Namibia Consumer Credit Bill Targets Unregulated Debt Collectors and Outdated Lending Laws

NAMFISA has advanced legislation that would replace Namibia's Microlending Act with a broader Consumer Credit Bill designed to supervise credit providers, regulate debt collectors, and address disputes over credit bureau blacklisting. The bill, which has been under development since 2022, is expected to be resubmitted to the finance minister by September or October 2026 after a final round of national consultations concluded earlier this year.

The Details

Nolan Swartz, NAMFISA's legal services general manager, said the Consumer Credit Bill was drafted with assistance from a multi-agency coalition that includes the Ministry of Finance, the Bank of Namibia, the Financial Literacy Initiative, and GIZ. "This led to the development of the Consumer Credit Bill. The purpose of the bill is to promote fair and responsible market conduct in consumer lending," Swartz said.

If passed and gazetted, the bill would supervise and register all credit providers across the country and establish binding rules for debt collectors, according to Swartz. The bill would create a broader regulatory framework covering credit providers, credit bureaux, and debt collectors, and would apply to existing long-term credit agreements with transitional measures for lenders, according to The Brief.

Swartz highlighted the absence of any current oversight for debt collectors. "We increasingly see the unscrupulous behaviours of debt collectors from reports. Debt collectors are also not regulated anywhere in the country," he said. The bill is intended to close that regulatory gap by establishing formal rules for the industry.

The legislation would also address consumer disputes around credit bureau blacklisting and listings. The Villager reported that consumers can be blacklisted through the TransUnion-linked ITC process and may struggle to have listings removed, a situation officials cited as a reason for stronger credit bureau rules under the new framework.

Context

Swartz said many retailers currently extend consumer credit under the Credit Agreements Act, a 1980 law inherited at independence. He argued that those arrangements are not properly supervised by a dedicated regulator. The Microlending Act, which the new bill would replace, does not provide the comprehensive oversight that officials say is needed for today's consumer credit market.

The Brief reported that the bill has been under development since 2022 and has included consultations across all 14 regions with both consumers and industry stakeholders. A final round of stakeholder consultations ended on 13 March 2026. The multi-year development process involved the coalition of government agencies and international partners that Swartz identified in his remarks. The coalition's earlier policy work helped shape the provisions now included in the draft legislation.

What's Next

"It is expected that the bill will be finalised and resubmitted to the minister by September or October 2026, after which it will proceed through the normal parliamentary process," Swartz said, as quoted by The Brief. Once the finance minister receives the finalised bill, it would move through Parliament for consideration, debate, and potential passage. If approved, the bill would then be gazetted and enacted, replacing the existing Microlending Act and establishing the new regulatory framework for credit providers, debt collectors, and credit bureaux.