Renthia Kaimbi
The Namibia Financial Institutions Supervisory Authority (Namfisa) says it is not opposing Entrepo Finance’s court application and only stepped into the case to help the High Court understand the legal framework it oversees.
The regulator made this point in its written submissions in the ongoing dispute between Entrepo and the minister of finance, Ericah Shafudah, over consumer protection rules in the microlending sector.
Entrepo accused Namfisa of siding with the minister after the regulator filed an explanatory affidavit.
Entrepo claimed that Namfisa was acting in support of the minister in its case against the company, but Namfisa dismissed this, saying it was not taking sides.
It said it filed the affidavit only to help the court understand its role and to provide information on affordability assessment requirements.
Namfisa said it has a duty to provide information when a public entity holds details that are important to a case.
Namfisa described Entrepo’s accusations of bias as unfounded and irresponsible.
It said its actions were driven by the need to ensure fairness and transparency in the microlending industry.
The dispute revolves around the affordability assessment rule.
Under the Microlending Act of 2018, lenders must assess whether a borrower can repay a loan.
Microlending standard 4 requires that total loan repayments do not exceed 50% of a borrower’s take-home pay.
The rule aims to prevent reckless lending and protect consumers from falling into unmanageable debt.
Namfisa told the court that Entrepo’s founding affidavit does not clearly address whether the company meets the 50% threshold.
Entrepo said it complies with all applicable laws, but Namfisa argued the company failed to specify which laws it was referring to.
Namfisa said this lack of clarity shows why its input is needed in the case.
It stressed that affordability assessments are a core requirement for all microlenders and should guide the court’s decision.
The issue is unfolding amid public concern over lending practices, with many social media users claiming that some lenders ignore affordability checks, leading to behaviour described as reckless lending that pushes borrowers into financial difficulty.
Entrepo is asking the court to stop the government from terminating the payroll deduction management system and from blocking new deductions.
The case was heard yesterday by High Court judge Hannelie Prinsloo after acting judge Reinhard Tötemeyer recused himself because of his close friendship with Entrepo’s chief executive officer.
