The Bank of Namibia (BoN) Governor Johannes !Gawaxab has cautioned against excessive regulation, warning that stringent policies could hinder economic growth and drive businesses into the informal sector.
He stressed the need for a regulatory framework that fosters business efficiency and investment while ensuring consumer protection.
“Namibia is a developing country, yet our regulations often mirror those of more advanced economies. We must acknowledge that our unique socio-economic challenges require a regulatory approach that is both flexible and progressive,” !Gawaxab said.
The Governor highlighted the risks of excessive regulation, citing its potential to stifle innovation, discourage investment, and push businesses into the informal economy.
He also emphasised the importance of fostering a regulatory environment that enables businesses to operate efficiently while maintaining necessary safeguards for the purpose of consumer protection.
This comes as the central bank convened a Regulators Roundtable Engagement on “Smart Regulation for a Dynamic and New Economy” on Thursday, 3 April 2025.
The high-level gathering brought together key regulatory bodies, industry leaders, and policymakers to explore a regulatory approach that balances economic growth, innovation, and consumer protection.
According to BoN, the engagement highlighted key areas where Namibia’s regulatory environment requires reform.
“High unemployment and limited economic diversification remain significant concerns, with unemployment at 36.9% and youth unemployment reaching 44.7%. Regulatory barriers must be re-evaluated to foster job creation and economic transformation. While Namibia has made progress in improving the ease of doing business, bureaucratic bottlenecks continue to hinder investment and entrepreneurship,” said Kazembire Zemburuka, the Bank’s Director of Strategic Communication and International Relations.
The roundtable saw participation from a diverse array of key regulatory and industry institutions, each playing a pivotal role in shaping Namibia’s economic and regulatory landscape.
Among the organisations represented were the Financial Intelligence Centre (FIC), Communications Regulatory Authority of Namibia (CRAN), Namibia Financial Institutions Supervisory Authority (NAMFISA), Payment Association of Namibia (PAN) and Namibia Revenue Agency (NAMRA).
Also present was the Electricity Control Board (ECB), Bankers Association of Namibia (BAN), Namibia Savings and Investment Association (NASIA), Business and Intellectual Property Authority (BIPA), and Namibia Investment Promotion and Development Board (NIPDB).
These institutions collectively contribute to fostering a more dynamic, responsive, and growth-oriented regulatory environment in Namibia.
Zemburuka noted that participants agreed on the need for a harmonised regulatory framework that is agile, adaptive, and responsive to market changes.
“The meeting agreed to promote enhancing regulatory agility to ensure frameworks remain responsive to evolving industries; strengthening cross-sector collaboration among government, regulators, and industry stakeholders; deepening public-private partnerships to ensure regulatory frameworks support investment and growth; and leveraging shared knowledge and best practices to enhance regulatory effectiveness across sectors,” he said.
He added that recognising the need for a national-level approach, the participants agreed to work towards engaging policymakers to advocate for responsive regulatory reforms that support economic growth – in line with the government’s focus on agriculture, industry and enterprise development.
