Namibia Advances Financial Inclusion to Bridge Economic Divide
Namibia launches comprehensive financial inclusion initiatives to address historical inequalities, including a major youth entrepreneurship fund, as part of broader economic reforms discussed at the AFI Global Policy Forum.
Namibian Finance Minister Ericah Shafudah addresses the Alliance for Financial Inclusion Global Policy Forum in Swakopmund
Namibian Finance Minister Ericah Shafudah emphasized the critical role of financial inclusion in addressing historical inequalities during the 2025 Alliance for Financial Inclusion (AFI) Global Policy Forum in Swakopmund. The initiative builds upon Namibia's recent governance reforms aimed at fostering inclusive development.
Progress and Persistent Challenges
Despite significant progress that has increased financial access from 51% to 78% over the past decade, 22% of Namibians remain financially excluded. This gap particularly affects women, youth, rural residents, and people with disabilities, highlighting the ongoing impact of colonial-era disparities.
"True financial inclusion extends far beyond access to a bank account; it is about granting economic agency to our citizens," stated Minister Shafudah, emphasizing the broader implications for economic empowerment.
Youth Entrepreneurship Initiative
Building on Namibia's comprehensive youth entrepreneurship program, the government has launched a 500-million-Namibia-dollar fund offering collateral-free loans with flexible terms. This initiative complements the country's digital transformation efforts in promoting economic inclusion.
Key Features of the Youth Fund:
- Collateral-free loans with 4% interest rate cap
- Target of supporting 350 youth businesses
- Creation of 4,000 jobs in initial phase
- Comprehensive mentorship and coaching support
- Real-time monitoring platform for efficient fund management
International Support and Future Outlook
Minister Shafudah called for increased international support to accelerate financial inclusion efforts, emphasizing the need for tailored policies and resources to address global inequalities effectively. The initiative demonstrates Namibia's commitment to sustainable economic development and social stability through inclusive financial policies.
Jasmine Demraoui
Journalist in governance and climate reform, based in Windhoek.