FINANCE Minister Saara Kuugongelwa-Amadhila yesterday called on the financial sector to "fight incidences of fraud and other violations of our financial laws and systems".

These violations threaten the local system and cause "undue risks" to the savings of Namibia's investors, the Minister said.

Her statements came in the wake of Anti-Corruption Commission's probe into the dealings of Teko Trading and Nuctech regarding a multimillion-dollar scanner contract for Government, as well as the suspension of Defence Force Chief Lieutenant General Martin Shalli amidst speculation of kickbacks.

Opening a one-day seminar on reinsurance, Kuugongelwa-Amadhila said unless the financial sector is safeguarded and developed, Namibia's dream of a developed nation by 2030 remains but a dream.

The Minister also stressed the importance of retaining more savings in Namibia, calling on the financial sector to support efforts in this regard.

"The recent happenings in the global financial sector have demonstrated that it is not necessarily safer to invest our savings outside the country than here," she said.

Government has been struggling for years to convince the private sector to invest more locally.

Trying to curb capital flight, Government even amended Regulation 28 of the Pension Fund Act and Regulation 15 of the Act on Long-term Insurance, limiting asset managers to invest only ten per cent of their investments in dual-listed shares in the Namibian Stock Exchange (NSX) and forcing them to invest at least five per cent in unlisted entities locally.

The private sector has opposed this, saying the country does not offer enough investment opportunities.

Yesterday, Kuugongelwa-Amadhila reiterated her stance.

"An increasing number of our investors are showing interest to invest in our economy. Surely the present opportunities for investment for our savings are vast and which we must not (it) allow to pass by," she said.

The Minister further urged the financial sector to come up with inno-â-¨vative products and further extend its services coverage in order to support a recovery of our economy and minimise individual business failures that could cause job losses.

"Supporting the recovery of our economy cannot be left to Government alone. The private sector must come on board both through the provision of customised products and safeguarding the integrity and sustainability of our systems," she said.

Turning to the reinsurance industry, Kuugongelwa-Amadhila said the sector has experienced significant growth since the establishment of NamibRe.

"Such growth will not only help us to retain more our savings through reinsurance premiums for reinvestment in our economy, but it will also help us to reduce the exposure of our systems to risks from the external environment," she said.

More than 30 participants from short-term insurance companies across Namibia attended the seminar yesterday to learn about the mechanisms of reinsurance.