WINDHOEK, Dec. 19 — Namibia has joined a growing number of countries in Africa and globally that have established the Deposit Guarantee Authority to protect depositors of banking institutions. The Namibia Deposit Guarantee Authority is a newly established public institution, created in terms of the Namibia Deposit Guarantee Act (Act No. 16 of 2018), to manage and administer the Deposit Guarantee Scheme. The Bank of Namibia, director of communication, Emma Haiyambo, said on Thursday that in the unlikely event of a banking institution’s failure, compensation shall be paid out to depositors when their deposits are
held by a banking institution are unavailable. Haiyambo said the Namibia Financial Sector Strategy 2011-2021 advocates for a safety net to be put in place to protect small depositors in an event of bank failure. “Increasingly, countries are putting in place mechanisms to respond to potential bank failures through deposit guarantee schemes,” she added. Meanwhile, the central bank Thursday announced the appointment of the board of directors of the Namibia Deposit Guarantee Authority who will serve for a period of five years. The Deposit Guarantee Authority is an independent juristic body housed by the Bank of Namibia and is being supported administratively through the existing structures of the bank.