The Namibia Deposit Guarantee Authority is in the Otjozondjupa Region to educate commercial banks and community members on the types of protection they offer depositor funds.

Before deciding to put their trust in banks, most people worry whether their money will be safe.

The primary mandate of the Namibia Deposit Guarantee Authority is to administer the Deposit Guarantee Scheme, which covers more than 90% of current depositors across the country.

Under the scheme, NDGA's Operations Manager, Petrus Shifotoka, said they will compensate depositors up to N$25,000 in the event of bank failure.

"At some point, we have seen banks fail for many reasons, I mean, it wasn't so long ago when we learned about banks failing in the US. We all know what happened in 2008 when a whole lot of banks were failing, so as long as there is a regulator, the central bank, that is making sure that bans are well run and well capitalised, eventually one or two bans will fail."

The NDGA is designed to mainly protect small depositors, such as small business owners or individuals banking with either of the eight commercial banks.

By law, all Namibian banking institutions and branches of foreign banks and building societies are required to be members of the Deposit Guarantee Scheme and pay annual premiums to the Scheme.

NDGA officials will be travelling to Otavi, Groofontien, Okakarara, and Okahandja to educate inhabitants on the mandate of the authority, which started operations in 2020.