Bank of Namibia

BoN makes money in challenging times

BoN makes money in challenging times

Tujoromajo Kasuto The Bank of Namibia has delivered a strong net operating surplus and paid a dividend which is 42 percent higher compared to 2020 amounting to N$413.7 million. Despite the low interest rate environment that persisted in 2021, the Bank recorded a higher surplus in 2021 than in 2020 and declared a record high dividend. The Board of BoN in consultation with the Ministry of Finance has decided to use a part of the dividend as seed capital for the newly created Sovereign Wealth Fund. However, the bank experience a decline in net income mainly due to low interest…
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BON anticipates significant economic growth in 2022

BON anticipates significant economic growth in 2022

Tujoromajo Kasuto NAMIBIA’S economic performance was expected to improve slightly during 2021 and improve further in 2022, supported by better growth for the mining industry and most tertiary industries, Bank of Namibia’s (BON) economic outlook for December 2021 is revealing. The domestic economy is projected to grow by 1.5 percent and by 3.3 percent in 2021 and 2022 respectively, representing an improvement from 8.5 percent contraction in 2020. The latest projection of 1.5 percent growth for 2021 represents a marginal improvement, compared to 1.4 percent published in the August 2021 Economic Outlook. Risks to domestic growth remain dominated by the…
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Glimmer of hope for domestic economy in second quarter of 2021

Glimmer of hope for domestic economy in second quarter of 2021

Tujoromajo Kasuto NEDBANK Namibia’s Executive for Retail and Business Banking, Richard Meeks, says the Bank of Namibia (BON) has recently given a glimmer of hope that during the second quarter of 2021, activities in the domestic economy have improved, driven by better performance in the tertiary industries. He further notes that the performance reflected in retail for clothing, furniture and vehicles sales that declined due to weak demand, given reduced disposable income that was further compounded by covid-19 measure put in place to curb the spread of the virus. However, he says improvements in the tertiary industries where observed in…
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BoN declares N$278m dividend

BoN declares N$278m dividend

Kandjemuni Kamuiiri The Bank of Namibia on Wednesday declared a N$278.2 million dividend for the 2020 financial year to the State Revenue Fund, lower than the N$399 million declared prior year. This comes as the apex bank declared a N$532 million surplus for the period under review. “The financial performance of the Bank in 2020 was negatively impacted by low interest rates in the global markets as a result of the COVID-19 pandemic; nonetheless the Bank still recorded a notable surplus albeit lower in comparison with 2019. As a result of the COVID-19 pandemic, the year 2020 was characterised by…
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SME bank – yet another money-loss debacle . . .when will we learn?

When will Namibia learn to guard its wallet better? We allow ourselves to be pick-pocketed far too often. This time, the named culprit is Enoch Kamushinda, a director of the now-defunct SME Bank. But, the real culprits are all who ignored a Bank of Namibia (BoN) warning and still allowed a man with shaky business histories in several countries to have the keys to a bank full of Namibian taxpayer dollars. These people must be named, shamed, held accountable. They should be in the dock alongside their criminal buddy. All who took quiet ‘loans’ from Kamushinda or smoothed the way…
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In times of trouble, manage your money better

In times of trouble, manage your money better

Samuel Linyondi The Bank of Namibia's latest Economic Outlook expects the Namibian economy to fall into a deeper contraction during 2020, mainly due to the devastating impact of COVID-19 across all sectors. This means that as we conclude the year, we will be faced with a few challenges. For some, it means having taken a drop in their salary, while for others, a total loss of income. Few are fortunate enough to still have a job and have their income unaffected. What these times of uncertainty have taught us is that having savings for emergency situations is critical. As we…
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FIC flags N$17 billion worth suspicious transactions

FIC flags N$17 billion worth suspicious transactions

Staff Writer Financial Intelligence Centre (FIC) during its financial year ending year ended 31 March 2020 says it flagged transactions worth N$17 billion which it suspects to be proceeds of crime and are now subject to investigation by law enforcement agents. During the period under review, the centre, according to its annual report contributed to 84 investigations conducted by various law enforcement authorities. “The top five underlying predicate offenses investigated include fraud, corruption, poaching, dealing in drugs, illegal deposit taking/pyramid schemes and money laundering. Furthermore, investigations by these law enforcement agencies with assistance of the Office of the Prosecutor General…
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BoN forecast 7.8% domestic economy contraction

BoN forecast 7.8% domestic economy contraction

Staff Writer Bank of Namibia (BoN) has forecasted the domestic economy to contract by 7.8 percent in 2020 before a moderate recovery of 2.1 percent in 2021. “The COVID-19 pandemic has caused domestic economic activity to contract severely during the first six months of 2020. The slump was reflected in sectors such as mining, agriculture, manufacturing, construction, tourism, wholesale and retail trade as well as transport and storage. Activity in the telecommunication and local electricity generation subsectors, however, showed some improvements in the first half of 2020 compared to the same period in 2019,” BoN Governor Johannes !Gawaxab announced on…
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Commemorative banknote to start circulating

Commemorative banknote to start circulating

Staff Writer The N$30 commemorative banknote launched on Independence Day by the Bank of Namibia shall be available to the public as from Friday, 15 May 2020, the apex bank has announced. “ The public is also hereby informed that the N$30 commemorative banknote will only be issued at the tills, inside all commercial bank’s branches and not at the Automatic Teller Machines (ATMs),” BoN Deputy Director: Corporate Communications, Kazembire Zemburuka said. “To obtain the N$30 commemorative banknote from commercial banks, one will have to exchange an equivalent amount of the current family of banknotes or coins, for the banknote.”…
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Gawaxab appointed BoN Governor

Gawaxab appointed BoN Governor

Staff Writer President Hage Geingob on Tuesday appointed veteran financial guru, Johannes Gawaxab as the new Governor of the Bank of Namibia effective June 1, 2020. “I congratulate you Johannes Gawaxab on your appointment and appreciate your willingness to bring your talents and experience of the financial services sector towards our tireless effort in building a united inclusive and prosperous Namibian house,” the President said. The move by Geingob to appoint Gawaxab to the helm of the apex banks comes after the head of state side-stepped long serving Bank of Namibia Deputy Governor, Ebson Uanguta who has been in his…
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