The country’s first e-money system is set to be launched later this year, eliminating cash payouts for social grants over time.
Finance minister Ericah Shafudah during her budget speech on Thursday said the government will transition from cash disbursements to an instant payment system.
“This initiative will facilitate quick, secure government payments, reducing travel distances and queues for pensioners,” she said.
Instant Payments Namibia (IPN), the subsidiary of the Bank of Namibia that is developing the new payment system, says it welcomes the minister’s support.
“The solution is expected to significantly enhance financial inclusion and deepen access to finance through strategic regulatory interventions,” IPN chief operating officer Marsorry Ickua says in a media statement released on Friday.
Development of the initiative began in 2024. The Bank of Namibia confirmed last week that the integration of the e-money system has been tested with banking systems, and that user acceptance testing is currently underway.
After pilot testing is complete, IPN will begin to enrol cash grant beneficiaries to allow the government to disburse grants directly into their accounts or e-wallets.
Bank of Namibia governor Ebson Uanguta says the new system is a meaningful step for financial inclusion.
“With this initiative, we aim to improve the lives of Namibians and offer more convenient, affordable financial services beyond costly brick-and-mortar means. We will roll out a national digital literacy campaign accompanied by roadshows and stakeholder engagements to ensure our people understand the new solution effectively,” he says.
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