The Namibia Deposit Guarantee Authority (NDGA) reported strong financial and operational performance for 2025, with its Deposit Guarantee Fund increasing to N$40.1 million at year-end, up from N$30.3 million in 2024.
Acting Head of the NDGA, Petrus Shifotoka, said the growth was driven by premium contributions from member institutions amounting to about N$6.4 million, alongside investment income of roughly N$3.4 million.
He noted that the fund has expanded consistently since inception, supported by prudent investment policies and effective fund management.
The fund delivered an annual return of 8%, outperforming its benchmark return of 7.3% by approximately 83.5 basis points, continuing a trend of exceeding benchmarks since inception.
“The fund value grew from N$30.3 million at the end of 2024 to N$40.1 million by December 2025, a trajectory primarily driven by N$6.4 million in member premiums and N$3.4 million in interest earned. During this period, the fund delivered an annual return of 8%, successfully outperforming the 7.3% benchmark by 83.5 basis points,” Shifotoka said.
He added that a key development during the year was the increase in deposit protection coverage from N$25,000 to N$50,000 per depositor, a move expected to strengthen financial security for consumers and boost confidence in the banking system.
Shifotoka said the NDGA’s investment approach remains conservative, prioritising capital safety and liquidity ahead of returns. A significant portion of the portfolio is allocated to floating rate notes, which increased from 36% to 47% during the year. The fund also holds investments in South African Treasury bills, negotiable certificates of deposit and cash.
“Our philosophy follows a strict hierarchy: safety first, liquidity second, and returns third. Currently, 47% of our portfolio is in floating rate notes, up from 36%. We also hold investments in South African Treasury bills, negotiable certificates of deposit and cash accounts for maximum liquidity,” he said.
Operationally, the Authority achieved a 96.7% execution rate on its 2023–2025 strategic plan. Key milestones included the automation of core processes, improved data management systems and enhanced operational efficiency.
Financially, the NDGA reported a 42% increase in surplus for the year, supported by revenue growth and disciplined cost management. Operating expenses rose marginally by 1.7%, reflecting continued efficiency efforts.
