Namibia bars foreign nationals from top bank jobs as Shafudah pushes 70% local leadership

The government has introduced regulations barring foreign nationals from top banking roles, including boards and chief executive officer (CEO) posts, to prioritise Namibians for senior positions in the sector.

Under the new citizenship and residency regulations published in the Government Gazette on 13 February, banks must ensure that at least 70% of their directors and CEO positions must be occupied by Namibians.

The regulations, issued by minister of finance Ericah Shafudah on the recommendation of the Bank of Namibia (BoN), note that institutions which fail to comply will face fines of up to N$100 000 or imprisonment.

The Gazette aims to restrict the appointment of foreign nationals unless proven skills are unavailable in Namibia.

“A banking institution, microfinance banking institution or controlling company must have a policy approved by the board of that institution or company that prioritises the appointment of Namibians as board of directors and executive officers of such institution or company,” the document says.

Shafudah, in the Gazette, says the board of directors and CEOs of a banking institution, microfinance banking institution or controlling company must consist of at least 70% of Namibians.

“In the event that there is no qualified Namibian to fill the position referred to in the subregulation, the banking institution, microfinance banking institution or controlling company may, subject to the provisions of regulation 5, appoint a foreign national for that position,” she said.

Economist Omu Kakujaha-Matundu says the regulations place strict conditions on the appointment of foreign nationals to boards and CEO positions in banks and microfinance institutions.

“Namibians need to sit at the economic table. The exclusion of Namibians from the main sectors of the economy has gone on for too long.

“It is time for capable Namibians to participate in the banking sector and by doing so, gain experience and set financial/economic policy.

These local executives shouldn’t be some window dressing, but “real” functionaries who set policy direction for the financial sector,” he says.

Kakujaha-Matundu says in ensuring that these regulations balance the development of local talent with the need for specialised skills from abroad, he says the remaining 30% will cater for external or expatriate expertise.

Speaking to The Namibian yesterday, accountant and business executive Ally Angula said the gazetted 70% should be higher.

“Given that banks are custodians of Namibian deposits and savings, I would argue that the 70% threshold is actually conservative.

It should be set even higher.

These institutions are built on the trust and money of ordinary Namibians, and leadership should reflect that reality,” she said.

She said Namibian executives understand the economy better than their foreign counterparts.

“My firm belief is that Namibian executives understand the Namibian economy far better than foreign counterparts whose primary obligation often lies with their holding companies – most of which are headquartered outside Namibia,this matters enormously when it comes to how capital is deployed,” she said.

Angula said a foreign executive team, however talented, may prioritise the liquidity and capital needs of an offshore parent company over local investment opportunities.

She added that the real risk is Namibian deposits and savings being channelled to develop economies elsewhere rather than our own.
“Raise the threshold from 70% to 99%.

One percent leaves room for genuinely scarce and specialised skills that do not yet exist locally, but the overwhelming majority of leadership in institutions holding Namibian deposits must be Namibian,” she said.

Angula recommended the BoN to publish transparent reporting on how banks are deploying local deposits into the domestic economy.

Finance ministry executive director Osacr Capelao told The Namibian yesterday the introduction of the new citizenship and residency requirements reflects the government’s commitment to strengthening Namibia’s financial sector by ensuring that leadership positions are firmly rooted in local expertise and accountability.

“While most banks are private entities, they operate as quasi-public institutions, funded in large parts by domestic public resources through savings and investment accounts.

Given their role in supplying credit to the economy, leadership in these institutions must be grounded in the local context to safeguard stability and garner public trust,” he said.

Capelao said the new regulations build on this by requiring that at least 70% of directors and CEOs be Namibian, and that key positions such as chairperson, principal officer, and chief financial officer be held exclusively by Namibians.

He said this ensures that critical decision-making roles remain aligned with national development priorities.

“The appointment of foreign nationals is not prohibited.

However, it is subject to approval by the BoN, and only where an institution can demonstrate that no suitably qualified Namibian candidate is available.

“In such cases, the foreign appointee must possess scarce or specialised skills essential to the institution’s operations.

This approach balances the protection of local opportunities with the recognition of international expertise where necessary,” he said.

Capelao said residency requirements for banking executives are consistent with global regulatory practice.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.