Namibia: Financial Exclusion Still a Major Barrier in Namibia - BoN

The Bank of Namibia has identified limited access to formal financial infrastructure and low levels of financial literacy as the main barriers preventing many Namibians from participating in the financial system.

To address these challenges, the bank has launched a month-long financial inclusion awareness campaign aimed at raising awareness, improving financial education and strengthening consumer protection across the country.

Deputy governor Ebson Uanguta says despite progress in expanding access to services, financial exclusion remains a serious concern.

"True monetary stability cannot exist without meaningful economic participation by all our citizens. Financial exclusion remains a significant challenge in Namibia, as limited access to formal financial services at an affordable cost continues to prevent a large portion of our population from fully participating in the economy," says Uanguta.

The campaign will focus on three core pillars: access, financial literacy and consumer protection.

Uanguta emphasises that access to financial services must go beyond the mere opening of bank accounts and instead enable genuine economic participation.

He notes that physical and digital barriers, low financial literacy and weak consumer protection mechanisms continue to sideline low-income households, informal traders and vulnerable communities.

"We can be proud of the progress we've made - 78% of adult Namibians now have access to some form of financial service. But statistics alone do not tell the full story. Behind each percentage point are real people: entrepreneurs, farmers, students, pensioners - many still constrained by barriers we have the power to remove," he says. 

Among the initiatives being introduced is a digital financial literacy booklet, which aims to equip Namibians with the knowledge and skills needed to navigate an increasingly digital financial environment.

Uanguta also highlights regulatory reforms currently under way, such as the development of an instant payment system to enable faster and safer transactions across all platforms.

"This system will create faster, safer and interoperable payment infrastructure, ensuring that financial services are efficient, inclusive, and built around the rights of consumers," he says.

He calls on stakeholders across government, the private sector and civil society to collaborate in tackling financial exclusion, stressing that national ownership was essential.

"The success of the campaign hinges on national ownership, with every sector expected to play a role in making financial inclusion a lived reality rather than a policy aspiration," says Uanguta.

He further encourages public scrutiny and constructive engagement to strengthen accountability.

"We encourage investigative reporting that examines both our successes, shortcomings and challenges. We welcome questions that challenge us to do better and to move faster. This transparency and accountability are essential to maintaining public trust and ensuring that our efforts remain focused on real impact rather than mere statistics," he says.

The campaign comes as Namibia prepares to host the Alliance for Financial Inclusion Global Policy Forum at Swakopmund.

Source: All Africa