Kwanza deal: Angola to cough up N$605 million

OGONE TLHAGEThe Banco Nacional de Angola (BNA) is making steady progress towards honouring a currency conversion agreement it signed with the Bank of Namibia (BoN) in September 2014, and will make a final payment of US$51.1 million (N$605.49 million at the current exchange rate) by June.This comes as the Angolan central bank sees US$500 million (N$5.92 billion at the current exchange rate) return to its coffers after British authorities released the money it had previously blocked, believing the cash to be the proceeds of theft.Speaking to Namibian Sun this week, central bank spokesperson Kazembire Zemburuka said there was never any doubt that BNA would honour its obligations to the BoN.The two central banks entered into a currency swap arrangement to the tune of approximately US$426.3 million in 2014.Giving an update on the matter, Zemburuka said a final payment was expected in the next two months.“The Bank of Namibia expects the final payment at the end of the second quarter, at the end of June 2018, as per the signed agreement between the two central banks which continues to be honoured,” said Zemburuka.According to him, BNA had recently made a payment of US$51.3 million, steadily reducing its obligations to the BoN.“As of now, BNA owes US$51.1 million after a payment of US$51.3 million was made on 28 March 2018, in line with the signed agreement,” said Zemburuka.Reuters reported that Angolan prosecutors had charged the former head of the central bank, Valter Filipe da Silva, in connection with the alleged fraud.Da Silva is the most high-profile person to be charged and publicly named since Angolan President João Lourenço took power last September, vowing to combat years of endemic graft.Angolan state media report that da Silva has been questioned by prosecutors and is prohibited from leaving the country.Britain’s National Crime Agency (NCA) said it welcomed the cooperation with Angolan authorities.“The necessary authority has now been provided for the monies to be returned to the Angolan authorities,” an emailed response to Reuters said.The NCA added that it had prevented the money from being transferred in December and January using new provisions within the Criminal Finances Act of 2017.Last year, the Angolan central bank promised to accelerate payments and honour its obligations to Namibia earlier.Zemburuka said at the time that BNA had paid US$20 million, which left the total debt outstanding at US$306 million (approximately N$3.8 billion).“The Bank of Namibia believes that BNA will honour this obligation agreed between the two institutions as it has done thus far,” Zemburuka told Nampa in 2015.The Angolan economic meltdown, precipitated by plunging by oil prices, negatively affected trade with Namibia generally, and specifically at the border town of Oshikango, which had been a hub of trade between the two countries.Once a bustling town with a dependency on foreign nationals, mostly Angolans, to support businesses activities, Oshikango is now a shadow of its former self. The currency swap agreement paved way for kwanza exchange at Namibian banks, but the deal was short-lived, as it was halted six months after it was signed. This was due to alleged irregularities at the Oshikango border post and heavy criticism by local economists and businesspeople, who argued that the deal had effectively driven Namibia’s economy into a liquidity crisis within the first five months of its implementation.Helao Nafidi mayor Eliaser Nghipangelwa recently told Namibian Sun that Oshikango, historically dependent on business with foreign nationals as well as exports, was now being sustained by locals from all corners of the country.He also agreed with the public perception that Oshikango would bounce back once the Angolan economy normalised.“Angola is our neighbour and it is just across the border. Once they are okay they will come back and support our businesses,” he said.-additional reporting by Reuters

Kwanza deal: Angola to cough up N$605 million

Comments

Namibian Sun 2025-08-06

Please login to leave a comment

Kwanza deal: Angola to cough up N$605 million

Comments

Namibian Sun 2025-08-06

Please login to leave a comment

Login