The study aims to examine problems that hinder the creation of a sustainable Microfinance industry in Namibia. It looks into the assertion that certain Microfinance Institutions (MFIs) have problems that hinder them from being able to service clients and still be able to remain profitable. A Microfinance Institution (MFI) is defined as an institution that provides financial services to people and small and micro enterprises that do not have access to commercial bank loans. Categories are a credit union, savings and credit co-operatives (SACCOs), non- Governmental Organizations (NGOs), self-help organizations or specialized banks (Mushendami, Kaakunga, Amuthenu-Iyambo, Ndalikokule & Steytler, 2004). The study looks at three critical aspects of operational, regulatory and legislative framework. The current regulations that are in place are administered by the Namibia Financial Institutions Supervisory Authority (NAMFISA) and the Bank of Namibia, for the protection of clients against unscrupulous practices by MFIs. Out of 347 MFIs, a purposeful sample population was drawn and 34 Questionnaires administered due to time and financial constraints. The Questionnaires were distributed to MFIs and individuals in the industry. From these 25 responses were received during the survey. A descriptive statistical analysis was used in deciphering the data. The results are that the Namibian MFIs are new, but out of 11 factors, four were outliers, being the challenges of fraud, consumer education, lack of resources and high costs. The main recommendation is that the MFI industry must establish a fund through charging levies for client education and to look at the transparency of operations and costs to encourage both MFIs and clients to better understand the terms of engagement. Further recommendations include ensuring that MFIs develop products which meet the needs of clients in urban and rural context. Also to address the issue of lack of funding in the form of a strategy to arrange for exit strategies after donor withdrawal, in order for MFIs to survive based on their internal revenue base. Lastly, the regulatory environment in Namibia needs to be improved with the government introducing clearer principles for market participants. The government needs to become an enabler for the provision of financial services. / Thesis (MBA)-University of KwaZulu-Natal, Durban, 2012.

Thesis (MDF)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: This study focuses on the factors that hinder the growth of the microfinance industry in Namibia. The actual issues of the sector are not known as not much research has been undertaken on it. However, it is possible to establish the constraints that limit the growth of the microfinance environment in the country. The study presents the identified limitations with associated solutions as experienced in different countries and reported by various authors and academics. The desired situation would be for the microfinance sector to operate effectively by serving the poor and unemployed but economically active people. Although this is not the all encompassing solution to the plight of the rural and urban poor, it is, however, the beginning at the attempt to move out of poverty. The questions that the respondents answered were designed specifically to clarify which sector of the low income section of society that was accessing the loans available on the market. This fact will enable policymakers to focus on resolving the hindrance that will produce the most results than taking haphazard actions that bring minimal results. The results could also be useful to microfinance providers in that they can use the information to identify business opportunities for the diversification of the products they offer. Finally, the constraints hindering the growth of microfinance such as the restrictive regulatory environment for one are not unique to Namibia. Hence, the experience and solutions from other countries are available for study. However, the local industry would have to initiate their own solutions to match and meet local conditions. / AFRIKAANSE OPSOMMING: Hierdie studie fokus op die faktore wat die groei van mikrofinansies in Namibie belemmer. Die werklike probleme is nie bekend nie omdat baie min navorsing nog in hierdie verband gedoen is. Dit is egter wel moontlik om die beperkinge tot groei van die mikrofinansies industrie in Namibie te bepaal. Die studie bied 'n oorsig van bekende beperkinge en moontlike oplossings soos ervaar in verskillende lande en soos gerapporteer deur verskeie outeurs en akademici. Die ideale situasie sal wees dat die mikrofinansies sektor effektief funksioneer deur die armes en werkloses, maar ekonomies aktiewe, gemeenskap te dien. Hoewel dit nie 'n alomvattende oplossing bied vir die behoeftes van plattelandse en stedelike armes nie, is dit egter 'n poging om hierdie mense uit armoede te lig. Die vrae wat respondente moes antwoord het spesifiek gepoog am te bepaal watter sektor van die samelewing die lenings wat beskikbaar is in die mark gebruik. Hierdie kennis sal wetgewers in staat stel om te fokus op probleme wat die grootste struikelblokke is, eerder as om lukraak probleme aan te spreek met minimale resultate. Die bevindinge mag ook van belang wees vir mikrofinansies voorsieners wat die inligting kan gebruik om besigheidsgeleenthede te identifiseer om sodoende hulle produk-reeks te diversifiseer. Laastens, die beperkinge in die mikrofinansies sektor soos die beperkende regulatoriese omgewing is nie uniek tot Namibie nie. Dus, die oplossings vanuit ander lande kan toegepas word in Namibie. Die Namibiese industrie sal egter hulle eie oplossings moet vind om die plaaslike omstandighede die hoof te bied.

Thesis (MDF)--University of Stellenbosch, 2010. / The level of poverty in Namibia is relatively high. Access to finance is cited as one of factors hampering economic growth and poverty alleviation. Microfinance is seen as one of the effective tools that can address poverty alleviation by engaging the poor in sustainable economic activities. Microfinance services have existed in Namibia since the late 1990s, yet they have not attained growth. The main providers of microfinance services consist mainly of Micro-lenders, Non-Governmental Organizations (NGOs), Savings and Credit Cooperative Societies (SACCOS), Public Financial Institutions (PFI) and to a less extent Commercial Banks (CB). This research report aimed to study and identify the problems that impact on the growth of microfinance finance institutions (MFIs) in Namibia. The findings of this study revealed that lack of regulatory and policy framework, lack of capital and high operational costs were the main problem areas hampering the growth of MFIs in Namibia. The study made recommendations which are aimed at enhancing the growth of microfinance institutions.