The microlending sector accounted for the bulk of serious regulatory breaches in Namibia’s non-banking financial institutions (NBFI) industry during the first quarter of 2025, according to the latest report by the Namibia Financial Institutions Supervisory Authority (NAMFISA).
Of the 107 institutions flagged under the authority’s most severe non-compliance category, known as Stage 5, more than 91% were microlenders.
“The sector demonstrated mixed levels of compliance: 58.7% were fully compliant and classified under Stage 1, while 10% fell under Stage 5. Of those, 91.6% were from the microlending sector,” said NAMFISA CEO Kenneth Matomola.
Common violations included failure to submit statutory returns, non-payment of levies, and failure to implement remedial measures following regulatory inspections.
Microlenders were also the subject of most consumer complaints. Between January and March 2025, NAMFISA recorded 110 complaints — a 77.4% increase from the previous quarter — with microlenders accounting for 59% of the cases. Of the total complaints received, 89.1% were resolved, resulting in N$204,700 paid out in compensation.
“Complaints against microlenders made up the largest share. Despite the increase, 89.1% of all complaints were resolved and N$204,700 was disbursed to complainants,” Matomola noted.
Despite the regulatory concerns, the microlending sector’s loan book grew by 13% year-on-year to N$7.6 billion, although loan disbursements declined by 6% compared to the previous quarter. The number of active borrowers continued to rise, reaching 259,266.
“Term-lender loans decreased by 7.0% quarter-on-quarter but grew 10.0% year-on-year. Borrower numbers continued to rise, reaching over 259,000 during the review period,” Matomola added.
As at 31 March, the wider NBFI sector comprised 1,065 regulated entities and 14,761 intermediaries. The sector’s total assets stood at N$481.6 billion — an increase of 1.6% from the previous quarter and up 12.8% year-on-year.
