BON payment system records milestone N$ 1 trillion settlements

Tujoromajo Kasuto

THE Bank of Namibia’s (BON) Namibia Interbank Settlement System (NISS) has, for the first time since its inception in 2002, recorded a settlement value of N$ 1 trillion during 2021 due to high volumes.

The hallmark milestone celebrates Namibia’s secure, reliable, and modern payment system. BON’s Acting Director of Strategic Communications, Kazembire Zemburuka, states that the NISS is a Real-Time Gross Settlement System (RTGS) that processes and settles time-critical payments. The highest settlement values recorded to date can be ascribed to the high volumes of the new domestic EFT system streams (NAMPAY), the utilisation of the lending facilities, specifically the 7 Day repo of the Bank, the purchase/resell of government securities; and inflows of funds to comply with Regulation 28 by the Namibia Financial Institutions Supervisory Authority (NAMFISA).

In 2021 the aggregate settlement value recorded in the NISS stood at N$1.050 trillion. In this regard, the share of single transactions settled in the NISS amounted to N$726.4 billion, which translates to 69 percent of the total value settled. While the retail payment transactions cleared through Namclear were N$323.9 billion, representing 31 percent of the aggregate value settled.

In particular, the EFT stream comprised 94.13 percent of the total retail payment value settled. Of the total retail payment transaction value, the Enhanced Credits, which is part of NAMPAY, contributed 52.37 percent of the total retail payments settled, while the same day payment stream contributed 36.43 percent.

This reflects the industry’s efforts towards the decommissioning of the old EFT streams in line with the regulatory requirements to promote efficiency in the processing of payments in the NPS. Equally important to note, the share of payment card stream in relation to the total retail payments was 5.87 percent.

The Bank indicated that this milestone is achieved by a resilient NPS, which will continue to uphold and ensure financial system modernisation and efficiency, as guaranteed by the Bank of Namibia’s recently launched Strategic Plan 2022-2024 and the NPS Vision and Strategy 2021- 2025.

In addition, Zemburuka notes that the role of a fully functional and modern payment system in the economy cannot be understated as it propels the meaningful participation of all agents in the economy at large, and it remains BON’s preoccupation to foster a modern, safe and secure national payment system that delivers efficient and effective payment services.

 

By Observer