Namibia no longer beset by a large ‘unbanked’ population
Despite very high unemployment, more than half the Namibian population has access to banking services in one way or another. According to the latest banking report from the Bankers Association of Namibia (BAN), of the working age population between 15 and 59 years, the majority makes use of banking, and is included in the “banked” statistics.
As of December 2023, approximately 1.7 million Namibian consumers were served by about 216 bank branches and agencies across seven different brands. When comparing these numbers to the 2023 census data it shows a positive picture of financial inclusion.
With a market capitalisation exceeding N$20 billion and a staggering N$170 billion in assets, the banking sector stands as a significant pillar of Namibia’s economy.
The numbers indicate a promising shift to increased financial inclusion driven mainly through digitisation, setting Namibia apart as a beacon of progress in the African banking landscape.
Digital accessibility
There are about 20,669 point of sale devices peppered across the country, offering convenient payment options for consumers far and wide. Additionally, there are approximately 1,300 ATMs, providing easy access to banking services. A trend in e-Channels is on the uptick, with about N$67 billion sent in e-Wallets for the period ended December 23. These widespread facilities contribute to the accessibility and efficiency of financial transactions for all Namibians, especially those in remote areas of the country. Collectively the banks of Namibia advanced its citizens N$108 billion in loans as of December 2023.
Employers of choice
Currently the banking sector employs more than 6000 people of which 5376 are previously disadvantaged. Of these 63% are female and 37% male. The average salary bill across five of the polled banks is N$1,842 billion of which an employee tax amount is about N$500million. To its shareholders, banks paid dividends in 2023 of about N$1,1billion.
Banks as corporate citizens
Banks are key to channelling funds into public services and infrastructure that benefit communities at large. For the tax period 2020-2023, the banking sector contributed about N$7,5 billion in taxes, with an average per annum amount of about N$1,9 billion. For the same period the sector’s corporate social responsibility contribution was N$123 million with an average per annum amount of N$30million. Often overlooked as significant taxpayers who uphold ethical standards, their contribution provides resources for investment in areas that stimulate economic activity and job creation.
The multifaceted roles that banks play in Namibian society extend far beyond their traditional financial functions. Collectively, they serve as integral pillars of society, enabling economic progress, social responsibility, and the realisation of dreams for individuals and communities alike.
