Namibia's non-bank financial institutions (NBFI) sector has demonstrated resilience and expansion, with total assets increasing to N$577.2 billion in the second quarter. This represents a 15.1% year-on-year and 4.2% quarter-on-quarter growth. Favourable financial market conditions and sustained demand for non-bank financial products supported this growth. The sector's performance indicates a positive trend in Namibia's financial landscape.
The NBFI sector is dominated by pension funds, long-term insurers, and collective investment schemes, which account for 90% of total assets. According to the Namibia Financial Institutions Supervisory Authority (Namfisa), these industries continued to drive the sector's growth. Long-term insurance industry assets grew 2.2% quarter-on-quarter and 9.5% year-on-year to N$97.4 billion. This growth was supported by improved investment performance and market recovery.
The short-term insurance industry also recorded significant growth, with assets increasing 4.2% quarter-on-quarter and 17.6% year-on-year to N$11.4 billion. Favourable investment performance and continued industry expansion drove this growth. Medical aid funds maintained adequate reserves and asset coverage of liabilities, recording a surplus of N$178.8 million. Membership grew 0.8% quarter-on-quarter and 2.1% year-on-year to 226,777 beneficiaries.
The retirement funds industry maintained a strong financial position, with investment assets growing 5.0% quarter-on-quarter and 15.6% year-on-year to N$316.9 billion. The funding level stood at 101.2%. The investment management sector continued to expand, with assets under management increasing 3.3% quarter-on-quarter and 16.1% year-on-year to N$353.8 billion. This growth was supported by favourable market performance and investor inflows.
The collective investment schemes sector recorded asset growth of 1.5% quarter-on-quarter and 14.4% year-on-year to N$128.4 billion. Investor contributions and favourable market conditions drove this growth. The LISPs sector recorded strong growth, with administered assets increasing 4.1% quarter-on-quarter and 20.7% year-on-year to N$25.2 billion. Investment income and continued investor inflows supported this growth.
The microlending industry recorded strong loan-book growth of 27.0% quarter-on-quarter and 19.3% year-on-year to N$9.3 billion. Term lending growth drove this increase. As of June 30, 2026, the NBFI sector comprised 1,255 active entities and 15,444 intermediaries. Namfisa reported mixed compliance levels across the sector, with 59.6% of entities fully compliant and 4.1% classified as non-compliant.
Consumer complaints increased by 5.1% from the previous quarter, with 103 complaints registered during the quarter. However, 91.3% of these complaints were resolved within the prescribed service-level agreement timelines. Compensation awarded to consumers amounted to N$529,800, with the pension fund sector accounting for 62% of sector performance. The NBFI sector's growth and compliance levels indicate a positive outlook for Namibia's financial sector.
Key points
- The NBFI sector's total assets reached N$577.2 billion, a 15.1% year-on-year increase.
- Pension funds, long-term insurers, and collective investment schemes dominate the sector, accounting for 90% of total assets.
- The microlending industry recorded strong loan-book growth of 27.0% quarter-on-quarter and 19.3% year-on-year to N$9.3 billion.
