Namfisa collects N$50,8m from micro lenders

August 10, 2015, 9:09am

Namfisa collects N$50,8m from micro lenders

Namibia Financial Institution Supervisory Authority (Namfisa) has generated N$50 815 701 million worth of levies from the micro lending and Short term insurance industry, its current report shows.
According to the report, the institution collected less from medical aid funds and friendly societies and stock brokers.
“The Authority and its subsidiary managed its financial resources prudently in line with the approved budget. In this respect, the group’s total income for the year ending 31 March 2015 amounted to N$127.4 million, with expenditure totalling N$134.1 million. The total comprehensive loss for the year amounted to N$4.4 million, which was far lower than the budgeted deficit for N$66 million” the reported said.
The group total assets decreased by N$2.2 million to N$245.5 million as at 31 March 2015, compared with N$247.7 million as at 31 March 2014.  
Non-current financial assets, which represent investments in unit trusts, have decreased by N$27 million to N$61.8 million as at 31 March 2015 compared with N$88.8 million as at 31 March 2014.
Current financial assets, which represent investment in fixed deposits, decreased by N$25.5 million to N$57.3 million as at 31 March 2015, compared with N$82.8 million as at 31 March 2014.
“The reduction in financial assets can be largely attributed to the acquisition of a 100% shareholding in Metropol (Pty) Ltd at cost of N$42.0 million. Metropol Pty Ltd is the owner of Erf 1503, Independence Avenue, Windhoek on which the Authority plans to erect office buildings for own occupation” the report says.
Namfisa is also working on a draft for the Namibia Financial Institution Supervisory Authority Bill which will reform Namfisa by expanding its mandate, increasing its supervisory powers and improving its governance capacity.
The institution has also submitted a draft for the Financial Services Adjudicator Bill (previously known as the Financial Services Ombudsman Bill) which will create a complaints adjudicator for the entire financial sector, including banks and other state owned financial service providers.
In contrast to the out-dated laws that the Financial Institutions and Markets Bill will replace, the FIM Bill provides for a framework that allows for a more flexible and progressive approach towards prudential and market regulation. To this end, the Bill provides for Namfisa to issues standards and for the Minister of Finance to issue regulations, both of which subordinate measures can easily be amended to deal with market developments.
The Value of the Namibian Stock Exchange (NSX) increase significantly during the year, driven by higher share prices, a rise in the volume of outstanding shares and the listing of new instruments. The market capitalisation of the NSX increased by 22.4% to N$1 722.6 billion.
This increase in the market value was mainly driven by the increase in the prices of shares and the 7.1% increase in the volume of shares outstanding.
The listing of electronically traded funds added N$42.1 billion to the market capitalisation.
“The market capitalisation of shares issued by companies incorporated in Namibia and primary-listed on the NSX, increase by 19.2% to N$22.3 billion. This increase is due mainly to the 17.2% gain in the prices of shares quoted on the primary market. The price of the outstanding shares remained the same from 2013.
There has been a slight increase in the value of loans from N$698 460 reported for 2013 to N$7717 031 for 2014, representing a growth of 2.7%.
The growth in the number of loans disbursed emanated mainly from the category payday lenders who made up 86% of the total volume of the loans disbursed to individuals during 2014.

Staff writer