Banks fall short on Namibian ownership targets
No progress
Financial sector transformation stalls: Ownership and control key concerns
Nineteen years after the adoption of Namibia's financial services sector charter, the Bank of Namibia (BoN) has expressed concern over local banks' persistent failure to meet local ownership targets.
These findings were shared by BoN governor Johannes !Gawaxab, who said local ownership and control remained a challenge.
“The transformation assessment of Namibia’s financial sector revealed mixed progress across key pillars. Ownership and control remain a persistent challenge, with performance at just 20% against a 25% target,” !Gawaxab said during the launch of the Namibia Financial Sector Transformation Strategy for the years 2025 to 2035.
According to !Gawaxab, while the gap may appear modest, it represents the continued exclusion of thousands of Namibians from meaningful ownership in one of the economy’s most influential sectors.
“Management and control present a deeper concern, with only 30% progress toward a 50% target. This shortfall not only limits diversity in leadership but also undermines the sector’s ability to reflect the strategic insights and lived realities of Namibia’s diverse population,”!Gawaxab said.
Another area of concern was skills development which !Gawaxab said lagged furthest behind, achieving 35% against a 60% target.
“As one of the more attainable transformation goals, this 25-percentage point gap highlights a troubling lack of investment in talent development from historically disadvantaged groups,” he said.
On a positive note, !Gawaxab said preferential procurement had seen moderate progress at 27% of a 41% target, yet it remains an underutilised lever for inclusive growth.
“In contrast, enterprise and supplier development has been a standout success, surpassing its target by more than twentyfold. This exceptional performance underscores a critical truth: where commitment and accountability align, transformation is not only possible - it is powerful,” !Gawaxab said.
Reflecting on the overall economy, !Gawaxab described Namibia’s financial system as stable, sound, and modern, serving the formal and urban economy effectively.
“However, more must be done to deepen financial inclusion, particularly in the informal economy and in rural Namibia. The non-banking financial sector holds the majority of financial assets, and over the past three decades, the financial system’s depth, as measured by broad money (M2) and private sector credit relative to gross domestic product (GDP), has steadily increased. Notably, the scale of financial intermediation in Namibia is relatively high compared to many developing countries across the continent,” he said.
These findings were shared by BoN governor Johannes !Gawaxab, who said local ownership and control remained a challenge.
“The transformation assessment of Namibia’s financial sector revealed mixed progress across key pillars. Ownership and control remain a persistent challenge, with performance at just 20% against a 25% target,” !Gawaxab said during the launch of the Namibia Financial Sector Transformation Strategy for the years 2025 to 2035.
According to !Gawaxab, while the gap may appear modest, it represents the continued exclusion of thousands of Namibians from meaningful ownership in one of the economy’s most influential sectors.
“Management and control present a deeper concern, with only 30% progress toward a 50% target. This shortfall not only limits diversity in leadership but also undermines the sector’s ability to reflect the strategic insights and lived realities of Namibia’s diverse population,”!Gawaxab said.
Another area of concern was skills development which !Gawaxab said lagged furthest behind, achieving 35% against a 60% target.
“As one of the more attainable transformation goals, this 25-percentage point gap highlights a troubling lack of investment in talent development from historically disadvantaged groups,” he said.
On a positive note, !Gawaxab said preferential procurement had seen moderate progress at 27% of a 41% target, yet it remains an underutilised lever for inclusive growth.
“In contrast, enterprise and supplier development has been a standout success, surpassing its target by more than twentyfold. This exceptional performance underscores a critical truth: where commitment and accountability align, transformation is not only possible - it is powerful,” !Gawaxab said.
Reflecting on the overall economy, !Gawaxab described Namibia’s financial system as stable, sound, and modern, serving the formal and urban economy effectively.
“However, more must be done to deepen financial inclusion, particularly in the informal economy and in rural Namibia. The non-banking financial sector holds the majority of financial assets, and over the past three decades, the financial system’s depth, as measured by broad money (M2) and private sector credit relative to gross domestic product (GDP), has steadily increased. Notably, the scale of financial intermediation in Namibia is relatively high compared to many developing countries across the continent,” he said.
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