from fully accessing the country’s financial sector due to a plethora of limitations.
She says despite progress by the Bank of Namibia to effectively discharge its mandate, Namibia’s financial sector continues to be unresponsive to the needs of the rural folk.
Speaking at the launch of new notes and coinage by the central bank on Wednesday Nandi-Ndaitwah said Namibia’s financial sector continues to face significant
challenges that limit its ability to drive inclusive and sustainable economic growth.
“ Access to financial services remains uneven, with rural communities and those engaged in the informal economy still largely excluded from the mainstream financial systems and services, and they are the
majority in our country,” she said. Namndi-Ndaitwah also raised red flags of the country’s high banking charges.
“Banking fees and charges is another major concern for Namibians and have become a topical issue in our parliament, with motions passed to this effect. Tackling this issue is vital for easing the financial burden on consumers in a fair and transparent manner.
“ In this context, the recent directive by the Bank of Namibia to direct banks to reduce the margin between the Repo Rate and the Prime Lending Rate by 25 basis points to align with the Common Monetary Area practice is a welcome development,” she said.
The President said the exclusion deepens poverty and prevents meaningful economic participation for the majority of rural areas and those that are outside the formal mainstream of the economy.
The President also singled out Digital financial literacy as another pressing weakness of the Namibian financial sector.
“ While digital financial services are expanding rapidly, many of our people lack the skills and confidence to use these safely and effectively, leaving them vulnerable to fraud and scams, hence, limiting the full potential of digital inclusion. That calls for education in order to make our people aware of the financial systems at their disposal. In particular, financial services have a great role to play in our agenda of economic and national transformation, hence, a need for it to be inclusive,” she said.
According to Nandi Ndaitwah her administration is targeting resource beneficiation, value addition, and industrialisation as key economic enablers to improve the standards of living for the local folk.
She said the growth of strategic economic enablers such as agriculture, oil and gas, minerals, fisheries and the blue economy require a financial sector that is responsive, and supportive of local content objectives. “Entrepreneurs in these sectors, along with those in
our creative industries continue to face barriers in accessing the finance they need to scale-up their businesses, create jobs, and drive innovation. It is therefore, important that our financial institutions should pay especial attention to local entrepreneurs and business for them to fulfil and firmly participate in the country’s economy being a key to prosperity,” Nandi-Ndaitwah said.
The President sais youth development is another national priority that requires urgent financial sector responsiveness.
“The majority of our population is young, yet youth owned enterprises continue to face systemic financing hurdles, limiting their economic agency and undermining national efforts to harness the demographic dividend,” she said.
She said the National Youth Fund, which will soon be launched, is intended to address this anomaly.
“ In this regard, I urge the financial institutions, particularly commercial banks to play and support this noble national initiative.
It is against this backdrop; the Cabinet approved the Namibia Financial Sector Transformation Strategy (2025–2035). This ten-year strategy is both relevant and timely, providing a structured roadmap to address these weaknesses and unlock the full potential of our financial system.
“Developed through rigorous research, regional consultations, and inputs from public and private sector stakeholders, it seeks to create an inclusive, modern, competitive, sustainable, and resilient financial sector that supports all Namibians. I hereby, direct all stakeholders to rally behind this national blueprint with its official launch taking place on 28th July 2025,” she said
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