Bank of Namibia deepens strategic dialogue with diplomatic community
Diplomatic corps
The meeting provided an opportunity to deliberate on broader macro-economic issues of mutual concern.
The Bank of Namibia (BoN) this week hosted its annual diplomatic stakeholder engagement, a key platform for fostering dialogue with heads of mission, multilateral institutions, and development partners. The engagement was convened against the backdrop of increasing global uncertainty and complex economic shifts, with BoN Governor Johannes !Gawaxab delivering the keynote address.
In his remarks, !Gawaxab welcomed the diplomatic community and expressed gratitude for their continued interest in the bank’s work. He highlighted the emergence of a new world order defined by evolving geopolitical developments, intensified trade tensions, and rapid technological advancement.
These global dynamics, he noted, are challenging traditional frameworks surrounding globalisation, multilateralism, and market openness, calling for enhanced institutional agility and strategic foresight.
“Although it is impossible to predict the future with certainty, the combined speed of these changes underscores the necessity for institutions such as central banks to continue to serve as guardians of stability in an environment characterised by volatility. As a central bank, we remain anchored to our mandate of price stability and financial stability,” !Gawaxab said.
!Gawaxab noted that inflation in Namibia remains well contained, supported by the bank’s prudent monetary policy stance. “The policy interest rate has been reduced by a cumulative 100 basis points since August 2024, contributing to a marked decline in inflation from 5.4% in January 2024 to 3.6% in April 2025.”
Regarding financial stability, he said the banking sector continued to demonstrate resilience, with sufficient capital buffers and liquidity to absorb shocks and support credit extension to the real economy.
Reflecting on the bank’s strategic direction, !Gawaxab reiterated the institution’s commitment to building a smart central bank, fostering an inclusive and resilient financial system, and embracing a new economy.
He highlighted key reform initiatives, including the establishment of Namibia’s first Central Securities Depository to modernise financial markets, and the launch of the Instant Payment Programme – a transformative effort to deliver fast, affordable and secure payments to all Namibians, particularly the underserved.
The meeting also provided an opportunity to deliberate on broader macroeconomic issues of mutual concern. Attendees engaged in discussions on rising global political uncertainty and its implications for capital flows and investment decisions in emerging markets. The declining inflationary pressures in the country were evident in the latest inflation print, especially in relation to cost-of-living challenges.
Furthermore, the engagement addressed the operationalisation of Namibia’s Sovereign Wealth Fund as a strategic instrument for long-term fiscal sustainability and intergenerational equity.
In his remarks, !Gawaxab welcomed the diplomatic community and expressed gratitude for their continued interest in the bank’s work. He highlighted the emergence of a new world order defined by evolving geopolitical developments, intensified trade tensions, and rapid technological advancement.
These global dynamics, he noted, are challenging traditional frameworks surrounding globalisation, multilateralism, and market openness, calling for enhanced institutional agility and strategic foresight.
“Although it is impossible to predict the future with certainty, the combined speed of these changes underscores the necessity for institutions such as central banks to continue to serve as guardians of stability in an environment characterised by volatility. As a central bank, we remain anchored to our mandate of price stability and financial stability,” !Gawaxab said.
!Gawaxab noted that inflation in Namibia remains well contained, supported by the bank’s prudent monetary policy stance. “The policy interest rate has been reduced by a cumulative 100 basis points since August 2024, contributing to a marked decline in inflation from 5.4% in January 2024 to 3.6% in April 2025.”
Regarding financial stability, he said the banking sector continued to demonstrate resilience, with sufficient capital buffers and liquidity to absorb shocks and support credit extension to the real economy.
Reflecting on the bank’s strategic direction, !Gawaxab reiterated the institution’s commitment to building a smart central bank, fostering an inclusive and resilient financial system, and embracing a new economy.
He highlighted key reform initiatives, including the establishment of Namibia’s first Central Securities Depository to modernise financial markets, and the launch of the Instant Payment Programme – a transformative effort to deliver fast, affordable and secure payments to all Namibians, particularly the underserved.
The meeting also provided an opportunity to deliberate on broader macroeconomic issues of mutual concern. Attendees engaged in discussions on rising global political uncertainty and its implications for capital flows and investment decisions in emerging markets. The declining inflationary pressures in the country were evident in the latest inflation print, especially in relation to cost-of-living challenges.
Furthermore, the engagement addressed the operationalisation of Namibia’s Sovereign Wealth Fund as a strategic instrument for long-term fiscal sustainability and intergenerational equity.
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