Shafudah says Namibia has no gold reserves, but foreign currency

Finance minister Ericah Shafudah says Namibia currently does not hold gold as part of its foreign exchange reserve assets.Shafudah said this last week at the National Assembly when she responded to a question from Popular Democratic Movement (PDM) leader McHenry Venaani.Venaani had cited international reports stating that Namibia is among the countries with large gold reserves, alongside the United States and other nations worldwide.Shafudah explained that while Namibia has two operational gold mines, gold is not currently held as a reserve asset.“These companies, especially in 2024, have produced gold. For example, B2Gold produced an estimated 198 000 ounces, while Navachab recorded a historical output of about 130 000 ounces," the minister said. "So, because we are aware that gold is a strategic reserve asset, the Bank of Namibia has conducted a study on whether gold should become part of the foreign exchange reserve assets," Shafudah explained. "The outcome of that study is still to be discussed with the Bank of Namibia, as we need to assess the implications,” she noted. Access to gold surplusesShafudah added that countries that have gold as part of their foreign exchange reserve assets have access to gold surpluses and ‘have it all’."But for now, we are proceeding cautiously. What we currently have in Namibia are other instruments that are equally effective," the minister said. "They can also act as shock absorbers. These instruments are foreign currency-denominated.”She added that Namibia holds cash reserves and money market instruments.“I just wanted to put that on record to say that the questions raised are indeed pertinent. And if we had gold as part of the foreign exchange reserve assets, I would have been able to respond to each of the questions put before this August House,” she said.Research done In response, Venaani said he always backs up his points with research and asserted that the minister’s position should be reconsidered by her ministry.“I was looking at international sources, the United States and countries around the world, including in Africa, that have gold," Venaani said. "Namibia was cited as one of the countries with that kind of gold reserve. It is not something I thumbsucked, it is something I researched,” he said.“Honourable minister, what is important to me and to the country is the fact that we have gold mines, we have reserves, and every Namibian... must benefit from them."Yet, we have been net producers of gold for a number of years, while countries that do not have a single gold mine hold gold reserves in their central banks.”Taking full advantageVenaani further questioned whether government is aligning its policy to ensure that Namibians benefit from their natural resources, including through investments in national gold reserves.“Even if a mine produces, say, a hundred ounces per year, we could say at least ten of them should be allocated to the state, so that the state can save them. Because countries with currencies linked to gold often have strong currencies. We are a country with that kind of resource, but we are not taking full advantage of it,” he argued.Exploring it Shafudah, in response, said she, too, had conducted research.“Any one of us can go to the Central Bank of Namibia today and ask if they are holding gold on behalf of the government. They will say, ‘Not now, but we are exploring it,’ because of the value attributed to these strategic considerations,” she said.“So, we are all aligned, and that is why I also indicated that the Bank of Namibia has carried out a study that we still need to discuss," she stressed, adding that Namibia does "not have a refinery that would allow us to process and convert the gold into usable reserves, so that then the bank can hold those resources.”The minister underlined that government is not hiding anything and will continue to present all relevant information in parliament.nikanor@nmh-hub.com.na

Shafudah says Namibia has no gold reserves, but foreign currency

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Namibian Sun 2025-06-26

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Shafudah says Namibia has no gold reserves, but foreign currency

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Namibian Sun 2025-06-26

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