Jo-Maré Duddy
22 June 2011
Cabinet has approved a financial sector strategy, tackling controversial issues like banking charges, ownership and access to banking in Namibia, and has given Finance Minister Saara Kuugongelwa-Amadhila the green light to launch it.
At its eight ordinary meeting on May 24, Cabinet furthermore sanctioned the establishment of an inter-ministerial council to deal with the strategy.
There is no date yet when the blueprint will be launched, Deputy Finance Minister Calle Schlettwein said yesterday. The ministry, the Bank of Namibia (Bon), the Namibia Financial Institutions Supervisory Authority (Namfisa) and the industry still need to consult, he said.
According to a release from Cabinet Chambers, the strategy should serve as a “catalyst for bringing about development and transformation in the financial sector”.
Schlettwein said the strategy addresses a wide range of issues, from banks charging punitive fees to financial literacy to the much-debated topic of local participation in the banking sector.
Government regards the strategy as serious business.
“The issue is not whether we implement it, but how we do it,” Schlettwein said.
The strategy could be enforced by administrative of legal intervention, disincentives or voluntary compliance from industry’s side.
In its statement on Monday, Cabinet said change in the sector will be brought about through “implementing strategies for the development of a more effective, efficient, resilient, competitive and dynamic financial system with best practices”.
The strategy will also promote the role of the financial sector in the economy, the sector’s contribution to economic growth and the emergence of strong and innovative domestic institutions that are more technology-driven and ready to face the challenges of an increasingly globalised economy, Cabinet said.
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