Ipumbu Shiimi: Namibia's Financial Sector Strategy - progress made so
far and the way forward
Statement by Mr Ipumbu Shiimi, Governor of the Bank of Namibia, at the official opening of
the Fides branch in Katutura, Windhoek, 24 October 2013.
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Director of Ceremonies
Your Excellency the Ambassador of the Federal Republic of Germany - Mr Onno
Huickmann
Chairman of the Board of Fides Bank Namibia - Mr. Tom Newton
CEO of Fides Bank Namibia, Mr. Michel Arnoult
Managing Director of Hollard Namibia, Mr. Justice Hausiku
Captains of the Industry
Members of the Media
Distinguished Ladies and Gentlemen
A very good morning to you all!
1. I am delighted to join you this morning at the official opening of the Fides, Katutura
Branch and the launch of the I would like to start my remarks with a quote
Dream Saver.
from Clen Sunter, author of books and a renowned business personality. He said: "Poor
people are poor because they are denied the opportunity to make money for
themselves".
2. I believe Fides with its products such as the Dream Saver is creating opportunities
for the poor to make money for themselves. I would therefore like to commend you,
Mr. Arnoult and your team for making this product a reality, which allows low income earners
to save, insure themselves and to achieve a higher living standard. This brings us closer to
achieving the objective of the 10 year Namibia Financial Sector Strategy (NFSS) launched in
August 2012 by the Honorable Minister of Finance. In this regard, allow me to share with you
why Namibia crafted a Financial Sector Strategy, the progress we have made so far and the
way forward.
3. Why a Financial Sector Strategy? The aim of this strategy is to reform Namibia's
financial sector to ensure that Namibia will have an effective, efficient, stable, competitive,
resilient and inclusive financial sector by 2021. As can be noted, one of the critical
components of this strategy is to create an inclusive Financial Sector, accessible to the
majority of the people of Namibia. This will be achieved through targeted products and
services as well as having effective institutions in place that will provide sufficient support to
users of financial services.
4. Director of Ceremony, the next logical question that follows is what progress are we
making in implementing the financial sector strategy to achieve financial inclusion? The good
news is that we are making significant progress. First, financial exclusion has fallen since
2007 from 51% and it now stands at 31%. This progress is a result of the effectiveness of
Government policy and concerted efforts by the financial services industry to bring services
to the doorsteps of the previously unsaved and underserved people.
5. Director of Ceremonies, it is now public knowledge that the introduction of a
low- cost basic retail bank account by all commercial banks is a reality since
This account is treated as a necessity rather than a money making product
November 2012.
for commercial banks, to allow more people to bank and its growth has been phenomenal.
6. You may be aware that the Bank, together with the banking industry has agreed to
implement standards for cash deposit fees in Namibia for all savings and investment
accounts owned by individuals at banking institutions as well as to small and medium
businesses, effective from 31 July and 31 October 2013 respectively. What this means
is that currently individuals are able to deposit a cash amount up to N$2000, per month, into
their saving and investment accounts free of charge. Similarly, small businesses with a
turnover of not more than one million N$ per month will soon be able to deposit up to
N$10 000 in the said accounts without paying cash deposits fees after 31 October 2013.
7. Earlier this year we launched the Code of Banking Practice and the Guidelines for
Lodging Customer Complaints to Bank of Namibia. The Code defines good banking
behaviours and the guidelines help users of financial services to complain about the violation
of the Code. In addition to these actions undertaken so far, there are a number of initiatives
in the pipeline with a view to improve access to finance.
8. How does the future look like? Going forward, we will continue to work hard to
achieve the target of 26% set in the NFSS in terms of improving access to financial services
and products by eligible Namibians. We shall forge ahead to implement the remaining
projects to make Namibia one of the countries in the world where Financial inclusion is not
just a dream, but a dream come true. This includes reforming our regulatory framework to
introduce a differentiated regulatory framework for micro finance banking institutions. The
proposed amendments in this regard have been formulated and public inputs were called for
recently. Further, we will continue to enhance financial infrastructure such as Credit Bureaus
to support access to finance for the majority of our people.
9. Director of Ceremonies, Ladies and Gentlemen, in conclusion, I would like to thank
Fides once again for being a key partner and player in the financial inclusion game. I would
like to encourage the Fides Bank to keep up this good work. Your Dream Saver and other
services are testimony to the fact that low-income people are not only bankable, but they
also insurable.
10. Through the Dream Saver, you have made a difference in the lives of many people
now and for generations to come. With this product you have empowered our people.
Congratulations!
I thank you for your kind attention.