The Namibia Financial Institutions Supervisory Authority (NAMFISA) on Wednesday signed testing agreements with Verime and ReferredBy, making them the first participants in its Regulatory Sandbox programme for the non-bank financial institutions sector.
NAMFISA’s Regulatory Sandbox is a pioneering initiative demonstrating its commitment to fostering a vibrant, secure, and inclusive financial landscape that empowers both consumers and innovators.
“We are signing testing agreements with two pioneering innovators, ReferredBy and Ergo Analytics CC (known as Verime), who will participate in the Sandbox. Their innovative solutions have the potential to revolutionise the financial landscape in Namibia, and we are excited to support them on their journey. As you can see these young Namibians intend to bring about innovation within the sector, creating jobs and improving the lives of many Namibians through affordable and accessible financial services,” said NAMFISA Chief Executive Officer Kenneth Matomola.
According to Matomola, the Authority received a total of 10 applications in the first cohort of applications of which five focused on the micro-lending sector.
Of the five applications, the Authority has approved three applicants who are ready and fully adhere to requirements, whereas the third participant will soon be called.
“It is, therefore, important that as regulators and the country at large, we give them all our support. As ReferredBy Financial Solutions CC and Ergo Analytics CC (Verime) embark on their live testing journey within the Sandbox, we remain committed to ensuring consumer protection, fairness, and risk mitigation. Their insights and experiences will be invaluable as we continue to shape the future of financial regulation within the Non-bank Financial Institutions sector in Namibia,” he stated.
In addition, Matomola said the primary objectives of the NAMFISA Regulatory Sandbox are to promote innovation in digital and non-digital financial services and to enhance financial inclusion.
It further serves as a controlled environment for live tests of innovative products, services, or solutions within specified parameters, under the supervision of NAMFISA.
Furthermore, he said the lessons to be learned from the Sandbox will inform NAMFISA’s regulatory framework, ensuring that it remains conducive to innovation while safeguarding the interests of consumers.
“By fostering a culture of innovation and inclusivity, we are laying the groundwork for a transformed financial sector that is safe, efficient, and accessible to all. I am also proud to say that we are one of the few Regulators in Africa that have launched a Regulatory Sandbox. This journey, we expect not to be easy, but it is critical to embark on it, learn and adapt along the way. To stay stagnant is not an option, in a world that keeps moving despite the challenges,” he said.
