NDGA charts course to N$100m asset pool

The Namibia Depositors Guarantee Scheme (NDGA) has set a target to grow its assets under management to N$100 million by 2028, aiming to strengthen the safety net for bank depositors.

Founded in the aftermath of the 2018 SME Bank scandal—which left thousands of Namibians unable to access their savings—the Scheme is designed to compensate depositors in the unlikely event of a commercial bank failure. 

The initiative seeks to enhance consumer protection while reinforcing broader financial stability.

“Building on the progress we have made over the past three years, our new strategic plan aims to cement the gains from the previous strategy and position the NDGA as a future-fit institution committed to the protection of depositors’ funds,” said Linda Chicalu, deputy chairperson of the NDGA Board.

To reach the N$100 million milestone, the NDGA will prioritise the following over a two-year period, by placing funds in the market through appointed investment managers, continuously monitoring investment returns against benchmarks, engaging managers on performance enhancement strategies, reviewing the investment policy and guidelines and calculating operational cost thresholds in line with international best practice

Coverage now protects 9 in 10 depositors

The Scheme currently guarantees N$50,000 per depositor per member institution—up from an initial N$25 000. At this level, more than 90% of current depositors are fully covered.

In the event of a bank failure, the NDGA ensures depositors have access to all or part of their funds within a specified timeframe. This assurance also helps prevent panic withdrawals, reducing the risk that a single bank failure spirals into a systemic crisis.

Depositors with balances above N$50,000 remain partially covered and are eligible for reimbursement up to the threshold value.

Comparatively, Namibia’s coverage limit is low compared to South Africa’s Corporation for Deposit Insurance (N$100 000, and Botswana’s Deposit Insurance Scheme which places coverage at P250 000 (N$302 500).