Ipumbu Shiimi: Credit information sharing in Namibia
Welcoming remarks by Mr Ipumbu Shiimi, Governor of the Bank of Namibia, at the launch of
the Namibia Data Sharing Alliance, Bank of Namibia, Windhoek, 2 March 2015.
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Director of Ceremony
Dr Prega Ramsamy, CEO of FinMark Trust
Mr Phillip Shiimi, CEO of NAMFISA
Mr Darrel Beghin, Executive Director, Credit Provider Association of SA
Mr Grant Phillips, CEO Africa Regions, TransUnion
Mr Frank Lenisa, Director, Compuscan
Representatives of Lending Institutions,
Distinguished invited Guests,
Members of the media,
Ladies and Gentlemen,
Good morning and welcome to the Bank of Namibia!
It is my singular honour and pleasure to join you this morning at this occasion to mark the
launch of the Namibia Data Sharing Alliance. As you may recall, on 19 August 2013, I
officiated at the Credit Information Sharing Workshop held in Windhoek organised by
FinMark Trust. The purpose of the Workshop was to explore potential approaches and
actions that could improve the quality and flow of credit information in Namibia for the benefit
of credit providers and, ultimately, their consumers. That Workshop paved the way for the
establishment of Namibia Data Sharing Alliance, as a platform for credit information sharing
among credit providers in Namibia. What we are witnessing today is a beginning of an
exciting journey for Namibia in terms of credit information sharing.
Ladies and gentlemen, the launch of the NDSA comes at a time when the Bank is in the
process of implementing the regulatory framework for Credit Bureaus. As you may be aware,
Namibia did not previously have legislation for regulating credit bureaus. That position
changed in August 2014 when the Credit Bureau Regulations were gazetted. The
Regulations are meant to regulate the operations and conduct of credit bureaus, in order to
ensure that credit information sharing is carried out within the confines of the law. As part of
the provisions of the Regulations, credit providers in Namibia are now required to provide
credit performance information to all registered credit bureaus. The purpose of this provision
is to ensure that a complete picture of individual borrowers is obtained, to enable
comprehensive affordability assessments to be done with a view to curb over indebtedness
of customers. This is in line with the Bank's mandate of enhancing and maintaining stability
in the financial sector. Therefore, the broader objectives of the NDSA and the Credit Bureau
Regulations are complimentary in nature.
Ladies and gentlemen, the rate of a country's economic development is driven by the ease
with which individuals and productive enterprises such as SMEs access funding. Therefore,
the Namibia Financial Sector Strategy (NFSS), launched by the Honourable Minister of
Finance in 2012, has financial inclusion as one of its key strategic goals. Although financial
exclusion has been reduced from baseline of 51% determined in 2007 to 31% in 2011, the
intention is to reduce it further to 26% by 2021. In order to reach the set target, as a country,
we need to devise various strategies such as improving credit information sharing, which is
regarded as the catalyst to financial inclusion.
Ladies and gentlemen, good credit information sharing plays a critical role in enhancing
credit to individuals and private enterprises. It enables credit providers to undertake effective
credit risk assessments based on available credit history, whereas the borrowers are able to
negotiate for better credit terms based on their good credit history. Therefore, initiatives such
as the NDSA and the Credit Bureau Regulations will greatly contribute to the realisation of
the NFSS objectives of enhancing access to finance and maintaining stability in the financial
system.
Director of ceremonies, ladies and gentlemen, the success of credit information sharing
require a broad range of credit providers actively supplying data to the credit information
system. It is thus important for all credit providers to take up membership with the NDSA and
be part of this exciting initiative. I therefore call upon credit providers to join the NDSA to
ensure the realisation of meaningful credit information sharing in Namibia.
In conclusion, I would like to commend FinMark Trust for initiating and facilitating this noble
project. This indeed demonstrates that you always stay true to your slogan of "making
financial markets work for the poor". All of us should be part of the solution of making credit
cheaper and more affordable, in a responsible fashion through credit information sharing.
The Bank of Namibia is proud to be associated with this project!
With these few remarks, Director of Ceremonies, Ladies and Gentlemen, it is my pleasure
to declare the Namibia Data Sharing Alliance officially launched.
Thank you for your kind attention.