Namibians owe loan sharks N$7.2b

The Namibia Financial Institutions Supervisory Authority (Namfisa) says individuals in the country owe microlenders N$7.2 billion.

In a presentation during the release of the company’s annual results last week, Namfisa chief executive Kenneth Matomola said 221 841 people borrowed money from microlenders in 2023.

“The outstanding value of the loan book grew by 6.1%, reaching N$7.2 billion as of the end of 2023,” he said.

According to Matomola, the majority of these were made by term lenders (N$6.9 billion).

A term loan is a monetary loan that is repaid in regular payments over a set period of time.

Matomola said non-banking financial institution (NBFI) assets grew to N$414.8 billion.

NBFIs are financial companies that provide various financial services, but do not have a full banking licence.

“The demand for NBFI products stayed strong throughout 2023,” said Matomola.

He added that the number of entities under Namfisa increased to 788 from 649 with 13 605 financial intermediaries.

“Namfisa supervises and regulates the business of financial institutions and financial service providers, and advises the minister of finance and public enterprises on matters relating to financial institutions and financial service providers,” said Matomola.

NBFIs include investment banks, hedge funds, insurance companies, mortgage lenders and microfinance institutions or cash loans.

In the company’s annual results, Matomola said the authority paid out N$14.7 million to 172 complainants in 2023.

This comes from it resolving 627 out of 691 complaints last year.

Matomola said for the year ended 31 March 2024, Namfisa and its subsidiary, Metropol, had a total income of N$279.5 million, with total expenditure amounting to N$254.7 million.

Other comprehensive income amounted to N$12.8 million, resulting in a total surplus of N$37.7 million, compared to a budget deficit of N$16.6 million.