Report Coverage
This report on financial services in Namibia includes information on the size and state of the industry such as the assets and size and performance of the big banks, the value of transactions, returns, branches and ATMs. The report includes information on notable players and developments, and influencing factors such as environmental issues, government support, and oil and gas discoveries. While focusing on commercial banks, the report includes information on microfinance institutions, e-money services and fintech. There are profiles of 17 companies such as the major South African-owned Standard Bank, Nedbank and FNB, local banks Windhoek and Letshego, and state-owned Development Bank of Namibia, and NamPost Financial Brokers (PostFin).
Introduction
• Banking assets are concentrated in four major banks, three of which are subsidiaries of South African banks.
• The sector is uncompetitive, stable, resilient, well-capitalised and profitable, with well-regulated and developed systems.
• Key issues include rising operational costs, high non-performing loans, climate change risks, reliance on wholesale funding from non-bank institutions, a widening credit gap, and digital skills shortages.
• The banking industry is expected to play a significant role providing products and services aligned with the oil and gas sector, as oil and gas discoveries are expected to attract new investments.
Trends
• Banks are increasing investments in digital platforms to offer a broader range of services and reach customers more effectively.
• Banks continue to rely heavily on wholesale funding from non-bank financial institutions.
• Financial indicators such as banking assets, loans and advances indicate a growing and expanding financial sector.
• Financial services players are under pressure from established competitors and new entrants that include startups that use innovative technologies to offer products and services at lower prices.
• Growing collaboration between fintechs and traditional banks.
• Growth in new microfinance entrants.
• Large banks are profitable, driven by increases in net interest income and operating income.
• Loans and advances are driven by high demand for mortgage loans.
• Plans at an advanced stage to introduce open banking services.
• Reasonably strong credit appetite with the growth of key economic sectors and the rise of the Namibian energy sector.
• The discovery of oil and gas is expected to attract investments, with banks playing a significant role in designing products and services that will align with the needs of this segment.
• The repo rate has continued to be reduced downwards.
• The value of transactions has continued to grow, driven by card transactions.
Opportunities
• Accelerated digitalisation opens new opportunities for innovative new digital products, online payments and e-money services.
• Financial services for the unbanked and underserved low income groups particularly rural communities.
• Opportunities for training digital skills and educational financial literacy programmes.
• Provision of funding for sustainable development projects.
• The discovery of oil and gas is expected to increase the demand for innovative banking products and services aligned to the energy sector.
• Unmet demand for funding SMEs.
• With increasing regulations there is need for professionals with expertise in compliance, cybersecurity, anti-money laundering and financial crime prevention.
Challenges
• Accelerated digitisation has introduced new cybersecurity threats.
• Access to funding remains a challenge to the urban poor, rural committees and working capital for SMEs, leading to a widening credit gap.
• Concentration of banking assets in four large banks and the reliance on mortgages exposes the banking sector to potential credit risks.
• High operating costs restrict profit growth.
• Many SMEs operate informally, making it difficult to assess their creditworthiness and hindering access to formal finance.
• Namibia is susceptible to climate shocks that affect farmers, households, and business that rely on earnings from agriculture activities, affecting banking sector revenues and loan defaults.
• Shortages of specialised skills in data analytics, fintech, and cybersecurity.
• Subsidiaries of South African banks hold the majority of banking assets, so any potential risk from the parent companies or economic shocks in South Africa will spill over into the Namibian banking sector.
• The banking sector lacks sufficient local ownership.
• The microlending sector is fragmented and reliant on salaried clients, resulting in high unmet demand for SME funding.
• Uncompetitive nature and behaviour of the banking sector is skewed towards serving large companies than extending more services to entrepreneurs and SMEs.
Outlook
• Traditional banking will continue to dominate, while digital banking will make inroads.
• The economic outlook for 2025 is positive, and corporate tax reductions will be positive for the banking sector.
• The banking sector could benefit from government spending on infrastructure development and investment in the oil and gas industry.
• Lower diamond revenues and potential trade disruptions pose significant challenges to the economy.
• Non-performing loans are likely to remain elevated, with banks taking a cautious lending approach.
• Microfinance is expected to grow.
• Barriers to access finance by SMEs will remain a key challenge.
Financial Services in Namibia
2025
Full Report
R 20 000.00(ZAR) estimated $1181.60 (USD)*
Industry Landscape
R 14 000.00(ZAR) estimated $ 827.12 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY PROFILE | 1 |
| 3. | DESCRIPTION OF THE INDUSTRY | 3 |
| 3.1. | Value Chain | 8 |
| 3.2. | Geographic Position | 9 |
| 3.3. | Size of the Industry | 9 |
| 4. | LOCAL | 13 |
| 4.1. | State of the Industry | 13 |
| 4.2. | Key Trends | 23 |
| 4.3. | Key Issues | 23 |
| 4.4. | Notable Players | 24 |
| 4.5. | Corporate Actions | 30 |
| 4.6. | Regulations | 30 |
| 4.7. | Enterprise Development and Social Development | 31 |
| 5. | AFRICA | 32 |
| 6. | INTERNATIONAL | 36 |
| 7. | INFLUENCING FACTORS | 38 |
| 7.1. | Unforeseen Events | 38 |
| 7.2. | Economic Environment | 38 |
| 7.3. | Labour | 41 |
| 7.4. | Environmental Issues | 42 |
| 7.5. | Technology, R&D, Innovation | 43 |
| 7.6. | Government Support | 44 |
| 7.7. | Cybersecurity and Fraud | 45 |
| 7.8. | Oil and Gas Discoveries | 46 |
| 7.9. | Input Costs | 47 |
| 8. | COMPETITIVE ENVIRONMENT | 48 |
| 8.1. | Competition | 48 |
| 8.2. | Ownership Structure of the Industry | 48 |
| 8.3. | Barriers to Entry | 48 |
| 9. | INDUSTRY SUMMARY | 49 |
| 10. | OUTLOOK | 50 |
| 11. | INDUSTRY ASSOCIATIONS | 51 |
| REFERENCES | 51 | |
| 11.1. | Publications | 51 |
| 11.2. | Websites | 52 |
| ANNEXURE 1 | 53 | |
| Relevant Legislation | 53 | |
| APPENDIX 1 | 54 | |
| Summary of Notable Players | 54 | |
| COMPANY PROFILES | 57 | |
| BANCO ATLANTICO EUROPA, S.A. | 57 | |
| BANK BIC NAMIBIA LTD | 59 | |
| BANK OF NAMIBIA | 61 | |
| BANK WINDHOEK LTD | 64 | |
| DEVELOPMENT BANK OF NAMIBIA LTD | 67 | |
| EXPRESS CREDIT CASH ADVANCE (PTY) LTD | 70 | |
| FIRST NATIONAL BANK OF NAMIBIA LTD | 73 | |
| KONGA MICROFINANCE (PTY) LTD | 77 | |
| LETSHEGO BANK (NAMIBIA) LTD | 79 | |
| LETSHEGO HOLDINGS (NAMIBIA) LTD | 82 | |
| NAM-MIC FINANCIAL SERVICES HOLDINGS (PTY) LTD | 85 | |
| NAMIBIA PUBLIC SERVICE SAVINGS AND CREDIT CO-OPERATIVE | 87 | |
| NAMPOST FINANCIAL BROKERS (PTY) LTD | 89 | |
| NEDBANK NAMIBIA LTD | 91 | |
| NICTUS HOLDINGS LTD | 95 | |
| STANDARD BANK NAMIBIA LTD | 97 |
