Bank of Namibia Cuts Cross-Border Payment Costs and Boosts Transaction Speed

The Bank of Namibia (BoN) has announced new measures aimed at reducing high costs and improving transaction speeds for cross-border payments, a move it says will bolster Namibia’s competitiveness in regional and international trade.

The measures include capping fees and mandating faster processing times, targeting greater affordability and efficiency for businesses and individuals conducting cross-border transactions.

“With the implementation of PSDIR-9, we have introduced guidelines to curb excessive charges, requiring commercial banks to adhere to capped fees,” said Kazembire Zemburuka, BoN’s Director of Strategic Communications and International Relations, in an interview with *The Brief*.

The BoN initiatives are designed to ease financial burdens on Namibian citizens and businesses while fostering transparency and fairness in financial transactions.

In addition to regulating fees, BoN is addressing delays in cross-border payments, particularly within the Common Monetary Area (CMA), which includes South Africa. A new directive requires that inward payments from CMA countries reach Namibian recipients within two business days.

Zemburuka explained that cross-border electronic fund transfers (EFTs) will temporarily use the SWIFT network under PSD-9 while the BoN collaborates with CMA member countries to simplify low-value electronic fund transfers.

“Our collaborative efforts seek to reduce transaction costs and wait times, ultimately benefiting consumers and businesses,” he said.

Looking forward, BoN plans to launch an instant payment system in September 2025. The real-time system will facilitate rapid transfers across bank accounts, wallets, and financial platforms, a step the bank says will modernize Namibia’s financial sector and strengthen its role in regional trade.