This study seeks to analyse the financial sector’s (commercial banks and the Bank of Namibia)
policy interventions towards creating an inclusive financial system. To achieve this the objective of
this study is in three folds, firstly to examine the level and extent of financial inclusiveness in
Namibia, secondly to evaluate financial sector (commercial banks and the Bank of Namibia)
policies to ascertain their effectiveness in promoting access to finance in Namibia, and thirdly to
review international experiences to provide key learning lessons for Namibia’s financial system
improvement.
It is important that the problems associated with the high level of financial exclusion are
understood. Through an analysis of the theoretical information and empirical results it is possible to
establish how to improve financial inclusion which is critical for development and economic growth.
Financial Inclusion (FI) has become a key pillar of development policy in a number of countries
around the world on account of the fact that exclusive development is not sustainable. The paper
explored the role of Mobile Money Services (MMS) in enhancing financial inclusion. The study was
motivated by the proliferation of mobile phones amongst low income earners, the prepaid billing
system sensitive to users’ incomes, adoption of ICT by government and the private sector that has
enhanced e-commerce readiness of Uganda, as well as the launch of three Mobile Money
Services in the country. A qualitative analysis of the web content of the three MMS providers was
undertaken and focused on issues related to services provided; transaction charges; number of
registered customers; number and volume of transactions; stakeholders; user interfaces and
security; institutional relationships; policy and regulation; as well as appropriateness of the current
business model(s). The findings indicate that while the MMS have enormous potential to enhance
FI, it would require an open business model that involves all stakeholders to establish a truly
national solution. Furthermore, the initial contribution of MMS to FI is in improving money transfer
by lowering the transaction costs for small volumes. As a way forward, the regulatory authorities
need to establish a legal framework that does not stifle innovation but ensures safety for
customers’ savings.