The Minister of Finance, Hon.Ericah Shafudah, officially launched the Financial Institutions Markets Act of 2021 (FIMA) on Wednesday, signalling a shift in how the country’s non-banking sector is governed.
FIMA replaces outdated legislation, such as the Public Accountants and Auditors Act of 1951, with a single, robust framework designed to strengthen consumer protection, promote financial stability, and ensure fair markets.
According to the Namibia Financial Institutions Supervisory Authority (NAMFISA), Chief Executive Kenneth Matomola, the decision to transition to FIMA was made in 2008 following concerns raised by various stakeholders, including the International Monetary Fund, World Bank, and the local Parliament, about the ineffectiveness of regulation and supervision in the country’s financial sector.
The first draft Bill was followed by years of engagement with the Cabinet Committee on Legislation, the Ministry of Justice, and the Ministry of Finance. The Bill was passed in the national assembly in 2020 and promulgated in 2021. However, critical supplementary standards and regulations were still issued for formal consultations, which formally concluded in 2025. The Bill was gazetted and became operational on 1 May.
Minister Shafudah said FIMA gives practical effect to the priorities set out in the National Development Plans, particularly economic transformation and diversification, financial sector stability and integrity, inclusive growth, shared prosperity, and good governance underpinned by strong public institutions.
The 154 regulations and standards, drafted in conjunction with the Ministry of Finance, supervises insurance companies, agents and brokers (Chapter 2); financial markets (Chapter 3); collective investment schemes (Chapter 4); retirement funds (Chapter 5); friendly societies (Chapter 6); medical aid funds (Chapter 7); fund and society administrators (Chapter 8); property held and in trust (Chapter 9); and general provision (Chapter 10).
“This modernised legal framework strengthens regulatory certainty, enhances supervisory effectiveness, aligns Namibia with international best practices, and ensures resilience in the face of emerging risks. It equips our regulators with the tools they need to safeguard the financial system, while creating conditions in which innovation and growth can flourish,” said Shafudah.
The Shafudah also addressed the concerns raised regarding the proposed preservation of retirement savings regulation, which currently remains unchanged.
“In response to those concerns, the government did what any responsive Government ought to do: it listened, and it consulted. A comprehensive, joint public consultation process was therefore convened, bringing together organised labour, the Ministry of Finance, the Bank of Namibia, NAMFISA, and the pension industry. This was not a consultation of convenience. It was a deliberate, structured engagement designed to ensure that every voice could be heard.
She further urged collaboration among industry stakeholders and NAMFISA to ensure the successful implementation of FIMA. She also urged all organised labour and the pension industry to continue engaging with the government and NAMFISA.
: Minister of Finance, Hon. Ericah Shafudah; (middle left) NAMFISA Board Chairman Brian Masule; (middle right) NAMFISA Chief Executive, Kenneth Matomola, and NAMFISA Vice Board Chairperson Selma Ambunda; standing with NAMFISA Board members.
