Namibia’s president, Dr Netumbo Nandi-Ndaitwah, has decried disparities between rapid adoption of digital financial services and a lack of financial literacy in the country.
While the rapid uptake of digital finance service signals a shift towards a digital economy, the widespread levels of financial literacy among those adopting such services exposes them to cybercrime.
Nandi-Ndaitwah has thus tasked the Bank of Namibia with awareness and education campaigns to shield the public and concurrently drive the government's campaign to ensure digital inclusion.
Speaking in Windhoek, on Thursday, at the launch of the upgraded Namibian banknote and new coinage series, she described digital financial literacy as a “pressing weakness”.
"While digital financial services are expanding rapidly, many of our people lack the skills and confidence to use these safely and effectively, leaving them vulnerable to fraud and scams, hence, limiting the full potential of digital inclusion," she said.
Nandi-Ndaitwah said while commendable progress was made over the years, Namibia’s financial sector still faces significant challenges that limit its ability to drive inclusive and sustainable economic growth.
She noted access to financial services remained uneven, with rural communities and those engaged in the informal economy still largely excluded from the mainstream financial systems and services, yet they accounted for much of the population.
"Financial services have a great role to play in our agenda of economic and national transformation, hence, a need for it to be inclusive."
Nandi-Ndaitwah said digital financial services can help bridge the digital divide gap.
She also lauded the central bank's Digital Transformation Agenda, aimed at democratising financial services, enhancing efficiencies and improving service delivery.
The bank has embraced the development of digital public infrastructure for financial services, including availing new technologies and digital solutions, such as the automation of Government Payments and the Instant Payment Solution.
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