The Namibia Financial Institutions Supervisory Authority (NAMFISA) has endured a total comprehensive deficit for the year ended 31 March 2023 amounting to N$8.9 million, the Authority’s latest financial results released today show.
This deficit is however positive compared with a budgeted deficit of N$22.8 million.
Addressing the media, NAMFISA Chief Executive Officer, Kenneth Matomola said that NAMFISA continued to maintain a sound financial position during the review period, despite challenges that adversely affected the financial performance of supervised entities.
“During the review period, levy income amounted to N$228.9 million which represents an increase of 0.09 percent (N$200,000) compared with the levy income recorded for the prior financial year. The increase in levy income indicates that the NBFIs remained financially stable, sound, and resilient, despite the challenging economic environment,” he said.
The Authority incurred a total expenditure of N$260.6 million representing a 4.3 percent (10.8 million) increase compared to prior financial year.
“As a regulator, NAMFISA is highly reliant on its human resources. Consequently, staff costs made up the largest share (73 percent) of the total expenditure. Staff costs increased by 4.8 percent to N$191.2 million, compared with the previous financial year,” he added.
Compared to 2022, risks to Namibia’s financial system’s stability have eased, while other risks have increased. These increased risks are primarily associated with developments in the macroeconomic environment, which have a subsequent impact on household and corporate debt, the banking sector, and NBFIs. The upsurge in risks has resulted mainly from the significant slowdown in global output, increased global financial turbulence, the depreciation of the Namibia dollar (NAD) against major currencies, as well as sovereign credit rating downgrades.
“During the period under review, the non-bank financial sector remained robust. The NBFI assets contracted by 1.2 percent to N$366.2 billion during the 2022 year, due largely to the poor market performance of equity markets in Namibia and abroad. Risks inherent to NBFIs include inflation and its impact on the affordability of NBFI services, particularly medical aid funds, long-term insurance, and short-term insurance. Regardless, the non-bank sector remained solvent and is expected to continue as such in the short-to-medium term. The stability of the sector is attributed to the collaborative, effective, and prudent execution of NAMFISA’s mandate by all stakeholders.” Matomola added.