• Contact Us
  • About Us
  • Advertisement
  • Privacy & Policy
Friday, July 11, 2025
SUBSCRIBE
The Brief | Namibia's Leading Business & Financial News
13 °c
Columbus
19 ° Tue
21 ° Wed
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
Subscribe
No Result
View All Result
TB image banner 750x140
Home Companies

Namibia to cap foreign shareholding in banks

by editor
June 27, 2023
in Companies
45
A A
58
SHARES
962
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

You might also like

Namibia’s June inflation hits 3.7%, driven by food, alcohol and housing

O&L Leisure launches rewards programme to encourage local travel

NamRA collects N$12.78 billion in first two months of financial year

The government is set to introduce restrictions on foreign shareholding in Namibian banks in its Banking Institutions Bill tabled in Parliament this week.

This comes as the current Banking Institutions Act lacks any provisions regarding foreign ownership, resulting in the majority of the country’s banks being controlled by foreign shareholders, with only two exceptions.

This is according to Minister of Finance and Public Enterprises, Ipumbu Shiimi who said with a national aspiration for a balanced blend of local and foreign-owned banks, the proposed amendment aims to promote the country’s socioeconomic growth and stability.

“The current Act does not have any restrictions on foreign shareholding in respect of banking institutions,” he said on Monday tabling the Banking Institutions Bill which is intended to repeal the Banking Institutions Act, 1998 (Act No. 2 of 1998) as amended.

“It is a stark reality that all, but two of the eight banking institutions, have majority shareholders of foreign origin. In line with our national aspiration of local empowerment, a desirable blend of local and foreign-owned banking institutions is required to ensure socio-economic development of Namibia.”

Shiimi highlighted that the proposed bill takes into account international standards set by bodies such as the Basel Core Principles for Banking Supervision, the Financial Sector Assessment Program of the International Monetary Fund (IMF), and the Financial Action Task Force (FATF).

He said the need for comprehensive reform became evident following the Financial System Stability Assessment conducted by the World Bank in 2018, which revealed significant weaknesses in the current Banking Institutions Act. 

The Minister said the Bill establishes a regulatory framework for microfinance banking institutions to enhance access to financial services, contributing to financial inclusion in the country.

Secondly, it enhances the Bank of Namibia’s powers to resolve failing banking institutions effectively. These measures aim to strengthen the stability and resilience of the financial sector.

“Insufficient stabilisation powers for the Bank of Namibia to handle failing banking institutions and the lack of a clear definition of beneficial owner were among the identified deficiencies. Addressing these shortcomings is crucial to prevent Namibia from being placed on the FATF grey list and to ensure effective regulation of banking institutions,” he said.

Another important aspect addressed by the Banking Institutions Bill is the requirement for banking institutions to develop recovery plans.

Shiimi said drawing lessons from the global financial crisis, the bill mandates the creation of these “living wills” to ensure that institutions can be resolved in a rapid and orderly manner in case of financial distress or failure.

“One of such regulatory standards is the requirement for banking institutions to have recovery plans (i.e. “living wills”) demonstrating how the institution would be resolved in a rapid and orderly manner in the event such institution experiences material financial distress or failure. In line with the international best standards, the Bill introduces a requirement for banking institutions to maintain recovery plans,” he said.

The bill also focuses on strengthening the independence of directors in banking institutions. Currently, many banks in Namibia are owned by foreign parent companies, leading to concerns about undue interference in local governance.

“By empowering the board of directors, the bill aims to ensure their independence and enhance their ability to execute fiduciary functions in the best interest of the institution and the national economy,” the Finance Minister asserted.

Furthermore, the Banking Institutions Bill grants additional powers to the Bank of Namibia to address non-compliance by banking institutions.

“These powers include the authority to suspend or remove directors or executive officers suspected of engaging in illegal activities detrimental to the institution. The bill emphasises that such measures are taken as a last resort, and the individuals involved will have an opportunity to present their case and be heard.”

According to Shiimi to safeguard administrative justice, the bill establishes an Appeal Board where individuals aggrieved by the Bank’s decisions can seek redress in a cost-effective manner.

This board will be mandated to ensure transparency and fairness in the resolution of disputes.

Lastly, the bill grants the Bank of Namibia authority to regulate fees and charges imposed by banking institutions on their customers. 

“The aim is to protect consumers from exorbitant fees while ensuring the stability of the financial system,” he said.

The effective date for the commencement of the bill will be upon its publication in the Government Gazette.

The bill will now undergo a thorough review and consideration by the Parliament.

 

author avatar
editor
See Full Bio
Tags: companies
Share23Tweet15Share4
Previous Post

Most trade unions non-compliant with Labour Act

Next Post

Embracing vulnerability: It is okay not to be okay in the workplace

Recommended For You

Namibia’s June inflation hits 3.7%, driven by food, alcohol and housing

by reporter
July 10, 2025
0
Namibia’s June inflation hits 3.7%, driven by food, alcohol and housing

Namibia’s annual inflation rate stood at 3.7% in June 2025, with food, alcoholic drinks, and housing costs being the main drivers, according to the Namibia Statistics Agency (NSA)....

Read moreDetails

O&L Leisure launches rewards programme to encourage local travel

by reporter
July 10, 2025
0
O&L Leisure launches rewards programme to encourage local travel

O&L Leisure has introduced a new rewards programme aimed at encouraging more Namibians to travel locally, offering significant discounts on accommodation and dining across its properties. The Leisure...

Read moreDetails

NamRA collects N$12.78 billion in first two months of financial year

by reporter
July 9, 2025
0
NamRA sees drop in illegal vehicle imports following moratorium

The Namibia Revenue Agency (NamRA) has collected N$12.78 billion in revenue between 1 April and 31 May 2025, as part of the current financial year. Of this total,...

Read moreDetails

Namibia’s national parks generate over N$140m annually

by reporter
July 9, 2025
0
Northern Namibia leads tourism growth with 58% occupancy in May

Namibia’s protected areas generate more than N$140 million annually from tourism and conservation fees and support the livelihoods of at least 500,000 people, according to a revised draft...

Read moreDetails

Namibia backs India’s pharmaceutical hub proposal

by reporter
July 9, 2025
0
Namibia backs India’s pharmaceutical hub proposal

Namibia has expressed its full support for India’s proposal to establish a pharmaceutical manufacturing hub in the country under the “Pharmacy of the World” initiative. President Netumbo Nandi-Ndaitwah...

Read moreDetails
Next Post
Embracing vulnerability: It is okay not to be okay in the workplace

Embracing vulnerability: It is okay not to be okay in the workplace

Related News

FNB Namibia named Africa winner at The Banker’s Technology Awards 2025

FNB Namibia named Africa winner at The Banker’s Technology Awards 2025

June 10, 2025
Zambia ratifies Walvis Bay-Ndola-Lubumbashi development corridor agreement

Zambia ratifies Walvis Bay-Ndola-Lubumbashi development corridor agreement

January 31, 2024
World Bank forecasts slower growth rate for Namibia

World Bank forecasts slower growth rate for Namibia

October 4, 2023

Browse by Category

  • Africa
  • Agriculture
  • Analysis
  • Business & Economy
  • Columnists
  • Companies
  • Finance
  • Finance
  • Fisheries
  • Green Hydrogen
  • Health
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • Namibia
  • namibia
  • News
  • Opinions
  • Property
  • Retail
  • Technology
  • Tourism
  • Trade
The Brief | Namibia's Leading Business & Financial News

The Brief is Namibia's leading daily business, finance and economic news publication.

CATEGORIES

  • Business & Economy
  • Companies
    • Agriculture
    • Finance
    • Fisheries
    • Health
    • Property
    • Retail
    • Technology
    • Tourism
    • Trade
  • Finance
  • Green Hydrogen
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • namibia
  • News
    • Africa
    • Namibia
  • Opinions
    • Analysis
    • Columnists

CONTACT US

Cell: +264814612969

Email: newsdesk@thebrief.com.na

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Companies
  • Mining & Energy
  • Business & Economy
  • Opinions
    • Analysis
    • Columnists
  • Africa

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.