The Namibia Financial Institutions Supervisory Authority (Namfisa) says it is committed to enhancing its capacity for the implementation of the Consumer Credit Bill.
The bill, which is currently being drafted, aims to regulate and supervise the consumer credit sector in Namibia. It is expected to come into effect in 2024.
Namfisa’s Deputy Chief Executive Officer of Market Conduct and Operations Johannes Smit said the authority is aware that it needs to significantly increase its capacity in order to effectively implement the bill.
“We will probably need to raise funds from this new makeup industry that we’ll have to regulate and supervise,” he said. “And we’ll need to make sure that it’s efficient enough to assure that we’re capable, so we’re not there yet.”
Smit explained that the influx of transactions in the consumer credit sector is expected to increase significantly once the bill is implemented. This will put a strain on Namfisa’s resources and capabilities.
He said the authority is currently exploring ways to generate the necessary funding to enhance its capacity. This includes exploring partnerships with other stakeholders in the financial services sector.
Smit also said that Namfisa is working to develop a comprehensive capacity-building plan. This plan will focus on areas such as training, technology, and infrastructure.
The authority is also engaging with stakeholders in the consumer credit sector to get their input on the bill. This input will be used to further refine the bill before it is finalized.
The Consumer Credit Bill is a significant piece of legislation that will have a major impact on the consumer credit sector in Namibia.
“The Bill applies to all credit agreements between parties dealing at arm’s length and made or having an effect within Namibia, except where the consumer is a large juristic person whose asset value or annual turnover equals or exceeds the threshold value determined by the Minister of Finance; the consumer is a public body; the credit provider is the Bank of Namibia; or the principal office of the credit provider is located outside Namibia,” the Authority explained.
The regulator said the Bill doesn’t apply in certain situations where the credit is given between people or companies who have a close relationship.
“The Bill does not apply where the credit is extended between parties who are not dealing at arm’s length, for example, shareholder loans; parties in a familial relationship where co-dependency is a factor; parties in an employee-employer relationship where the extension of the credit does not fall within the employer’s ordinary course of business; or parties are not independent of each other and does not necessarily strive to obtain the utmost possible advantage out of the transaction,” said Namfisa.
Namfisa’s commitment to enhancing its capacity for the implementation of the bill is a positive step towards ensuring that the bill is implemented effectively and that consumers are protected.
