The Bank of Namibia (BoN) is tight-lipped on the application from Nigerian banking group, Access Bank, for a commercial banking licence in the country.
The bank is said to be seeking regulatory approval for local banking operations after having identified Namibia among other countries of interest.
“The Bank of Namibia does not disclose details about banking license applications. The Bank will formally announce any provisional and final banking licences issued,” BoN’s Director of Strategic Communications and International Relations Kazembire Zemburuka told The Brief in earlier responses upon inquiry if AccessBank had submitted its licence application and progress on the application.
Zemburuka said despite Namibia having made good strides in financial inclusion with eight licensed commercial banks, there is still a demand for banking services, particularly in rural areas.
“The current banking industry is highly concentrated and focused mainly on the urban and the formal economy. There is ample room to expand banking services to rural Namibia and the informal economy. Therefore, any investor who meets licensing requirements can seek approval for authorisation to conduct banking business in Namibia,” he said.
The 2017 Namibia Financial Inclusion Survey revealed that 78% of Namibian adults are financially included, with 72.6% of them formally served and 67.7% served by commercial banks.
On whether the apex bank will ensure that new entrants offer cheaper banking services, Zemburuka noted that new banking entrants must comply with the Banking Institutions Act, which includes offering a fee-free Basic Bank Account, among other requirements.
“All new entrants are required to adhere to regulations concerning banking fees and charges as stipulated in the Banking Institutions Act and other secondary regulations such as offering a Basic BankAccount that is free from any fees and charges,” he said.
This comes as Access Bank Plc in 2021 identified eight African countries for a potential expansion as it seeks to benefit from the African Continental Free Trade Area (AfCFTA) agreement.
The commercial banks operate through a network of more than 600 branches and service outlets, spanning three continents, 18 countries and over 49 million customers.
The Bank employs 28,000 people in its operations in Nigeria and has subsidiaries in Sub-Saharan Africa and the United Kingdom (with a branch in Dubai, UAE) and representative offices in China, Lebanon and India.
