Collateral in Namibia : A Plea for Umbrella Regulation

We argue for comprehensive legislation in the field of law covering collateral in credit transactions in Namibia. We look at what loopholes and bottlenecks are present in the regulation of collateral and what benefits it brings to have firm legislation in place to govern collateral in financial sectors. As it currently stands, the law regulating collateral in Namibia is uncodified, not very clear, thus not easily understandable; it is dispersed over different statutes and common-law rules; and it lacks uniformity and coordination.Credit markets provide essential support for individuals and businesses to be successful in virtually all countries. Without financial support in the form of credit to individuals and businesses, monetary capital growth in the country is limited. Financial institutions, especially the commercial banks, play a vital role in economic development.The basic question concerns the best way to shape laws on collateral and remove obstacles to the free flow of credit in the economy. To answer this question, we ordered topics in this contribution as follows. In the first section, we reflect on the role of collateral in finance and the overall economy. The second section reviews current issues regarding the regulation of collateral in Namibia. The next section is the heart of this contribution: It evaluates the country's current regulation of collateral and pleads for the regulation of collateral in Namibia through the adoption of a comprehensive legislation in the form of a restatement of the existing rules on collateral. For the sake of realism, the reasoning that drives this plea includes consideration of the relative merits and demerits of umbrella legislation