Business Reporter
THE Namibia Deposit Guarantee Authority (NDGA) has released its 2025 Annual Report, providing a clear account of the work undertaken to strengthen depositor protection and confidence in Namibia’s financial system.
A major highlight from the year under review is the increase in the maximum deposit guarantee coverage limit from N$25,000 to N$50,000 per depositor. This broadens the financial safety net and gives depositors more substantial protection in the unlikely event of a commercial bank failure.
The report comes amid rising concerns of fraud within commercial banks, particularly via Electronic Fund Transfers (EFTs), with Namibians having lost a total of N$53 million in 2025, compared to N$29 million in 2024, according to statistics from the Bank of Namibia (BoN).
The Namibia Deposit Guarantee Act, 2018 (No. 16 of 2018), established the NDGA with the primary goal of administering the Deposit Guarantee Scheme. The scheme aims to protect depositors from the loss of their deposits by compensating them in the unlikely event of a commercial bank failure. This ultimately enhances consumer protection while also improving financial stability.
Photos: Bank of Namibia
The NDGA Fund ended the year at N$40,092,984, reflecting a growth of about 32% for the year under review. The growth is attributed to the fund’s deliberate strategic objective to grow the fund. As such, the fund benefited from the prudent management and investment strategy of the premiums received from member institutions.
During the year under review, the fund’s investment portfolio outperformed its benchmark, the Alexander Forbes Short-term Fixed Interest 3-month Index (STeFI3), delivering an excess return of 83.5 basis points. The portfolio delivered an annual return of 8.1%, outperforming its benchmark return of 7.3%, reflecting disciplined execution of the investment strategy and effective positioning within money market and short-duration fixed-income instruments.
The report also highlights the Authority’s continued efforts to build a more responsive and resilient deposit insurance system for Namibia. During 2025, the Authority participated in the national crisis simulation exercise, continued regional stakeholder engagements, and advanced strategic partnerships through cooperation with peer institutions.
Finally, the year also marked the conclusion of the Authority’s inaugural 2023–2025 Strategic Plan. As the NDGA moves into its new 2026–2028 Strategic Plan, the Authority remains committed to protecting depositors, promoting trust in the banking sector, and contributing to financial stability in Namibia.
