Banking’s Hidden Impact on Namibia’s Economy

Members of the Bankers Association of Namibia make a substantial, yet often overlooked, contribution to the economy through job creation, tax payments, pension fund investments and reinvestments into the financial system.

The banking sector remained well capitalised, profitable and liquid during the third quarter of 2025, and total assets of the banking sector increased by 3.1% to N$184.7 billion during that reporting period.

There is no doubt that the financial industry’s contribution extends beyond assets. Beyond corporate tax, the sector also collects and remits pay-as-you-earn from employees, staff pay value-added tax when they make purchases, dividends are paid to domestic shareholders, there is pension fund income from bank investments, as well as other contributions spread across multiple sources.

Quantifying the sector’s total economic contribution is challenging, as it would require examining extensive documentation and information that is not always publicly available.

Research provides some insight. A paper published last September in the Journal of Social Sciences found that between 2016 and 2021, the financial and insurance services industry contributed 4.2% to gross domestic product (GDP), making it the third-largest sector.