The Bank of Namibia (BoN) says effective 30 September 2024, debit order payments to and from South Africa will no longer be permitted under Namibia’s new Electronic Fund Transfer (EFT) regulations.
These regulations, outlined in the Determination on the Conduct of EFT (PSD-9) and the Directive on the Speed and User Fees and Charges of Common Monetary Area (CMA) Transactions (PSDIR-9), mark a significant shift in how domestic and cross-border transactions are processed.
BoN’s Director for Strategic Communication and International Relations Kazembire Zemburuka said the central bank’s new directive, PSDIR-9, aims to enhance the security and efficiency of cross-border payments.
This is done by discontinuing these transactions and introducing new guidelines to regulate the speed and costs associated with international transfers.
“PSDIR-9 will regulate the speed and costs of cross-border payments to ensure minimal disruption to customers,” he said.
He further explained that under the new rules, all domestic EFT transactions will be processed within Namibia, enhancing the security and integrity of the country’s financial system.
Currently, these transactions are often routed through South African banks.“This change will replace the current practice of processing Namibian EFTs through South African banks, enhancing the integrity of Namibia’s financial system,” he said.
He also explained that cross-border transactions between Namibia and other Common Monetary Area (CMA) countries, particularly South Africa, will be treated as international transactions and processed through the SWIFT network.
“Key changes include the treatment of cross-border EFT transactions within the CMA, which will now be conducted through the SWIFT network,” he said.
In April, the Bank postponed the rollout of the changes regarding how clients make and receive payments between Namibia, Eswatini, Lesotho, and South Africa, collectively known as the CMA. These changes were scheduled to become effective from 15 April 2024.
