Namibians borrowed N$7,2 billion from microlenders during the first quarter of this year.
This involves growth of 0,2% quarter on quarter and 7,9% year on year.
According to the Namibia Financial Institutions Supervisory Authority (Namfisa) quarterly review, term lender loans continued to dominate, with a slight quarter-on-quarter decline of 0,7% and a year-on-year rise of 7%, reaching N$6,8 billion.
Term lenders’ loans constituted 95% of the total share.
However, consumers of financial services were awarded more than N$5,8 million in refunds as Namfisa received fewer complaints during the first quarter of 2024.
According to the review, the consumer complaints department received 137 grievances during the quarter.
“This reflects a decrease of 10,5% from the previous quarter and 6,8% compared to the same quarter last year. The department resolved 65,7% of the complaints and consumers were awarded a total of N$5 888 497 from financial institutions,” the review says.
The review says the non-banking financial institutions sector grew by 2,9% quarterly and by 11,8% annually, reaching about N$427 billion by the end of the first quarter of 2024.
In the first quarter of 2024, the long-term insurance industry assets experienced a slight growth, which was primarily influenced by fluctuations in financial markets driven by investor sentiment.
“As of 31 March 2024, the industry’s assets decreased by 0,1% quarterly, but grew by 3,2% annually, reaching N$10,5 billion as at 31 March 2024,” Namfisa says.
The short-term insurance industry assets demonstrated a quarter-on-quarter growth and a year-on-year growth as at 31 March.
Namfisa says the medical aid fund industry’s assets grew by 4,1% from the previous quarter and by 8,6% on an annual basis to N$2,2 billion by 31 March.
“This increase is due to new investments being made with surplus available cash owing to the industry’s higher contributions and lower non-healthcare expenses reported for the quarter under review,” Namfisa says.
According to the report, the total retirement fund investments (including insurance policies) increased by 1,3% quarter-on-quarter, and by 10,1% year on year to N$238,9 billion by 31 March.
Investments held in insurance policies amounted to 11,3% of the industry’s total investments.
The friendly society assets increased by 2,7% quarter on quarter and by 10,1% year on year to N$2,6 million as at 31 March.
The investment managers’ assets under management experienced a moderate increase of 0,6% quarter on quarter and an increase of 11,2% year on year to N$253 billion during this time.
“The growth in assets under management can be attributed to new inflows of capital from investors coupled with interest earned and dividend income generated from existing investments,” Namfisa says.
The report says collective investment schemes (CIS) assets stood at N$91,7 billion, reflecting an increase of 2,9% quarter on quarter and a 14,6% gain year on year.
“The increase in assets under management can be attributed to interest income, dividends received from underlying holdings and new investments from clients. Companies and households continue to be the primary source of funds for CIS,” the review says. – email: matthew@namibian.com.na
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
