Digital Identity, AI, and Microfinance are Catalysts for Inclusive Growth

MEDIA RELEASE                              

Issued: 3 September 2025

In today’s rapidly evolving digital landscape, financial inclusion is no longer just about access; it is about empowerment, resilience, and opportunity. Globally, the convergence of digital identity systems, artificial intelligence (AI), and microfinance is transforming how individuals interact with financial services, particularly those previously excluded from formal banking.

Digitalisation is the foundation of financial Inclusion

Countries like Singapore have demonstrated how digital infrastructure can revolutionise financial access. Through platforms like Singpass and Myinfo, over 4.5 million users conduct more than 350 million secure transactions annually, accessing loans, managing portfolios, and sharing verified data with banks seamlessly. This model has become a global benchmark for responsible digital identity deployment, proving that digitalisation is the bedrock of inclusive finance.

Microfinance can turn personal finance into business capital

Microfinance is often misunderstood as a last resort for the poor. In reality, it is a gateway to entrepreneurship. The AFI Special Report demonstrates how digitised microfinance enables individuals to develop financial portfolios that attract formal banking institutions. This transformation enables:

• Creation of digital financial footprints

• Access to credit scoring and compliance tools

• Integration into national financial ecosystems

Microfinance enables individuals to convert personal investment into business capital, whether for starting a small enterprise or investing in livestock to initiate a farming venture.

African Lessons: Rwanda's economic resilience

Rwanda's financial sector offers a powerful example of inclusive growth. According to the World Bank's 2025 Economic Update, the country's GDP grew by 8.9% in 2024, up from 8.2% in 2023. This builds on earlier progress, where GDP rose from 4.7% in 2013 to 7.0% in 2014, driven by expanded access to financial services. The report also notes:

• Over 500,000 new jobs created year-on-year

• Services sector regaining its role as the largest employer

• Agriculture employs 40% of the workforce and contributes 27% to GDP

Rwanda’s success underscores the importance of diversified financial systems and inclusive policy frameworks.

Namibia's commitment to Empowering Society, Enabling Growth

Namibia is stepping up. The 2025 AFI Global Policy Forum, hosted by the Bank of Namibia, is themed “Empowering Society, Enabling Growth”. It highlights Namibia’s progress in SME financing, consumer protection and digital inclusion.  However, as services become digitised, cybersecurity must scale in tandem. Protecting digital transactions and personal data is crucial for maintaining trust and facilitating safe innovation.

Letshego & MTC: A Practical Solution for Namibians

Under NAMFISA’s regulatory sandbox, Letshego Micro Financial Services Namibia and MTC have launched Taamba Maris, a product designed for inclusive, responsible lending. With loan amounts from N$100 to N$1,500, AI-driven approvals in under 60 seconds, and USSD functionality for rural access, Taamba Maris is tailored for first-time borrowers, micro to small business owners and aspiring farmers investing in livestock.

Its risk-inclusive pricing model of 18% (compared to 40% from informal lenders) and one-loan-at-a-time rule ensure financial health and trust. This partnership serves as a blueprint for how telco-finance collaborations can extend reach and impact.

Moreover, Letshego Holdings Namibia, the parent company of Letshego Micro Financial Services, has reinforced its commitment to financial inclusion by sponsoring N$200,000 toward the Financial Inclusion Global Policy Forum in Swakopmund, demonstrating collaboration not just in innovation, but in advocacy.  We believe that building inclusive financial systems that empower individuals to transform access into opportunity is not the sole responsibility of governments or bank institutions, it is a collective mission. Corporates, innovators, and individual citizens across Namibia and Africa must unite in this effort. By working together to expand digital access, strengthen microfinance, and foster trust in financial ecosystems, we unlock the full potential of Africa’s entrepreneurial spirit.

For media inquiries, please contact:

Mrs. Ongame Mutorwa

Communications Manager

Tel: (+264) 81 255 3658

E-mail: OngameM@Letshego.com