Namibia is assessing the feasibility of launching its CBDC to enhance cross-border payments and financial inclusion, while the IMF urges caution. Simultaneously, Safaricom faces legal challenges over unfair dealer contracts. Namibia’s telecom sector is thriving, surpassing $43 million in data revenue, prompting significant investments in digital infrastructure. The country is also introducing visas on arrival to attract international investment and tourism, alongside various job opportunities across the region.
Namibia is considering the launch of its central bank digital currency (CBDC) to enhance cross-border payments and promote financial inclusion. Currently, the Bank of Namibia is in the initial phase of evaluating whether a CBDC can effectively address the nation’s payment issues, as advised by the International Monetary Fund (IMF) following a recent technical assistance mission. The IMF has expressed support for the research but warns against a hasty implementation, suggesting instead that Namibia should prioritize improving its present payment frameworks before venturing into digital currency complexities.
In line with these recommendations, the Bank of Namibia is engaging with central banks from Eswatini, Lesotho, and South Africa to discuss the potential of a CBDC to facilitate smoother cross-border transactions. Since introducing the idea of a digital Namibian dollar in 2022, their activities have primarily involved talks with neighboring banks. This cautious approach reflects challenges encountered by other African countries with CBDCs, such as Nigeria’s eNaira, which has struggled since its launch in 2021.
Meanwhile, Safaricom is facing a lawsuit from Goodweek Inter-Services Limited, which alleges the telecom giant imposed unfair contract terms that led to the non-renewal of Goodweek’s dealership agreement. This complaint is now in the High Court in Kenya and includes respondents like Vodafone Plc and Vodafone Kenya Limited. Goodweek contends that Safaricom set unachievable sales targets and engaged in practices that disadvantaged their dealers.
In recent months, Namibia’s telecom sector has witnessed significant growth, surpassing $43 million in data revenue during the third quarter of 2024. The industry now derives 70% of its mobile service earnings from data, a shift driven by cheaper data plans and increased smartphone usage. Such trends are indicative of broader changes across Africa, where demand for mobile internet is on the rise.
To address this data explosion, local telecom companies are investing heavily in infrastructure, such as nationwide 4G upgrades, while the government supports competition and innovation, facilitating better access to the internet. Despite ongoing challenges, such as rural connectivity, efforts are underway to leverage satellite internet and improve cybersecurity. This increase in data utilization stands to deliver economic benefits, enhancing job opportunities and access to critical services.
In a move to stimulate economic growth, Namibia will begin offering visas on arrival starting April 1, aiming to enhance its attractiveness to international investors and tourists. The initiative reflects the country’s commitment to reducing bureaucratic hurdles and fostering a more business-friendly environment.
Furthermore, various job opportunities are available across Africa, with companies like MTN and Paystack actively seeking talented professionals. MTN, for instance, is recruiting for positions focused on customer acquisition and compliance in North East Nigeria, while Standard Bank Group has multiple vacancies across the continent. These roles present exciting prospects for individuals looking to advance their careers in the burgeoning African tech landscape.
The ongoing exploration of a CBDC in Namibia reflects a methodical approach to addressing payment challenges and enhancing financial inclusion. Simultaneously, the lawsuit against Safaricom highlights ongoing tensions in the telecom sector over dealer agreements. Amid this, Namibia’s swift growth in data revenue underscores a broader trend across Africa toward digital services. By improving existing payment infrastructures and fostering innovation, Namibia aims to position itself as a leader in the digital economy.
Original Source: techpoint.africa
