The Namibia Financial Institutions Supervisory Authority (Namfisa) has reported steady growth across the non-banking financial sector, despite notable compliance challenges.

According to Namfisa's statistical report for the first quarter of 2025, the sector's total assets stood at N$481.6 billion, reflecting a 1.6% quarter-on-quarter increase and a 12.8% year-on-year rise.

The growth was attributed to favourable market conditions, strong investment returns, and sustained demand.

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The report highlights mixed levels of regulatory compliance across the sector.

Of the 625 regulated entities assessed, 58.7% were fully compliant and classified under stage 1.

However, 107 entities (10%) were classified as stage 5, indicating serious non-compliance, with 91.6% of those falling within the microlending sector.

Namfisa cited common causes of non-compliance as the failure to submit regulatory returns, non-payment of levies, and failure to act on findings from inspections.

Chief executive Kenneth Matomola in the report expresses optimism about the sector's short- to medium-term outlook, stressing the importance of collaboration with stakeholders and robust supervision to ensure a stable and inclusive financial environment.

"We thank our regulated entities for their commitment to transparency and cooperation in safeguarding consumer interests and ensuring the long-term sustainability of the financial sector," he says.

As of the end of the first quarter of 2025, the non-banking financial sector consisted of 1 065 regulated entities and 14 761 intermediaries.