Consumer credit bill nears final stage
Following a second round of public consultations, the proposed consumer credit bill is nearing completion to overhaul Namibia’s consumer credit industry and protect borrowers.
Namibia Financial Institutions Supervisory Authority (Namfisa) spokesperson Joanette Eises yesterday confirmed that a revised draft of the bill was issued on 3 November 2025, with consultations having closed on 13 March.
“Namfisa is currently consolidating and reviewing public comments before the final draft is resubmitted to minister of finance Ericah Shafudah for consideration,” she said.
The bill introduces a comprehensive regulatory framework aimed at promoting fair, transparent and responsible conduct across the entire consumer credit market.
Among its key provisions, Eises said, are stricter affordability assessments to prevent reckless lending, improved disclosure requirements, stronger consumer rights protections, and tighter regulation of credit providers, credit bureaus and debt collectors.
The proposed law also seeks to establish consistent debt collection standards and improve consumer credit reporting systems while reducing financial crimes within the sector.
Once enacted, the bill would repeal the Usury Act of 1968, the Credit Agreements Act of 1980, and the Microlending Act of 2018.
Eises said the bill would apply to all credit agreements made or having effect within Namibia between parties dealing at arm’s length, except for certain public institutions, large juristic persons, and foreign-based credit providers.
The regulator further highlighted that the Financial Institutions and Markets Act (Fima) significantly strengthens consumer protection within Namibia’s non-bank financial sector by giving Namfisa broader powers to supervise institutions, investigate misconduct, impose sanctions and intervene where consumers are unfairly treated.
The law also advances the treating customers fairly principle, requiring financial institutions to prioritise transparency, fairness and responsible customer treatment throughout their operations, she said.
Eises said Fima represents a shift towards a more modern and consumer-focused regulatory framework aimed at promoting accountability, market stability and public confidence in the financial sector.
She clarified that the ongoing operational challenges affecting Namibia Health Plan (NHP) fall outside the scope of the consumer credit bill.
The authority explained that NHP is regulated under Fima, which came into effect on 1 May this year and replaced the Medical Aid Funds Act.
Eises said the matter remains under active regulatory oversight amid concerns over delayed claims processing, stakeholder communication and service delivery disruptions.
Consumer analyst Salomo Iipinge says Namfisa benefits from levies paid by registrars, who in turn recover these costs from consumers.
“Namfisa therefore plays a biased role because registrars have the financial influence to shape the sector in their favour, while consumers are left to bear unfair costs,” he says.
Iipinge says powerful industry players influence Namfisa to amend laws in their favour or delay reforms, resulting in inadequate consumer protection.
He cites the consumer credit tariff currently under review as an example, saying it favours credit providers more than consumers.
“There is a clause stating that if a credit provider grants a loan recklessly, the consumer can take the matter to court for a determination.
“But how can an ordinary consumer afford legal representation? We speak of consumer rights, yet consumers are neither empowered nor adequately supported,” Iipinge says.
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المصدر: The Namibian
