Foreign-owned banks maintain grip on Namibia

Foreign-owned banks continue to dominate Namibia’s banking sector, controlling the bulk of the industry’s assets and reinforcing the country’s dependence on regional financial giants – even as local institutional investors maintain a limited but notable foothold in some lenders.

Latest figures from the Bank of Namibia show that three of Namibia’s four domestic systemically important banks (DSIBs) – Standard Bank, First National Bank and Nedbank Namibia – are subsidiaries of South African banking groups, while only one, Bank Windhoek, is fully locally owned.

Together, the four banks dominate Namibia’s banking sector and are classified as systemically important due to their size and role in the financial system.

While foreign control is clear at the top, local shareholding is uneven across the major banks.

First National Bank Namibia, through its listed holding company, has the strongest domestic participation, with Namibian asset managers such as Namibia Asset Management and pension-backed funds holding meaningful stakes alongside retail investors on the Namibian Stock Exchange.

By contrast, Standard Bank Namibia’s local ownership – broadened following its 2019 listing – remains widely dispersed among pension funds, unit trusts and retail investors, with no single dominant Namibian shareholder. Nedbank Namibia, which is not locally listed, has minimal visible local equity participation, remaining effectively controlled by its South African parent company.

Regional influence

The trend extends to smaller players, with all three Tier-2 banks also foreign-owned, backed by parent institutions in Angola, Portugal and Botswana. They are Banco BIC of Angola, Banco Atlântico Europa of Portugal and Botswana’s Letshego.

As a result, the country’s banking asset base remains overwhelmingly in foreign hands, the 2025 Bank of Namibia report states.

Subsidiaries of South African banks alone account for 68.4% of total banking assets. Bank Windhoek holds 28.9%, while the remaining 2.7% is shared among Tier-2 banks.

The structure highlights the continued influence of regional banking groups in Namibia’s financial system.

This raises ongoing questions about economic sovereignty, capital flows and decision-making centres located outside the country, particularly given that even where local shareholding exists, it is largely institutional and minority-based rather than controlling.

Funding grows, but pace slows

Despite the ownership imbalance, the sector posted moderate growth in 2025, with total funding rising by N$1.3 billion to N$188.0 billion. However, this represents a slower pace compared to the stronger expansion recorded in 2024.

Growth was primarily driven by non-bank funding, which increased by N$2.3 billion to N$147.2 billion. The rise was largely attributed to higher demand deposits, signalling continued confidence among depositors and businesses.

Other liabilities also saw a notable uptick, climbing by N$2.0 billion to N$7.5 billion, while capital and reserves strengthened by N$1.7 billion to reach N$24.6 billion.

However, these gains were partially offset by declines in traditional funding streams. Bank funding dropped sharply by N$4.0 billion to N$2.9 billion, while debt instruments edged down to N$4.2 billion.

Depositors remain backbone

Non-bank funding remains the backbone of the sector, accounting for 78.3% of total funding, up from 77.6% the previous year. Capital and reserves contributed 13.1%, while other liabilities made up 4.0%.

Bank funding and debt instruments accounted for the smallest shares, at 2.4% and 2.2%, respectively.

The figures underline a banking system heavily reliant on domestic deposits rather than interbank or wholesale funding.

The structure is generally viewed as stable but one that still operates within a landscape dominated by foreign ownership, with local investors playing a supporting rather than controlling role in most major banks.