Windhoek, July 16 – Namibia is poised to become the first African nation to officially roll out a Unified Payments Interface (UPI)-based digital payments system, with the launch scheduled for September 2025, according to a statement from India’s External Affairs Ministry.
The announcement follows Indian Prime Minister Narendra Modi’s recent visit to Namibia, during which the deal was finalised. The move comes a year after the Bank of Namibia partnered with NPCI International Payments Limited (NIPL), a wholly owned subsidiary of India’s National Payments Corporation (NPCI), to develop the new system.
UPI is India’s groundbreaking real-time payments infrastructure, now recognised as one of the largest and most efficient in the world. Since its launch nine years ago, UPI has grown exponentially, with over 500 million active users, 650 million daily transactions, and a monthly transaction value of $294 billion as of May 2025.
A recent IMF report underscored India’s dominance in the global fast payments ecosystem, noting that the country now processes over 18 billion UPI transactions per month, surpassing all other nations. Simultaneously, cash proxies like ATM withdrawals are declining, a trend attributed to UPI’s widespread adoption.
Namibia, home to just over three million people, has seen rapid growth in digital payments. In 2024, the local digital payments market reached $1.4 billion, with electronic funds transfers accounting for $68 billion in transaction value. The integration of UPI is expected to further accelerate this transformation, offering faster, more inclusive, and more secure payment options.
UPI’s reach now spans seven countries, including Singapore, Sri Lanka, and the United Arab Emirates, where it has facilitated both local transactions and cross-border remittances. The UAE-India corridor, one of the busiest in the world, saw over seven million Indian visitors in a single month, highlighting the system’s utility for travellers and businesses alike.
Namibia’s new UPI-based system will not only enhance domestic transactions but also play a pivotal role in strengthening bilateral trade with India, which has grown from $3 million in the early 2000s to $600 million today. Indian companies have increasing interests in Namibia, particularly in mining, manufacturing, and services.
While Namibia is currently the only African country with a formal UPI integration agreement, others are showing strong interest. During a recent visit to Ghana, Prime Minister Modi pledged to extend UPI to the West African nation. Rwanda and Mozambique are also reportedly in talks to adopt the system.
