Pension funds dominate non-bank financial sector

Pension funds continue to dominate Namibia’s other (non-bank) financial corporations (OFCs) sector, accounting for N$172.4 billion of net household equity at the end of the second quarter of 2025 (2Q2025), according to the Bank of Namibia (BoN).

The central bank reported that the total asset value of OFCs declined to N$185 billion at the end of June 2025, down from N$268.1 billion recorded in the first quarter. Life insurance funds, meanwhile, held N$36.7 billion in household equity.

“The absolute size of the pension funds continued to dominate the OFCs sector with N$172.4 billion of net equity of households. In comparison, N$36.7 billion was the net equity of households in life assurance at the end of the 2Q2025,” the report notes.

Despite the decline in total assets, the net foreign assets of OFCs rose sharply to N$119.8 billion in June 2025 from N$91.8 billion in the previous quarter.

The increase lifted the total net foreign assets for all financial corporations to N$203.9 billion, underscoring the growing cross-border exposure and investment role of non-banking institutions in Namibia’s financial system.

“The net foreign assets of OFCs rose at the end of June 2025. The net foreign assets value of OFCs stood at N$119.8 billion at the end of the 2Q2025, higher than the N$91.8 billion registered at the end of the preceding quarter,” the report reads.

Investment patterns remained stable, with equities continuing to attract the largest share of OFC funds. During the period, 53.1% of total assets were invested in equities, followed by interest-bearing securities (31.3%), other assets (9.1%), and cash and deposits (6.6%).

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