BON CELEBRATES 35 YEARS AMID ECONOMIC TRIUMPHS AND PERSISTENT INVESTMENT CHALLENGES
- Source: Business Express
The Bank of Namibia (BoN) marked a signifcant milestone last week, celebrating 35 years of steering the nation’s monetary policy and safeguarding financial stability. A high-profile event in the capital, officiated by President Dr. Netumbo Nandi-Ndaitwah and hosted by Governor Johannes !Gawaxab, served not only as a tribute to the institution’s legacy but also as a platform to confront Namibia’s enduring economic hurdles, particularly the stubbornly low levels of domestic investment.
The celebratory event on 23 July 2025 witnessed the grand launch of Namibia’s upgraded banknotes and new coinage, the country’s third currency upgrade since independence. This tangible symbol of progress underscored the central bank’s journey. Governor !Gawaxab, reflecting on the BoN’s evolution since its establishment in 1990, acknowledged substantial achievements but delivered a sobering economic assessment that resonated deeply with attendees from government, the private sector, civil society, and the diplomatic corps.
Stability achieved, investment lagging
Governor !Gawaxab highlighted the Bank’s core success in maintaining price stability, a cornerstone mandate. He noted that while average inflation hovered around 7.0% since independence, it now stands at a commendable low of 3.7% as of June 2025. This achievement, he stressed, demonstrates the BoN’s effective navigation through diverse and often challenging economic climates over three and a half decades. Furthermore, the expansion of the banking sector itself – growing from just five commercial banks in 1990 to seven today – was presented as evidence of a maturing financial landscape offering greater choice for consumers.
However, the Governor’s tone shifted markedly when addressing the critical issue of gross fxed capital formation. He sounded a strong cautionary note, revealing that this key indicator of domestic investment remains “stubbornly below 10 percent of GDP.” This figure, he emphasized, places Namibia significantly behind comparable emerging markets and developing economies.
“This insufficient investment level signals deeprooted structural weaknesses within our economy,” Governor !Gawaxab stated. He warned that this chronic underinvestment fundamentally hampers Namibia’s capacity to expand productive sectors, upgrade vital national infrastructure, and ignite the innovation essential for achieving sustainable, long-term economic growth and job creation. The persistent low investment-to-GDP ratio represents a major brake on the nation’s development aspirations.
President calls for inclusive finance and sectoral focus
Echoing the Governor’s sentiments on stability, President Nandi-Ndaitwah commended the Bank of Namibia for its pivotal role in maintaining macroeconomic stability and protecting the integrity of the national financial system. “For 35 years, the Bank has been our anchor,” she remarked. However, the President swiftly pivoted to challenge the broader financial sector, urging institutions to become far more proactive partners in advancing the government’s agenda for inclusive growth. She pinpointed critical areas demanding urgent attention: persistent financial exclusion, high costs of fnancial services that burden ordinary Namibians and businesses, and the alarming rise in fraudulent schemes eroding public trust. “The sector must be agile and responsive, attuned to the realities of the Namibian people,” President Nandi-Ndaitwah declared. “Our MSMEs, our youth, and our creative industries cannot thrive without access to affordable, appropriate finance.” Moving beyond access, the President issued a clear call for strategic investment direction. She advocated for signifcantly increased investment flows into value addition (processing raw materials domestically), revitalizing the agricultural sector, and emerging growth frontiers like the blue economy (ocean resources) and critical minerals development. Concluding her address, the President paid tribute to current and former BoN Governors and staff, describing them as “economic soldiers,” and implored them to remain unwavering in their defence of Namibia’s economic sovereignty.
Anchored in stability, advancing with transformation The launch of the new currency series forms part of a broader 35th-anniversary programme encapsulated by the theme “Anchored in Stability, Advancing with Transformation.” This theme reflects the BoN’s dual commitment to its foundational mandate while actively pursuing modernisation and broader engagement. A series of initiatives planned over the coming weeks underscores this commitment:
The public is invited to participate in a nationwide currency artwork competition, creatively reimagining the symbolic and functional role of money in Namibian society. The winning design will be preserved for posterity in a time capsule alongside other anniversary memorabilia.
Later in August, Governor !Gawaxab will engage in a unique intergenerational dialogue at a staff townhall with his predecessors, former Governors Tom Alweendo and Iipumbu Shiimi. This session will delve into institutional leadership, the evolution of monetary policy over decades, and the crucial task of preserving institutional memory, followed by an open Q&A with staff.
Recognizing the vital importance of youth engagement, the BoN is advancing two flagship initiatives: the Tertiary Institutions Debate Challenge and the Youth Central Banking Simulation. These platforms aim to demystify central banking, build economic literacy among young Namibians, foster dialogue on monetary policy and national economic issues, and expose participants to real-world policy challenges. Furthermore, the Bank will host a monetary policy dialogue with market participants, financial analysts, and key stakeholders. This event is designed to deepen understanding and stimulate robust discussion around current monetary policy stances, Namibia’s economic trajectory, and future policy priorities.
Navigating the next 35 years
Collectively, these anniversary initiatives signal the Bank of Namibia’s reinforced commitment to transparency, inclusion, and fostering long-term economic impact. As it celebrates 35 years of service, the institution stands at a crossroads, firmly rooted in its indispensable mandate of ensuring price and financial stability – the bedrock upon which all economic activity depends.
