WINDHOEK—In response to significant losses in foreign currency, Namibia is launching a Trade Verification System (TVS). According to a media release from the Namibia Revenue Agency (NamRa) issued on Monday, an investigation by the Financial Intelligence Centre (FIC) found that Namibia incurred losses ranging from N.dollars 3 billion to N.dollars 4 billion over a three-year period. This was attributed to the absence of a system that reconciles trade declarations with corresponding financial transactions.

According to Namibia Press Agency, The FIC spearheaded a Public-Private Partnership investigation into these losses, which ultimately recommended the creation of a national framework for reconciling trade data with financial transactions. This led to the joint launch of the TVS by NamRa and the Bank of Namibia on 17 November 2023. The system aims to increase efficiency, ensure compliance, deter illicit capital flow, and streamline trade operations.

The release also highlighted that Namibia’s trade has largely depended on manual paperwork in recent years, a practice that opens the door to errors, fraud, and non-compliance. It noted that the international trade system is particularly susceptible to exploitation for activities such as fraudulent practices, capital flight, and tax evasion, including Trade-Based Money Laundering.

The TVS is designed to automate trade procedures, reducing the reliance on manual processes. It will also advance and authenticate documentation, provide a single source of verified data for both customs and financial services, and decrease operational costs while ensuring regulatory compliance.

Namibia joins the ranks of early adopting African countries to implement a TVS.