The Namibia Financial Institutions Supervisory Authority (NAMFISA) says the long-awaited Financial Institutions and Markets Act (FIMA) will be implemented this year, with final regulatory processes now at an advanced stage.
NAMFISA chief executive officer Kenneth Matomola said the Ministry of Justice is finalising the subordinated legislation required to operationalise the Act following consultations with industry and the public.
“FIMA will be implemented in the course of this year. It is accompanied by subordinated legislation that has been discussed with the public and industry, and these instruments are now being finalised by the Ministry of Justice. They are at the tail end of the process, and the Minister is awaiting the final drafting so that FIMA can be brought into operation,” Matomola said.
FIMA is expected to significantly reshape the regulation of Namibia’s non-banking financial sector by consolidating and harmonising existing laws, while strengthening prudential supervision, governance standards and consumer protection.
Matomola said the move comes as the sector continues to play a dominant role in the country’s financial system.
“Currently, 70% of the country’s financial sector assets are held in the non-banking sector. According to our latest published data, this amounts to more than N$500 billion,” he said.
NAMFISA oversees a broad range of institutions, including insurers, pension funds, medical aid funds, asset managers, collective investment schemes, auditors and micro-lenders.
However, Matomola acknowledged that the existing regulatory framework has limitations, particularly around consumer protection.
“The current Act does not speak to consumer protection and therefore consumer protection becomes a little bit weak,” he said.
He noted that the introduction of FIMA, alongside the new NAMFISA Act of 2021, forms part of broader reforms aimed at modernising supervision and shifting towards a more risk-based regulatory approach.
“I was advised by the Minister of Finance that Cabinet has given the go-ahead to the implementation of FIMA and the new NAMFISA Act,” Matomola said.
Once implemented, FIMA is expected to introduce a range of reforms, including clearer board responsibilities, strengthened codes of conduct and enhanced measures to combat financial crime.
The Act will also introduce provisions aimed at improving financial inclusion. These include enabling micro-insurance products with lower entry costs, simplifying contract language, reducing waiting periods for medical aid schemes and introducing cooling-off periods for consumers.
Matomola said these changes are intended to improve access to financial services while strengthening consumer safeguards across the sector.
