Finanzgruppe Sparkassenstiftung


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Restructuring of Namibia Post Office Savings Bank

Namibia Post Office Savings Bank (NPOSB)
Origin of funding
German Federal Ministry for Economic Cooperation and Development (BMZ)
Dates (start/end)

1994 - 2006
1 international long term expert, 10 short-term experts


Project description

The project aimed at assisting NPOSB to offer secure and attractive savings and other banking services at reasonable cost on a permanent, economically viable basis to its primary target groups – the lower and medium income groups, particularly in rural areas of Namibia.

A major project achievement to meet this target was the transformation of the NPOSB from a sub-division of NamPost’s finance department into an independently operating profit centre within the Namibia Post Ltd. Today NPOSB is one of two divisions within NamPost. Within the scope of the project the according structures, information and management systems as well as a new IT programme have been introduced.

Based on a market analysis new savings products have been introduced that have contributed to an considerable growth. While keeping the low average account balances of approx. 1,300 N$ (i.e. approx. 175 EUR) and continuously serving the lower end of the market NPOSB acquired more than 160,000 new savers and increased its market share from 16 to 22%.

A feasibility study on the introduction of the lending business has worked out a considerable demand that is not yet met. At the same time it was underlined that the extremely low density of Namibia’s population is going to cause high transaction cost. 


Services provided

  • Institutional strengthening of NPOSP with implementation of a new organisational structure, managerial and reporting instruments
  • Introduction of new savings products
  • Feasibility study on the introduction of lending business
  • Training with regard to management, leadership, process design
  • Implementation of a profit centre calculation, Management information system, customer segmentation