The Bank of Namibia is finalizing regulations aimed at curbing high banking fees and charges, Governor Johannes !Gawaxab has announced.
“We have developed draft regulations on fees and charges. A study was conducted, followed by an impact assessment, which has been submitted to the Ministry of Finance. We are currently in consultation with the ministry. Once these consultations are concluded, we expect the minister to issue the regulations,” !Gawaxab said.
This initiative follows the 2010 study by the Ministry of Finance, which first brought to light the excessive fees associated with Namibian banking products and services.
The primary aim of the BoN’s study was to thoroughly analyze the fees and charges applied within the Namibian financial sector.
“The objectives are to comprehensively assess the current landscape of fees and charges, considering both demand- and supply-side factors; investigate how these fees and charges are determined and structured within the sector; and evaluate the transparency of these fees and their impact on consumer behavior and financial inclusion,” noted the central bank.
The study compared Namibia’s fee structures with those of other countries such as Lesotho, Kenya, India, and Brazil, which have made significant strides in financial inclusion.
Meanwhile, as part of ongoing reforms, the central bank has also revised agent banking guidelines to expand affordable access and empowered local bank boards to make credit decisions under stricter governance controls.
!Gawaxab emphasized that these interventions are designed to promote inclusive banking and support economic activity without compromising financial stability.
“We are asking what can be done by the regulator to support economic agents and banks without overregulating or overburdening them with compliance requirements. Of course, when it comes to capital and liquidity, those standards cannot be compromised. This is not about deregulation. But there are areas where we can make things easier for banks to support economic growth. We are awaiting feedback from the banks on how best we can regulate in a smarter way,” he said.
Meanwhile, Namibia’s prime lending rate stands as the lowest on the continent, tied with Eswatini at 10.5%.
“We cannot have different opinions about facts. The fact is that Namibia, together with Eswatini, has the lowest prime lending rate on the continent at 10.5%. There is a narrative suggesting that we are burdening people with excessively high rates, when in fact the data tells a different story,” !Gawaxab said.
