The Namibia Deposit Guarantee Authority (NDGA) aims to increase the value of the Deposit Guarantee Fund from its current N$39.4 million to N$100 million by the end of 2028, according to its Second Strategic Plan for the 2026–2028 period.
The Authority said the target will be achieved through prudent investment management, with funds placed in markets in line with strict investment policies aimed at maximising returns while prioritising capital preservation.
“Invest funds in line with the Authority’s investment policies and guidelines, and determine a threshold for operational costs to grow the Fund value from N$39.4 million to N$100 million,” the report stated.
The report further noted that the NDGA Board recently increased the guaranteed coverage limit from N$25,000 to N$50,000 per depositor per institution.
The adjustment is expected to ensure that more than 90% of depositors in Namibia would receive their funds in full should a member institution fail.
The Authority said operational efficiency remains a priority, particularly through the maximisation of premium collection, with efforts focused on improving processes to ensure that all member institutions contribute accurately and on time to the deposit protection framework.
“Ensuring operational efficiency enables an institution to operate smoothly and achieve its set objectives. In the Authority’s case, it will look at leveraging the process efficiencies of relevant institutions, particularly for the pay-out process,” the report stated.
Financial sustainability will also be supported through stricter control of operational costs. The Board, in conjunction with the Minister of Finance, will approve specific thresholds for operational spending to ensure that a larger share of resources is retained within the Fund.
Beyond financial targets, the 2026–2028 strategic plan places emphasis on operational excellence. By 2027, the NDGA plans to automate its risk categorisation and premium calculation models as part of a move towards a more data-driven and responsive system.
The Authority also plans to establish an Emergency Liquidity Facility by 2028 through an agreement with the Bank of Namibia and the Ministry of Finance. The facility is intended to guarantee immediate payouts to depositors in the event of a temporary funding shortfall during a financial crisis.
“The Authority has signed an agreement with the Bank of Namibia for the Bank to manage the Fund in line with the approved Investment Policy and guidelines. The objective of the Deposit Guarantee Fund Investment Policy is to provide guidance in respect of investing the available financial resources accumulated in the Deposit Guarantee Fund,” the report stated.
The NDGA serves as an insurer for the Namibian banking sector, providing protection to depositors in the event of a bank or building society failure.
