Fintech will drive jobs, economic growth – Namfisa

The Namibia Financial Institutions Supervisory Authority (Namfisa) says financial technology (fintech) could become a key driver of economic growth, job creation and financial inclusion as the country begins implementing a new regulatory framework for the financial sector.

The regulator said the Financial Institutions and Markets Act (FIMA) and the new Namfisa Act, which came into operation on 1 May this year, have created an opportunity to build a stronger financial system that supports innovation while protecting consumers.

Namfisa CEO Kenneth Matomola said the focus should no longer be on whether technology will change the financial sector but on ensuring innovation benefits businesses, consumers and the wider economy.

“The question is no longer whether technology will transform financial services because it already is. The question is how we ensure innovation takes place responsibly, inclusively and sustainably while creating meaningful opportunities for Namibian businesses, consumers and young innovators,” he said.

Matomola said fintech should not be viewed only as technology for the financial sector but as an economic development tool that can help improve access to finance, support entrepreneurship and create employment.

He said digital financial services are changing how people make payments, borrow money, buy insurance, save, invest and conduct business.

According to Matomola, regulation, collaboration and capital will be key to growing Namibia’s fintech sector. He said regulation builds confidence in the financial system, collaboration brings together regulators, government, investors and businesses, while capital allows innovative ideas to become sustainable businesses.

Matomola said fintech can also help address some of Namibia’s biggest economic challenges, particularly youth unemployment.

He referred to the Namibia Statistics Agency’s 2023 Labour Force Report, which found that youth unemployment stood at 44.4%, while 41.9% of young people aged between 15 and 34 were not in employment, education or training.

“We must ask how we create an environment where young Namibians can create businesses, access capital, develop solutions and create employment for others. This is where fintech can play a strategic role,” he said.

He said digital lending can improve access to finance for small businesses, while insurance technology can make insurance more accessible to farmers, informal businesses and households.

He added that digital investment platforms can make it easier for more Namibians to save and invest, while artificial intelligence and data analytics can strengthen decision-making and risk management across the financial sector.

“Our ambition should therefore be to move beyond viewing young people primarily as job seekers and enable them to become innovators, entrepreneurs, technology developers and job creators,” Matomola said.

Additionally, Namfisa’s general manager for research, policy and statistics Abel Sindano said technological innovation is reshaping the financial services industry and creating new opportunities to improve financial inclusion and economic growth.

He said these developments also require close cooperation between regulators, industry players, investors and policymakers to ensure innovation remains responsible and benefits consumers.Sindano said FinTech Square has grown since it was launched in 2022 from an awareness campaign into a platform where regulators, innovators, businesses and investors discuss the future of financial services and explore practical solutions for the sector.

This year’s FinTech Square conference will take place on 14 October in Windhoek under the theme ‘Innovating Under a New Dawn: Regulation, Collaboration and Capital for Namibia’s FinTech Future’. The event is expected to bring together local, regional and international experts to discuss financial innovation, regulation and investment opportunities.

Matomola encouraged entrepreneurs, innovators and investors to use the platform to engage with regulators and help build a stronger fintech ecosystem that supports business growth, expands financial inclusion and creates jobs.

–pmukokobi@nepc.com.na

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