The Bank of Namibia says it will roll out instant payment solutions in 2025. The initiative prioritises financial inclusion by making essential and affordable financial services accessible to all Namibians.
The project will particularly target the rural and informal sectors, which often face challenges in using traditional banking systems.
BoN Governor Johannes !Gawaxab said the project will introduce a user-friendly instant payment solution accessible on any device, including non-smartphones.
This ensures broad participation, especially for those without smartphones or who struggle with traditional banking fees.
“Despite the remarkable achievements recorded to date in the execution of the Financial Sector Strategy, as evidenced by high levels of broad financial inclusion estimated at around 78.1% of the population, segments of our population remain underserved and unserved,” the apex bank governor said.
The Governor further explained that choosing the central bank to lead the project keeps costs low for financial institutions. This is in addition to keeping the new instant payment system affordable for everyone who uses it.
He added that the system will connect all parts of Namibia, from individuals to businesses and government agencies.
‘’This system aims to connect individuals, businesses, and government entities across Namibia, including the payment of social grants, enabling more efficient economic interactions and supporting the growth of digital entrepreneurship,” he added.
The BoN will partner with the Ministry of Finance and Public Enterprises and Namclear, the national clearing house.
The Minister of Finance and Public Enterprises has also approved the establishment of an independent special-purpose vehicle tasked with implementing the Instant Payment Project in partnership with Namclear.
‘’The decision to partner with Namclear is a strategic imperative. Being the only clearing house, which is also designated as a systemically important financial market infrastructure, it is essential that we refrain from introducing fragmented clearing operations in the payment ecosystem. The Bank of Namibia greatly appreciates Namclear’s willingness to partner with the established Special Purpose Vehicle,’’ he said.
