Chamwe Kaira
The Bank of Namibia (BoN) declared a dividend of N$200 million to the government for the 2025 financial year, down from N$720 million in 2024.
The decline comes despite the central bank maintaining price and financial stability.
BoN governor Ebson Uanguta said the bank achieved a 97.6% strategy execution rate in 2025 under its 2025–2027 Strategic Plan.
The annual report said 2025 was marked by global uncertainty, with rising risks, changing technology and volatile commodity prices affecting central banks.
Namibia remained exposed to external shocks such as changes in trade, demand and capital flows. Slower global growth also affected domestic performance.
Inflation averaged 3.5% in 2025, down from 4.2% in 2024. The decline was linked to lower transport costs and a stronger currency. Food inflation remained higher at 5.2%.
The repo rate stood at 6.50% by December 2025, down from higher levels in previous decades.
The bank said it has moved towards market-based tools, including eurobond issuance.
Namibia issued US$500 million in 2011 and US$750 million in 2015 to support reserves.
The report noted that reserves were managed to maintain liquidity and stability. The 2015 eurobond was repaid in 2025 through prior planning and a sinking fund.
The bank has also used asset swaps with local investors to build foreign reserves.
Risks to the outlook include global trade tensions, geopolitical conflicts and tighter financial conditions. These could affect supply chains, prices and inflation.
Banking sector indicators remained stable. Capital adequacy rose to 17.3% from 17.0%.
The liquidity coverage ratio declined to 145.6% from 163.6% but stayed above requirements.
Non-performing loans dropped to 4.3% from 5.6%, while the net stable funding ratio improved to 116.5% from 111.5%.
Currency in circulation increased by 5.9%, rising to N$5.9 billion, showing continued use of cash in the economy.
