The Government of Namibia has released a ten-year strategy to reform the country’s financial sector, with a core focus on expanding green finance, broadening investor participation, and improving access to financial services through regulatory and digital infrastructure upgrades.

The Financial Sector Transformation Strategy 2025–2035, made public earlier this week, sets out plans to introduce at least five new financial instruments each year and increase the number of registered domestic and foreign investors by 70 percent by 2035. It also targets a 75 percent increase in total assets under management.

Environmental sustainability features prominently. A dedicated National Sustainable Finance Strategy will be implemented to support the development of green financial products and services. One of its stated aims is to enable 60 percent of rural farmers to access climate-related financial tools, thereby supporting a low-carbon development agenda while addressing rural financial exclusion.

The strategy further aims to deepen the country’s capital markets, with a focus on enhancing local participation in the Namibian Stock Exchange. Financial institutions introducing innovative and sustainability-linked products will be eligible for incentives under a new policy framework scheduled for development by 2026.

To foster innovation, the government will establish a regulatory sandbox and sector-led innovation hub, enabling financial institutions and technology providers to test new products and services in a controlled environment. These initiatives are designed to support the responsible adoption of financial technologies, including digital lending platforms and blockchain-based services.

Infrastructure modernisation is another priority. Plans include the rollout of digital identity systems and electronic Know Your Customer (e-KYC) mechanisms to streamline client verification processes. These tools are expected to improve access to formal financial services, particularly in underserved rural areas.

According to the Ministry of Finance and Public Enterprises, which coordinated the strategy, implementation will require strong collaboration between government agencies, financial institutions, and development partners. The plan aligns with regional and international goals for inclusive finance, sustainable investment, and financial sector resilience.