Bank of Namibia – Windhoek Observer

17 Oct

Banks invested N$980m in bonds

ObserverObserver MoneyBank of Namibia, Energy Agency (IEA), Johannes !Gawaxab

CHAMWE KAIRA Local banks have issued green bonds worth N$980 million in the last six years, figures presented at a Bank of Namibia green financing meeting have shown. Bank Windhoek issued the country’s first green bond in 2018 and a sustainability bond in 2021, raising N$227 million to fund renewable energy, sustainable agriculture, and biodiversity projects. In 2022, Standard Bank Namibia issued a green bond to raise N$400 million for solar and wind energy projects, while RMB Namibia, in partnership with FNB Namibia, raised N$353 million for green buildings and renewable energy initiatives. Central bank governor Johannes !Gawaxab said the…

08 Oct

Financial system stable amid moderate domestic economic conditions

ObserverObserver MoneyBank of Namibia, Financial System Stability Committee, Gross Domestic Product (GDP), Johannes !Gawaxab

Matin Endjala Namibia’s financial system remains stable and resilient despite slowing economic growth and global challenges, according to the Financial System Stability Committee (FSSC) report released on Tuesday. According to the report, factors like drought, low diamond prices, and weak global demand will cause Namibia's Gross Domestic Product (GDP) growth to slow to 3.1% in 2024. Global factors continue to primarily influence risks to the domestic economy. The FSSC, which includes the Bank of Namibia and the Namibia Financial Institutions Supervisory Authority, met on 3 October to assess the financial system’s resilience. Bank of Namibia Governor Johannes !Gawaxab said: “The…

03 Oct

Inflation expected to stabilise at 4.7%

ObserverObserver MoneyBank of Namibia, Monetary Policy Committee (MPC)

CHAMWE KAIRA Simonis Storm stockbroker and wealth management has projected that inflation will stabilise at approximately 4.7% year on year by the end of this year. Furthermore, Simonis expects an additional 25 basis point rate cut at the December Monetary Policy Committee (MPC) meeting, bringing the year-end repo rate to 7.25%. The central bank is likely to adopt a cautious stance, closely monitoring the effects of this monetary easing before considering further policy adjustments, the firm noted. The current repo rate in Namibia stands at 7.50%, with the prime lending rate at 11.25%. Simonis said that although these rates remain…

02 Oct

!Gawaxab calls for innovation with stability in financial transformation

ObserverObserver MoneyBank of Namibia, Johannes !Gawaxab, Modernising Namibia’s Financial Landscape for a Prosperous Future

Martin Endjala The governor of the Bank of Namibia (BoN), Johannes !Gawaxab has called for adaptability and innovation in Namibia’s financial sector, urging the country to embrace technological advancements while maintaining stability. !Gawaxab made this statement on Tuesday during a lecture at the University of Namibia (UNAM) titled "Modernising Namibia’s Financial Landscape for a Prosperous Future." The lecture provided a platform to outline the bank’s strategic transformations to foster a financial system that promotes inclusivity, resilience, and sustained growth. "Success will depend on our ability to stay ahead of the curve, be adaptable, and foster innovation without compromising stability,” he…

10 Sep

BoN pledges to address soaring banking fees

ObserverNational NewsBank of Namibia, Dina //Gowases, Sandra Garises

Martin Endjala The Bank of Namibia (BoN) has committed to addressing the country's concerns about high banking charges amid public outcry. Sandra Garises, the bank’s acting spokesperson, told the Windhoek Observer last week that the bank is aware of the public outcry concerning high banking charges. “The bank is aware of the nationwide outcry about fees and charges and as the regulator of banking institutions, the bank has an obligation to ensure that fees and charges payable by customers for services rendered by banking institutions are determined in the public interest and are proportionate with the cost incurred in providing…

05 Sep

International reserves rise to N$60.8 billion

ObserverObserver MoneyBank of Namibia, Customer Foreign Currency (CFC), Net Foreign Assets

CHAMWE KAIRA The stock of international reserves rose by 5.5% to N$60.8 billion at the end of July, the Bank of Namibia announced. The increase in international reserves was on the back of higher SACU receipts, as well as Customer Foreign Currency (CFC) placements. This level of foreign reserves translated into 4.1 months of import cover, exceeding the international benchmark of 3 months. Notably, the import cover, excluding imports of oil exploration and appraisal activities, stood at 4.9 months at the end of July, relative to 4.6 months recorded at the end of June. Furthermore, the banking industry liquidity position…

05 Sep

Inflation to stabilise at 4.9%

ObserverObserver MoneyBank of Namibia, Repo rate, Simonis Storm Security

CHAMWE KAIRA Simonis Storm Security projections suggest that inflation will stabilise at around 4.9% by the end of the year. The Bank of Namibia's monetary policy committee decided to implement a 25 basis point rate cut at its last meeting, reducing the repo rate to 7.50% and the prime rate to 11.25%. Simonis said although these rates remain relatively elevated, the reduction offers some relief to Namibian households and businesses by lowering borrowing costs. “Despite this rate cut, we anticipate that private sector credit extension growth will remain modest in the near term. This is due to the lag effect…

22 Aug

Car sales exceeded pre-pandemic levels

ObserverObserver MoneyBank of Namibia, Simonis Storm Securities

CHAMWE KAIRA Simonis Storm Securities believe that the 25 basis point repo rate cut by the Bank of Namibia is unlikely to significantly impact vehicle sales in the short term, given that current sales figures have already exceeded pre-pandemic levels, reflecting a resilient market recovery. The firm noted that the second-hand vehicle market has gained considerable traction, becoming an attractive option for buyers amid economic prudence. This trend suggests a shift in consumer preferences towards more cost-effective alternatives, especially in an environment where luxury vehicle purchases remain restricted. Simonis noted the deceleration in motor vehicle price inflation suggests some relief…

15 Aug

Repo cut to revive consumer spending

ObserverObserver MoneyBank of Namibia, Economist Halleluya Ndimulunde

CHAMWE KAIRA Economist Halleluya Ndimulunde believes that a reduction in the repo rate generally leads to lower borrowing costs for both households and businesses. The Simonis Storm Security economist said in the aftermath of Bank of Namibia cutting the interest rate by 25 basis points down to 7.50%, that this may encourage a revival in private sector credit extension, which has been subdued, as confidence in a less restrictive monetary policy environment grows. “Overall, this rate cut is likely to stimulate economic activity by improving access to credit, thereby supporting increased spending and investment across the economy,” said Ndimulunde. Additionally,…

17 Aug

Repo rate remains unchanged at 7.75 percent

ObserverMainBank of Namibia, Johannes !Gawaxab, Repo rate remains unchanged at 7.75 percent

Martin Endjala Following a comprehensive review of global, regional and domestic economic developments, the Bank of Namibia Monetary Policy Committee decided to maintain the current repo rate at 7.75 percent for the next two months, while also ensuring that stable platforms are created to grow the economy. During the announcement yesterday in Oshakati, Bank of Namibia Governor, Johannes !Gawaxab, responded to concerns and the impact the repo rate has on the economy and unemployed individuals. He said that the repo rate has a negative and positive impact on people’s lives and the economy, however, he is of the view that…