The Bank of Namibia (BoN) is taking decisive steps to control high cross-border payment costs and improve transaction speeds, aiming to enhance Namibia’s regional and international trade competitiveness.
Through recent regulatory measures, BoN is capping fees and mandating faster processing times to streamline cross-border payments and support businesses and individuals engaging in cross-border transactions.
Kazembire Zemburuka, BoN’s Director of Strategic Communications and International Relations, said the apex bank’s regulatory efforts focus on keeping transaction costs affordable for end-users.
“With the implementation of PSDIR-9, we have introduced guidelines to curb excessive charges, requiring commercial banks to adhere to capped fees,” Zemburuka told The Brief.
The BoN measures are aimed at reducing the cost burden on Namibian citizens and businesses, fostering a more transparent and equitable financial environment.
In addition to fee regulation, BoN is addressing potential delays in cross-border transactions, particularly within the Common Monetary Area (CMA).
Under a new directive, the Bank mandates that inward cross-border payments from CMA countries, such as South Africa, must reach Namibian recipients within two business days.
The move aims to enhance transaction efficiency, ensuring prompt processing and aligning with the region’s integration goals.
Zemburuka highlighted that, while cross-border EFTs will temporarily transition to the SWIFT network under PSD-9, BoN is working with CMA member countries on a joint strategy to simplify low-value electronic fund transfers.
“Our collaborative efforts seek to reduce transaction costs and wait times, ultimately benefiting consumers and businesses,” he said.
Looking ahead, BoN’s strategic initiatives will see further advancements in payment systems, including the launch of an instant payment system in September 2025.
The real-time system will enable swift transfers across bank accounts, wallets, and financial platforms, marking a significant step toward modernizing Namibia’s financial landscape and supporting regional trade.
