Recently, the Bank of Namibia declared its choice to start accumulating gold as a component of managing its foreign exchange reserves.

The decision to incorporate gold, aiming for about 3% of total foreign exchange reserves, mirrors international practices among central banks. This choice underscores the strategic importance of gold as an asset that helps protect against inflation and strengthens stability amid financial crises.

Governor Johannes !Gawaxab affirmed the choice during a mandatory meeting with President Dr. Netumbo Nandi-Ndaitwah the previous week.

As stated by the bank, foreign reserves decreased by 5.2%, reaching N$59.7 billion during the initial three-month period of 2025. The present coverage for imports stands at 3.9 months; however, this extends to 5.2 months when oil- and gas-based imports, which are funded from external sources, are excluded.

Acknowledging the shifting challenges, the Bank likewise reinforced its dedication to policy-making grounded in evidence.

TheBank discussed its continuing efforts in macroeconomic research and policy advice related to rural economic growth, international agriculture supply networks, fishery policies’ impacts, water shortages, as well as the financial repercussions of newly found oil reserves, which could potentially boost socioeconomic progress, generate employment opportunities, and reduce poverty when effectively managed.

fully implemented.

In the meantime, !Gawaxab highlighted potential threats to Namibia’s external sector due to U.S. tariff policies and escalating global trade tensions. These factors might diminish export success and put downward pressure on the local currency.

The economy is projected to grow by 3.8% in 2025, supported by mining, construction, trade, and tourism, though forecasts were revised slightly downward due to global uncertainty.