The Bank of Namibia (BoN) will begin piloting Namibia’s long-awaited Instant Payment System (IPS) in the coming weeks, starting with currently banked social grant beneficiaries, as government moves closer to phasing out cash-based disbursements.
The development follows renewed political backing from Finance Minister Ericah Shafudah during her 2026/27 Budget Speech, where she reaffirmed government’s commitment to implementing the country’s first real-time digital payments platform.
The system will initially focus on Government-to-Person (G2P) payments and is expected to transform how social grants are distributed.
In her address to the National Assembly on Thursday, Shafudah confirmed that social grants currently paid in cash would gradually transition to digital channels under the new framework.
She said the initiative aims to improve efficiency, reduce travel distances and queues for pensioners, and deepen financial inclusion, particularly in rural areas and within the informal economy.
“The Ministry of Finance, the Bank of Namibia, and payment service providers are working together to improve financial inclusion through affordable digital payment services, focusing on rural communities and the informal sector,” Shafudah told lawmakers.
BoN Governor Ebson Uanguta said the initiative reflects a broader commitment to financial sector transformation and inclusive growth.
“This signifies a commitment by the Bank of Namibia and the financial sector to answer our President’s call for meaningful transformation. With this initiative, we aim to improve the lives of Namibians and offer more convenient, affordable financial services beyond costly brick-and-mortar means,” Uanguta said.
According to Instant Payments Namibia (IPN), a subsidiary of the central bank, system integration with participating institutions has been completed successfully, with user acceptance testing currently underway. The pilot phase will initially involve banked beneficiaries before expanding to pensioners and other recipients who presently receive grants in cash.
Participating institutions in the first phase include Bank Windhoek, Letshego Bank Namibia, NamPost and the Bank of Namibia’s Currency and Banking Operations Department.
Once fully implemented, beneficiaries will receive funds directly into their bank accounts or mobile wallets after registering through participating institutions.
The project has faced previous delays, having initially been scheduled for rollout in September 2025 before being postponed to the first half of 2026.
Government has since confirmed a revised timeline targeting the third quarter of 2026 for broader implementation, as technical preparations and stakeholder onboarding continue.
The platform is being developed in partnership with NPCI International Payments Limited, the international arm of India’s National Payments Corporation, and is modelled on India’s Unified Payments Interface (UPI) framework.
Authorities say the system will enable 24-hour instant transfers between bank accounts, mobile wallets and other financial platforms, while lowering transaction costs and improving interoperability across Namibia’s financial system.
