Africa-Press – Namibia. THE Namibia Financial Institutions Supervisory Authority (Namfisa) has listed rising activism, an unequal society and low financial literacy levels as threats that could torpedo its ability to remain a relevant regulator going forward.
These threats and more are included in its recently released five year strategic plan, for the period 2022 to 2027, which was launched last week.
The regulator, which oversees over 600 non-banking financial institutions with a total asset value in excess of N$340,8 billion, is headed by Kenneth Matomola, and is mandated to regulate and supervise non-banking financial institutions.
According to the strategic document, the period covered by the strategic plan will see the regulator embark on a reform journey, through modernising laws and regulations to keep the institution up to date.
The strategic document further covers how the institution will implement the Financial Institutions and Market Act (Fima) and Namfisa Act, as well as make the transition to becoming a risk-based supervisor.
At the launch of the strategic document, Matomola said there are three overarching themes that will drive the organisational strategy – stakeholder engagement, operational efficiency, and innovation.
The regulator has also updated its mission to include consumer protection and the promotion of a stable and fair non-banking financial sector.
Matomola, who was reappointed as the regulator’s chief executive last year, lists “perceived corruption” as one of its threats.
Other threats identified include lack of funds, political influence on policies, conflicting legislation, as well as the government’s policies not being conducive to economic growth.
In addition to identified threats, the strategic document further highlights that Namfisa has several weaknesses too – low staff morale, understaffing, unsustainable remuneration levels, low ownership of strategy, an authoritarian leadership style, as well as limited analytical skills.
In total, the institution has identified over 60 weaknesses. The many threats and weaknesses are matched to a rather thin list of strengths and opportunities. Coincidentally, there are fewer than 40 strengths and opportunities, respectively.
The strengths include a strong prudential supervision, relevant technical skills, a qualified and young staff complement and leadership support of the board, among others.
On opportunities, Namfisa listed a stable political environment, the ability and access to lobby the finance minister, as well as the support of the International Monetary Fund, among others.
FIMA
At the launch of the strategic plan, Matomola said Namfisa will provide feedback on the comments made on Fima, which will be given later during the year.
“As an update on Fima and the Namfisa Act 2021, the Namfisa Act and Fima will not be implemented on 1 October 2022 as it was planned. Instead, we will focus on having the amendments to the two acts passed by parliament. Namfisa will provide feedback on these comments during the last quarter of 2022,” said Matomola.
Should there be changes to the two legislative pieces, amendments to the acts will be made, and thereafter approved by parliament, and only then will the finance ministry provide direction on when the two laws will be operationalised.
Finance minister Iipumbu Shiimi postponed the two legislative pieces pending further consultations.
The full strategy is available on Namfisa’s website.
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