Chamwe Kaira
The Bank of Namibia (BoN) has set limits on fees that local banks may charge for cross-border money transfers within the Common Monetary Area (CMA).
The CMA includes Namibia, South Africa, Lesotho and Eswatini.
According to the central bank’s directive on user fees, charges and speed of cross-border Common Monetary Area low-value transactions (PSDIR-9), as amended, Namibian banks may not charge more than N$20 for incoming or outgoing transfers below N$1 million.
For transfers ranging between N$1 million and N$5 million, the maximum fee is capped at N$35 for incoming transactions and N$30 for outgoing transactions.
The directive applies when a person in Namibia sends money to, or receives funds from, another CMA country.
The limits aim to standardise and control the cost of cross-border transfers within the monetary bloc.
BoN has also outlined fees charged by commercial banks for exchange control applications.
These apply when customers request approval to remit funds outside the country under exchange control rules.
Such applications are required when transactions exceed permitted thresholds.
These include the single discretionary allowance of N$1 million and the investment allowance of N$6 million.
They also apply to offshore loans, guarantees, and some import or export payments that need regulatory approval.
Fees vary based on processing time and complexity. Standard applications, processed within three working days, range from N$750 at Atlantico Bank Namibia to N$1 840 at Nedbank Namibia.
Urgent applications, processed within one working day, range from N$1 000 at Bank BIC to N$2 000 at First National Bank (FNB).
For complex applications that may take up to seven working days, fees range from N$1 000 at Bank BIC to N$2 200 at FNB Namibia.
The central bank noted that Letshego Bank Namibia does not offer exchange control application services.
