Staff Writer
The governor of the Bank of Namibia, Ebson Uanguta, and the governor of the South African Reserve Bank, Lesetja Kganyago, have signed a revised memorandum of understanding (MoU) in Pretoria, South Africa.
The signing took place during Uanguta’s courtesy visit to the South African Reserve Bank and strengthens cooperation between the two central banks.
The new agreement replaces the earlier memorandum signed on 11 September 2015.
The revised MoU reflects changes in the financial sector in both countries.
It recognises stronger supervisory roles for central banks, the development of resolution frameworks and the growing complexity of financial institutions that operate across both Namibia and South Africa.
The agreement also recognises the close links between the financial markets and economies of the two countries.
The memorandum sets out a framework for cooperation in central banking, financial supervision, regulation and the resolution planning of financial institutions and groups that operate across borders.
Areas of cooperation include strengthening regional integration, improving coordination between monetary and fiscal policy and working together to support financial stability. The agreement also covers cooperation on capacity building and cross-border supervision.
The MoU aims to improve coordination between the two regulators, strengthen crisis preparedness and protect depositors while maintaining financial stability in both countries.
The Bank of Namibia said the agreement supports cooperation and policy coordination between the two central banks in the regional financial system.
The central bank also noted that the agreement does not create binding legal obligations and does not affect the statutory independence of either institution.
Uanguta said the agreement reflects the long-standing relationship between the two central banks and their shared commitment to financial stability.
“In an increasingly complex global environment marked by digital transformation and emerging risks, regional cooperation is essential to strengthening resilience and safeguarding financial stability,” said Uanguta.
