Central Bank Governor !Gawaxab Reiterates Commitment To Tackle Economic Challenges

By:Justicia Shipena
Governor of the Bank of Namibia (BoN) Johannes !Gawaxab has reaffirmed that the central bank is prepared and eager to engage closely with stakeholders in order to manage the current economic challenges to support sustainable growth in the country.
On Tuesday, !Gawaxab visited President Hage Geingob at the State House in company with his deputy governors EbsonUanguta and Leonie Dunn.
The purpose of the visit was to update the President on the nation’s progress in implementing the action plan to respond to the Financial Action Task Force’s (FATF) Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation (AML/CFT/CPF) Mutual Evaluation exercise as well as to brief him on significant geopolitical and macroeconomic developments.
The central bank executives provided Geingob with an update on its strategic plans and their implementation to target financial inclusion in rural areas and the informal economy.
“The [central] bank is ready and willing to work closely with its key stakeholders to navigate the prevailing complexities that exist within the global and domestic economy and promote sustainable growth in Namibia,” !Gawaxab stated.
He reiterated the central bank’s dedication to fostering financial inclusion, economic stability and Namibia’s economic growth.
The meeting began with an assessment of the present geopolitical and macroeconomic scenario, according to KazembireZemburuka, the BoN’sDirector for Strategic Communications and International Relations.
The ongoing conflict between Russia and Ukraine and the rising tensions between the US and China are two significant fault lines now affecting the world economy.
For monetary authorities around the world, inflation is still a problem.
In Namibia inflation has moderately increased, mostly due to rising food and housing prices.
Zemburuka stated that in order to combat inflationary pressures and maintain the one-to-one peg between the Namibian dollar and the South African rand, the BoNhas made the necessary choice to hike interest rates.
The SME Economic Recovery Loan Scheme was reinstituted this year by the central bank in collaboration with the ministry of Finance and Public Enterprises.
More than 200 SMEs around the nation have received more than N$187 million through this programme, enabling them to continue operations and preserve current employment.
Additionally, through commercial banks with N$5.8 billion in sanctioned loans under the moratorium, the BoNhas extended relief measures to cushion individuals and enterprises until April 2024.
“In terms of the domestic economy, Namibia witnessed strong growth of 4.2 percent in 2022, however, is projected to moderate to 3.0 percent in 2023 due to slower growth in primary and secondary industries,” Zemburukasaid.
Despite projected increase in economic activity during the first four months of 2023, BoN noted that threats to the economic outlook include issues with the water supply, an impending drought, and infrastructure limitations.
Cabinet authorised a National Action Plan in December 2022 to reduce the possibility of a targeted review and Grey Listing by the FATF.
Zemburuka stated that by passing two new bills and twelve revisions to existing laws, Namibia has demonstrated its commitment to upholding its commitments under international law.
Furthermore, even though Namibia has achieved widespread financial inclusion, access to reasonably priced financial services is still scarce in rural areas and the unorganised sector, he said.
According to Zemburuka, the central bank wants to remedy this situation by encouraging inexpensive, interoperable, quick, and economical payment systems to lessen dependency on cash and boost the effectiveness of financial services.