Namibia’s central bank, the Bank of Namibia, has granted the provisional authorization for Access Bank to enter the Namibian market.
This means that the new bank, to be known as Access Bank Namibia, was now given the green light to make the final arrangements in its intention to start its operations in the country.
Access Bank, one of Nigeria’s biggest commercial banks, owned by Access Bank Group, was thus granted permission to set up its operations in Namibia in line with terms of section 12(5) of the Banking Institutions Act, 2023 (Act No. 13 of 2023).
“The provisional authorisation is effective from 4 October 2024 for a period of six months. During this period, Access Bank Namibia must fulfil all regulatory conditions required for full authorization,” said Bank of Namibia’s Director for Strategic Communications and International Relations Mr Kazembire Zemburuka.
“If Access Bank Namibia successfully meets these requirements within the six-month timeframe or earlier, the Bank of Namibia may issue a certificate of authorisation, allowing Access Bank Namibia to officially commence banking operations.
“The Bank of Namibia herewith notifies the public that during this six-month provisional authorisation period, Access Bank Namibia is not permitted to conduct banking business with any individual or entity in Namibia.
“Specifically, the [Access Bank] institution is prohibited from soliciting deposits or engaging in other banking activities until it receives its final certificate of authorisation.
“This measure is in place to ensure the banking institution meets all regulatory requirements before it opens its doors.”
Access Bank Group is a financial services conglomerate, headquartered in Nigeria, with subsidiaries in the Democratic Republic of the Congo, Ghana, Kenya, Tanzania, Nigeria, Rwanda, The Gambia, Guinea, Cameroon, Sierra Leone, Mozambique, Botswana, South Africa, Zambia, France and the United Kingdom.
The arrival of Access Bank in the Namibian market follows the death of a local bank which was known as Trustco Bank.
Trustco Bank gave back its banking licence to Bank of Namibia on 22 August 2024 after its parent company (Trustco Group Holding) said that it was no longer interested in the banking business.
This was despite that Trustco Bank’s failure followed after the successful entry of another foreign bank into the Namibian market, the Letshego Bank Namibia, which originates from Botswana (July 2016) and also another bank, Bank BIC, which originates from Angola (2015).
And none can forget the dramatic demise (in 2017) of the SME Bank, a Namibian state-owned bank with a minority shareholding by Zimbabwean nationals. SME Bank was in operation for just five years.
In the photo: Access Bank.
