Namibia: lending & credit regulation

Who regulates

• Bank of Namibia

  Primary supervisor for banking institutions, including microfinance banking institutions; sets prudential standards.

  ^{[1][2][3][4][5][6][7]}

• Namibia Financial Institutions Supervisory Authority (NAMFISA)

  Supervises non-bank financial institutions, including microlenders, friendly societies, and credit bureaus; leads the Consumer Credit Bill process.

  ^{[8][9][10][11][12][13][14][6][15][16][17]}

Core laws & rules

• Banking Institutions Act (2023)

  Provides the primary legal framework for the regulation of banking institutions, including capital adequacy, asset classification, and provisioning standards.

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• Microlending Act (2018)

  Regulates microlending businesses, requiring registration with NAMFISA and establishing enforcement frameworks for non-bank credit providers.

  ^[16][17]

• Consumer Credit Bill (2025 (Draft))

  A final draft bill introduced to consolidate credit legislation, establish a Consumer Credit Regulator, and mandate registration for all credit providers, bureaus, and debt collectors.

  ^{[8][10][11][14]}

• Usury Act (1968)

  Limits maximum annual finance charge rates and mandates disclosure of charges in debt instruments.

  ^[18]

• Credit Agreements Act (1980)

  Regulates credit transactions for movable goods or services, mandating written agreements and invalidating unfair clauses.

Licensing & registration

• Banking Institutions

  Authorization required for commercial and microfinance banking institutions; subject to BoN prudential standards. Capital: N$22.5 million (minimum core capital for microfinance banking institutions)

  ^[3]

• Microlenders

  Mandatory registration with NAMFISA under the Microlending Act, 2018.

  ^[17]

• Credit Providers (General)

  Under the proposed Consumer Credit Bill, all credit providers will be required to register with the new Consumer Credit Regulator. Timeline: Pending enactment of CCB

  ^[11][14]

Restrictions & warnings

• Loan-to-value (LTV) caps are imposed on mortgage loans: 90% for second properties and 80% for third or subsequent properties.

• Single borrower exposures are capped at 25% of capital funds, and aggregate large exposures at 800% of capital funds.

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• Loans secured by first mortgages on immovable property by Friendly Societies must not exceed 75% of the fair value of the property.

  ^[15]

• Usury Act limits maximum annual finance charge rates; Credit Agreements Act invalidates unfair clauses restricting consumer rights.

  ^[18]

Direction of travel

• The Consumer Credit Bill is in its final draft stage, signaling a move towards a consolidated regulatory framework with a dedicated Consumer Credit Regulator.

  ^[10][11]

• Regulators are emphasizing early warning systems and prompt corrective action to enhance financial stability and risk management.

  ^[2]

Sources

1. Bank of Namibia Banking Circular 2/95: Classification of Outstanding Credit to the Private Sector by Industry · 2026-05-22
2. Circular on Early Warning System and Prompt Corrective Action · 2025-10-07
3. Bank of Namibia Determination on Microfinance Banking Institutions · 2024-08-20
4. Bank of Namibia Determinations on Asset Classification, Suspension of Interest and Provisioning · 2024-04-05
5. Bank of Namibia Determination on Drought Relief Policy Changes · 2024-10-23
6. Formal Consultation on the Proposed Draft Consumer Credit Bill · 2023-03-12
7. Determination on Limits on Exposures to Single Borrowers, Large Exposures and Concentration Risk (BID-4) · 2019-03-14
8. Second Call for Public Input on the Consumer Credit Bill (CCB) · 2026-02-12
9. Consumer Credit Bill (CCB) Comments Template – Due 13 March 2026 · 2026-02-10
10. Consumer Credit Bill (CCB) Status Update · 2025-10-31
11. Consumer Credit Bill (CCB) Draft October 2025 · 2025-10-31
12. Consumer Credit Bill (CCB) Summary of Comments October 2025 · 2025-10-31
13. Consumer Credit Bill Template (CCB) · 2023-05-12
14. Consumer Credit Bill (Fourth Draft) · 2023-05-12
15. FS.S.6.13 – The Percentage of the Fair Value of Property · 2021-11-11
16. Regulations on Penalties for Non-Compliance with the Microlending Act, 2018 · 2021-01-25
17. Microlending Act, 2018 · 2019-10-22
18. Usury Act 73 of 1968 · 2017-03-28