Namfisa assures no levy increases despite FIMA implementation

The Namibia Financial Institutions Supervisory Authority (Namfisa) has assured the financial sector that the upcoming Financial Institutions Markets Act (FIMA) will not trigger increases in regulatory levies, as these costs have already been factored into the regulator’s strategic planning.Speaking at the launch of Namfisa’s annual report for the financial year ended 31 March 2025, chief executive Kenneth Matomola emphasised that the authority’s five-year strategic approach to levy setting ensures stability for regulated entities. “Whenever we have a new strategy, we cost the strategy and then look at how we are going to fund it. Therefore, if FIMA is implemented tomorrow, there will be no changes to the levy because our strategy has already factored in the implementation of FIMA,” Matomola said.The CEO explained that Namfisa’s levy-setting mechanism is designed to maintain predictability over five-year strategic periods. “Our levy setting is fixed for five years in terms of a strategic period. So we do not foresee any increase in the levies,” he said.Matomola noted that while some levies are percentage-based and may see nominal increases as institutional assets grow, FIMA will also bring new entities under Namfisa’s regulatory umbrella, which will contribute to the levy pool.“FIMA will also bring in new entities that we shall regulate, who will also be subjected to the same levies that other entities are currently paying. Therefore, we do not foresee the burden of levies on existing entities increasing,” he said.The annual report launch showcased robust sector performance and strengthened regulatory oversight. Matomola emphasised that Namfisa’s successful execution of its mandate is anchored in sound corporate governance, effective risk management, and meaningful stakeholder engagement.The regulator has made significant progress in enhancing its Risk-Based Supervision (RBS) Framework. By adopting predictive, data-driven tools and advanced regulatory models, Namfisa has improved its capacity to assess risk profiles across regulated entities.“These improvements enable us to intervene more effectively and with greater precision, reinforcing consumer protection and ensuring the integrity of Namibia’s financial system,” Matomola said.The authority has also strengthened internal monitoring mechanisms, scenario planning, and stress testing to identify potential vulnerabilities early and respond swiftly to emerging risks.“We are supporting the adoption of FinTech and digital transformation, which are essential to improving efficiency, inclusivity, and consumer-centric solutions,” Matomola added.The non-bank financial institutions (NBFI) sector demonstrated resilience, with aggregate assets rising by 14.3% to N$474.1 billion in 2024. Namfisa regulates 1 032 financial institutions and 14,701 financial intermediaries.

Namfisa assures no levy increases despite FIMA implementation

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Republikein 2025-11-28

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Namfisa assures no levy increases despite FIMA implementation

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