What Are the Aims and Objectives of
NAMFISA?
As identified in our mission
statement, NAMFISA’s aim
is to effectively regulate and
supervise financial institutions in
Namibia. Furthermore, our vision is to
be a respected regulator of the financial
services sector that fosters a stable and
safe financial system contributing to
the economic development of Namibia.
What Were the Achievements of
NAMFISA During the Past 15 years?
To appreciate humble gains attained at
the Authority, it is important to go back in
time to contextualise the background and
previous state of affairs.
As evident in continual negative
reporting some years ago, the public and
media perception of NAMFISA was very
poor. Relationships with the Board and
Minister of Finance were not sound. Staff
were disgruntled and motivation was low.
Supervisory activities were low and nonexistent
for some sectors.
With such a tarnished image, it was
very difficult to attract and retain skilled
and competent employees, but thanks to
the three3 year rolling transformation
strategy which commenced in 2013,
hard work, perseverance, commitment
and support from various stakeholders,
today a completely different picture can
be seen at NAMFISA. Some regard this
as phenomenal transformation.
Amongst the many outcomes are the
following:
Best Annual Reports in Namibia. For
two consecutive years (2013 and 2014)
NAMFISA’s annual reports have been
rated the best in the country (PMR.africa
– 1st place, Diamond Arrow Award i.e.,
Outstanding)
Best company/institution demonstrating
exceptional management and corporate
governance activities in Namibia in
2014 (PMR.africa – 1st place, Diamond
Arrow Award i.e., Outstanding). This is
a tremendous improvement from the previous
classification of “worst managed
SOE”.
In 2015 NAMFISA received an
International Quality Award. The
Authority is one of 30 entities from
across the globe that received this award
at a ceremony held in Paris, France. The
award was conferred in recognition of the
Authority’s commitment to quality and
excellence of service.
An independent survey conducted
in 2014 by NaMedia (Namibia Media
Monitoring) revealed that the NAMFISA
profile in the media had shifted from
negative to positive. Statistics indicate
that 70% of media reporting regarding
the Authority was positive.
The situation has turned around with
the Authority being one of the highly
sought after employers in the country.
The Authority has managed to attract
and retain highly skilled employees.
Amongst these, the Authority has
recruited 11 admitted legal practitioners,
four Chartered Accountants (CA), and
over 24 employees with Masters Degrees.
NAMFISA regulatory and supervisory
activities have improved tremendously
and have garnered a strong list of
achievements which include:
The introduction and regularisation of
on-site inspections of regulated entities;
The Authority has adopted a zero
tolerance for non-compliance as evident
in hundreds of licence cancellations and
millions in penalties/fines imposed;
As part of its commitment to service
excellence, the Authority has introduced
service level commitments that it issued
to regulated entities;
Amendment to the Unit Trust Control
Act in order to strengthen the legislative
framework was drafted and finalised;
Amendment to the Pension Funds Act
to allow for unlisted investments and
granting of loans for acquiring properties
in unproclaimed areas;
Revised regulations 15, 28, and 29
and Future…
issued under the Long Term Insurance
Act and Pension Funds Act, respectively;
Introduction of an Electronic
Regulatory System (ERS) for operational
efficiency; and
Drafted NAMFISA and FIM Bills, after
wide consultations within the market The
Bills were submitted to the Minister of
Finance, and are now with Government
legal drafters in the Ministry of Justice.
The Authority’s productivity and
intellectual capacity has significantly
improved in many areas, some of which
are listed below:
In addition to timely and best annual
reports in the country, the Authority
issues quarterly statistical bulletins,
quarterly consumer education bulletins,
and quarterly regulatory reform
newsletters;
During the past year, the Authority has
drafted, obtained ministerial approval,
and concluded market consultations
for the Micro-Lending and Financial
Services Adjudicator Bills;
During the past 12 months the
Authority drafted 86 regulations and
standards that went through expert
reviews and some are now distributed
in affected industries for inputs and
consultation;
On average, the Authority receives
more than 50 complaints monthly and
resolves more than 95% of them; and
The Authority developed and
introduced Regulation 29. We are proud
to say that we are the only regulatory
and supervisory Authority across the
globe that has developed a framework
for investments of pension funds in
unlisted investments. Of course there will
be teething challenges as we spread our
regulatory mandate in wider sections of
the economy. However, these glitches and
occasional gaps are altered and amended
as they occur. Despite the challenges, all
Namibians should be proud of the fact
that we are the world’s pioneer in this
area.
The Authority has moved from a lowly
regarded regulator to a highly regarded
one. This is evident in the following:
Regulators in the SADC region
continually send their staff for attachment
to NAMFISA;
Client satisfaction surveys conducted
on behalf of the Authority by an
independent research company revealed
more than 70% satisfaction rate of
regulated entities with respect to on-site
inspections, industry forums; and
Client satisfaction surveys conducted
revealed more than 80% satisfaction rate
with respect to complaints resolution.
Even with the successes recorded, there
is still a lot more to be done. However,
this is only possible with the continued
support of all our stakeholders.
What Were the Challenges that
NAMFISA Faced in the Past 15 Years?
NAMFISA’s environment is extremely
complex and challenging. However, our
role as a regulator is exciting and provides
an opportunity to strengthen the nation.
The job is challenging due to a number of
factors including:
Rapidly changing environment (market
and international regulatory practices);
Large work volume (9 sectors, more
than 3500 registered entities);
Striking a balance between
implementing current legislation whilst
working on future legislation (several
bills);
Dealing with a multitude of consumer
complaints stemming from a combination
of limited literacy and some service
providers’ limited orientation to treat
customers fairly;
Authority’s on-going transformation;
High litigation risks;
Fending off those that are not satisfied
with the Registrar’s decisions;
Striking delicate balance between the
imperative for consumer protection in
Namibia and participation by previously
disadvantaged Namibians in the financial
services sector.
What Are the Responsibilities of
NAMFISA?
To regulate and supervise Namibia’s
financial services sector and to advise the
Minister of Finance on related matters.
Additionally, we are responsible for
consumer protection and for ensuring
that our consumers are financially literate,
hence our Consumer Education strategy.
What Can the Namibian Society
Expect from NAMFISA in the Future?
The envisaged promulgation of the
NAMFISA, FIM, FSA and Micro Lending
Bills can assist to achieve the objectives of
the Financial Sector Strategy which are:
A deepened, an efficient and developed
financial system;
Respected, world class and effective
regulators;
A stable, well-regulated and competitive
financial sector;
Significant local ownership of financial
institutions;
An inclusive financial sector; and
Financially literate and protected
consumers of financial services and
products.