WHY NAMFISA REGULATES AND SUPERVISES FINANCIAL INSTITUTIONS
The World Consumer Rights Day on March 15 will be the launch date of a new initiative to enhance financial education (depends on date of publication)
What is the “Financial Literacy Initiative” (FLI)?
The Financial Literacy Initiative (FLI) is a national platform of more than 20 public, private and Civil Society institutions in the financial services sector initi-ated by Ministry of Finance in 2009. The platform partners have come together voluntarily to share experiences, guide and coordinate the implementation of financial literacy and consumer protection related activities in Namibia.
What is the Vision and Goal of the FLI?
a. Vision: The vision of the FLI is an improved quality of life and a narrowed economic divide achieved through financially capable, assertive and well pro-tected Namibians.
b. Goals:
• Increased knowledge and skills on financial services, products and institu-tions.
• Increased awareness of consumer rights and responsibilities.
• More financial institutions practicing Responsible Finance
• Enhanced protection of consumers through appropriate laws and regulation and availability of recourse mechanisms
By reaching these goals, more informed, adequate and well-protected usage of financial services are promoted, and a greater access to financial services can be reached.
b. Goals:
• Increased knowledge and skills on financial services, products and institu-tions.
• Increased awareness of consumer rights and responsibilities.
• More financial institutions practicing Responsible Finance
• Enhanced protection of consumers through appropriate laws and regulation and availability of recourse mechanisms
By reaching these goals, more informed, adequate and well-protected usage of financial services are promoted, and a greater access to financial services can be reached.
What are the target groups of the FLI?
Generally, the activities of the FLI are for every enterprise and individual in Na-mibia. The launch of the first FLI campaign will, however, specifically target micro- and small entrepreneurs as well as the low-income segment of the society.
Further target groups of the FLI will be:
• Youth, including pupils
• Employed people ( especially low income groups)
• Staff of financial service providers (banks, non-bank financial institutions, financial NGOs and microfinance institutions).
Further target groups of the FLI will be:
• Youth, including pupils
• Employed people ( especially low income groups)
• Staff of financial service providers (banks, non-bank financial institutions, financial NGOs and microfinance institutions).
What will be the activities of the FLI?
The FLI Secretariat at the Ministry of Finance has, in close cooperation with the FLI platform partners, developed a media and awareness campaign which will be kicked off in March 2012. In order to reach the target groups and consumers of financial services in the country, a media mix of street theatre, trainings, workplace activities and public events, as well as printed material will be implemented. The launch of the campaign aims at increasing the awareness on saving, budgeting, and spending behaviours.
Summary
Launch Of The Financial Literacy Initiative (FLI)
Commemorating World Consumer Rights Day – 15 MarchTheme: “Our Money, Our Rights”The national Financial Literacy Initiative (FLI) was officially launched by the Honourable Minister of Finance, Sara Kuugongelwa-Amadhila, on 15 March, aligning with the global observance of World Consumer Rights Day under the theme “Our Money, Our Rights”. Below is a summary of her remarks and key highlights from the event.
Why the Financial Literacy Initiative Matters
1. Tackling Financial Exclusion and Low Literacy
The FLI was born out of a pressing need to address low levels of financial literacy and high levels of financial exclusion in Namibia — especially among low-income earners and Small and Medium Enterprises (SMEs). It also responds to challenges in accessing financial services due to physical, affordability and eligibility barriers.
The FLI was born out of a pressing need to address low levels of financial literacy and high levels of financial exclusion in Namibia — especially among low-income earners and Small and Medium Enterprises (SMEs). It also responds to challenges in accessing financial services due to physical, affordability and eligibility barriers.
2. Beyond Access – The Need for Better Offerings
While access to financial services is improving, there remain serious concerns around the quality, diversity, and affordability of available financial products — particularly for vulnerable segments. These gaps hinder Namibia’s efforts to become a knowledge-based, inclusive and competitive economy.
While access to financial services is improving, there remain serious concerns around the quality, diversity, and affordability of available financial products — particularly for vulnerable segments. These gaps hinder Namibia’s efforts to become a knowledge-based, inclusive and competitive economy.
3. A National Platform for Financial Education
The FLI serves as a national vehicle for providing coordinated, impactful financial education. It seeks to improve financial decision-making and narrow the economic divide by empowering consumers through better knowledge and increased access to suitable financial products.
The FLI serves as a national vehicle for providing coordinated, impactful financial education. It seeks to improve financial decision-making and narrow the economic divide by empowering consumers through better knowledge and increased access to suitable financial products.
“Be Wise” Campaign – Phase I of the FLI Rollout
The launch of the FLI also marked the rollout of Phase I of a national consumer education campaign themed “Be Wise”.
This campaign centres around three core messages:
The “Be Wise” campaign is designed to:
Why this theme?
Recent findings from the 2011 FinScope Survey revealed that:
Distribution Channels and Tools:
Addressing the Core Issues in Namibia’s Financial Landscape
Looking Ahead – Long-Term Impact and Call to Action
The Honourable Minister stressed that the FLI is designed to have a lasting legacy. For it to truly transform the financial landscape, all stakeholders — from financial service providers to everyday consumers — must embrace the initiative and demonstrate behavioural change.
“Providing diversified, affordable, and relevant financial products is a necessary step toward a truly inclusive financial system,” she noted.
She concluded with a powerful call to action:
“Natu landuleni nee, nokutula miilonga omauyelele nomayele ngono tatu pewa okuziilila moprogram ndjika”
(Let us assimilate and put to effective use the messages from this programme.)
(Let us assimilate and put to effective use the messages from this programme.)