Namfisa and SA’s MFRC sign MoU

THE Namibia Financial Institutions Supervisory Authority (Namfisa) and the Micro Finance Regulatory Council (MFRC) of South Africa have signed a memorandum of understanding that will facilitate co-operation and exchange of information between the two organisations.

The MoU would also enable Namfisa to immediately report issues of South African micro-lending firms conducting unauthorised business in Namibia, so that MFRC can take legal action. The signing of the MoU was initiated after recent developments within the local micro-lending market, in which bogus foreign firms were soliciting business in Namibia.Recently a South African company called Silver Lining Financial Brokers was involved in a scam whereby unsuspecting Namibian borrowers were lured into promising loan schemes after payment of a non-refundable “subscription fee”.With the signing of the MoU, this would afford Namfisa the opportunity to deal with such issues in a prompt and efficient manner, with the least cause for panic nor harm to the locals.Addressing the gathering Namfisa’s General Manager: Investment Institutions, Boni Paulino said the MoU would not only enhance mutual co-operation between the two authorities, but would also improve effectiveness in administering and enforcing the micro-lending laws.”The MoU would also promote the integrity, stability and efficiency of the micro-lending industry, by providing a framework for increased mutual understanding, the exchange of information and assistance to the extent permitted by laws, regulations and requirements,” said Paulino.The MoU was signed between the Namfisa’s chief executive officer, Frans van Rensburg and MFRC CEO Gabriel Davel and MFRC chairman Mutle Mogase.Mogase said the MoU when implemented had the ability to protect the clients without stifling the market.To date, Namfisa has signed similar agreements with the Financial Services Commission of South Africa, Financial Services Commission of Mauritius, the Bank of Namibia and with CISNA – which groups 14 SADC countries.The signing of the MoU was initiated after recent developments within the local micro-lending market, in which bogus foreign firms were soliciting business in Namibia.Recently a South African company called Silver Lining Financial Brokers was involved in a scam whereby unsuspecting Namibian borrowers were lured into promising loan schemes after payment of a non-refundable “subscription fee”.With the signing of the MoU, this would afford Namfisa the opportunity to deal with such issues in a prompt and efficient manner, with the least cause for panic nor harm to the locals.Addressing the gathering Namfisa’s General Manager: Investment Institutions, Boni Paulino said the MoU would not only enhance mutual co-operation between the two authorities, but would also improve effectiveness in administering and enforcing the micro-lending laws.”The MoU would also promote the integrity, stability and efficiency of the micro-lending industry, by providing a framework for increased mutual understanding, the exchange of information and assistance to the extent permitted by laws, regulations and requirements,” said Paulino.The MoU was signed between the Namfisa’s chief executive officer, Frans van Rensburg and MFRC CEO Gabriel Davel and MFRC chairman Mutle Mogase.Mogase said the MoU when implemented had the ability to protect the clients without stifling the market.To date, Namfisa has signed similar agreements with the Financial Services Commission of South Africa, Financial Services Commission of Mauritius, the Bank of Namibia and with CISNA – which groups 14 SADC countries.