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February 2026
The Namibian
Central bank governor Ebson Uangutasaidthe bank needs to develop a system and needs external capacity
Source
“Central bank governor Ebson Uanguta during yesterday's repo announcement said the bank needs to develop a system, which is a challenge because external capacity is required.”
The central bank governor told parliament that reducing high banking fees will take time as new regulations are implemented, though he expects significant progress within three years. Banks earned N$5.0 billion from fee income last year, representing 31.3% of their total income.
Why it matters
Central bank's commitment to gradually reduce banking fees over three years addresses longstanding consumer complaints about high financial sector charges.
The central bank governor told parliament that reducing high banking fees will take time as new regulations are implemented, though he expects significant progress within three years. Banks earned N$5.0 billion from fee income last year, representing 31.3% of their total income.
The Bank of Namibia announced its repo rate will remain at 6.50% until mid-June, keeping commercial bank prime lending rates at 10%. The central bank cited weak domestic economic activity, higher inflation forecasts for 2026, and the need to maintain the Namibia dollar's peg to the South African rand in its decision.
Bank of Namibia governor Ebson Uanguta said Namibia's economy faces headwinds from weaker diamond prices, drought and constrained fiscal space, though it is projected to gradually strengthen over the medium term supported by increased uranium production, tourism recovery, and mining and energy investment. He noted that Namibia's strategic importance presents opportunities in oil and gas, renewable energy, and mining, but cautioned that global growth is expected to remain subdued through 2026 and 2027 amid geopolitical tensions and technological shifts.
The Bank of Namibia hosted diplomats, development agencies and international stakeholders to discuss global economic developments and Namibia's economic outlook. BoN governor Ebson Uanguta said the global economy faces structural changes from geopolitical tensions, technology shifts, climate risks and supply-chain disruptions, and that central banks must strengthen areas beyond traditional mandates including digital finance and cyber resilience.
Bank of Namibia governor Ebson Uanguta visited Kenya, Rwanda and Uganda to strengthen cooperation and learn from other African central banks, focusing on financial systems, digital transformation, banking supervision, oil sector management and economic policy. The Bank of Namibia signed a Memorandum of Understanding with Rwanda's central bank on economic research, financial inclusion, digital transformation, sustainable finance, innovation and staff training.
Bank of Namibia governor Ebson Uanguta has urged the public to stop damaging the country's new coin series, saying such actions are contributing to their deterioration. The coin series, introduced last year, has drawn criticism over rust and reduced durability; Uanguta said the bank is investigating concerns and testing coins in laboratories.
The Bank of Namibia's Monetary Policy Committee unanimously decided to keep the repo rate unchanged at 6.50%, with commercial banks expected to maintain their prime lending rate at 10.00%. The decision was guided by weak domestic economic activity, higher inflation forecast for 2026, and the need to safeguard the peg between the Namibia Dollar and the South African Rand.
The Bank of Namibia has appointed Nicholas Mukasa as second deputy governor effective May. Mukasa previously served as director of financial markets, managing foreign exchange reserves, implementing monetary policy, and overseeing government debt issuance.
The Bank of Namibia has agreed to purchase gold from Navachab Gold Mine for its reserves, but will send the unrefined gold abroad to be refined to international standards and is considering storage at the Bank of England in London. The central bank will buy gold through planned transactions over several months at prevailing market prices, aiming for a single-digit allocation to its foreign reserves.
The Bank of Namibia reported that real GDP growth dropped to 1.7% in 2025 from 3.8% in 2024, driven by weaker agriculture, lower global diamond demand, and manufacturing contraction, though inflation eased to 3.5% and services remained steady. Global growth is expected to slow to 3.2% by 2027 due to rising public debt and geopolitical tensions.
The Bank of Namibia declared a record annual loss of N$892 million for 2025, primarily due to unrealised foreign exchange losses from Eurobond redemption and currency fluctuations, though operating profit of N$569 million allowed a N$200 million dividend to government.
The Bank of Namibia paid N$200 million in dividends to the government for the 2025 financial year, down from N$720 million in 2024, despite strong operating profit of N$569 million. Governor Ebson Uanguta attributed the decline to factors including reduced global inflation, weakening of the US dollar, Eurobond redemption, and currency fluctuations.
The Bank of Namibia recorded an operating profit of N$569 million in 2025 and will distribute N$200 million in dividends to government, down from N$750 million in 2024, following a 50% decline in distribution profits due to global inflation declines, US dollar weakness, and Eurobond redemption.
The Bank of Namibia has signed a gold purchase agreement with QKR Namibia Navachab to acquire locally produced gold, part of a broader programme to strengthen reserve assets, enhance financial resilience, and support the country's ability to respond to external shocks. The phased gold acquisition programme aligns with international reserve management standards and aims to support macroeconomic stability and national economic interests.
The Bank of Namibia has signed a gold purchase agreement with QKR Namibia Navachab to strengthen the country's financial reserves and implement a structured gold acquisition programme. The agreement aims to improve reserve management, enhance financial resilience, support retention of national resources, and help the economy respond to external shocks.
The Bank of Namibia and the Namibia Financial Institutions Supervisory Authority have signed an updated Memorandum of Agreement to strengthen cooperation in regulating Namibia's financial sector. The framework enables information sharing, joint supervision, joint investigations, and coordination on emerging risks and financial technology matters.
The Bank of Namibia and the Namibia Financial Institutions Supervisory Authority have signed an updated agreement to improve cooperation in regulating and supervising the financial sector, including joint supervision, information sharing, and support for fintech development. The partnership aims to safeguard financial stability, protect consumers, and align Namibia with international standards.
The Bank of Namibia and NAMFISA have signed an updated Memorandum of Agreement to strengthen cooperation in regulating the financial sector, establishing a system for information sharing, joint inspections, and risk monitoring. The deal includes creation of a technical working group to support responsible growth of financial technology in Namibia.
Prime Minister Dr Tjitunga Elijah Ngurare has called on financial institutions to engage in respectful dialogue that preserves individuals' dignity and minimizes severe consequences like home repossession, emphasizing humanity and shared national responsibility. During a meeting with the Bank of Namibia, he commended the institution's strategic direction and affirmed government support for advancing the Sixth National Development Plan through credible and forward-looking institutions.
Bank Windhoek has joined the first cohort of institutions testing government-to-person (G2P) payments under Namibia's national instant payment programme, initially piloting digital social grant disbursements with beneficiaries already familiar with digital channels before a nationwide rollout.
The Bank of Namibia has withdrawn its High Court application to wind up Trustco Bank Namibia, a former Trustco Group subsidiary. Trustco confirms the bank remains solvent and states that all depositors have been fully repaid with no losses.
The Bank of Namibia and South African Reserve Bank have signed a revised Memorandum of Understanding to strengthen institutional cooperation on central banking functions, supervision, regulation, and resolution planning of cross-border financial institutions. The agreement establishes a formal framework for collaboration on financial stability, monetary coordination, and capacity-building while protecting the statutory independence of both institutions.
The Bank of Namibia and the South African Reserve Bank signed a revised agreement to enhance cross-border cooperation, financial stability, and supervisory coordination. The updated accord replaces a 2015 agreement and establishes a framework for central banking cooperation while maintaining both institutions' statutory independence.
Bank Windhoek has begun piloting government-to-person digital payments for social grants through the national instant payment programme. The initial phase involves pension and grant beneficiaries already familiar with digital channels, with the aim of validating system stability and efficiency before national rollout.
Finance Minister Ericah Shafudah announced that Namibia's Instant Payment Solution (IPS), a collaborative effort by the Ministry of Finance, Bank of Namibia, and payment service providers, will launch in the third quarter of 2025. The system will enable government to pay social grants and other benefits directly into beneficiaries' bank accounts or e-wallets within seconds, replacing cash payouts through NamPost and reducing travel costs and long queues, especially for elderly and rural citizens.
Finance Minister Ericah Shafudah announced that the country's first e-money system will launch later this year, transitioning government social grant disbursements from cash to instant digital payments via accounts or e-wallets. The Bank of Namibia's subsidiary Instant Payments Namibia is developing the system, which has completed integration testing and is undergoing user acceptance testing, with plans for a national digital literacy campaign before rollout.
Namibia's international reserves rose from N$48.6 billion to N$51.9 billion, recovering from a decline caused by the October 2025 Eurobond redemption. Central bank governor Ebson Uanguta attributed the increase mainly to Southern African Customs Union receipts and said the level provides 3.3 months of import cover, sufficient to support the currency peg.
The Bank of Namibia's Monetary Policy Committee voted unanimously to maintain the repo rate at 6.50%, prioritising monetary stability and protecting the Namibia Dollar's peg to the South African Rand amid a slowing domestic economy, though inflation remains contained and the external trade position has strengthened.
The Bank of Namibia has postponed the introduction of retail bonds to 2027, citing the need to develop systems and external capacity as obstacles, after previously targeting a 2026 launch. Retail bonds will allow individuals to lend to the government at a lower entry point than existing treasury bills or fixed-income bonds.
Three Bank of Namibia executives—Nicholas Mukasa, Emma Haiyambo, and Florette Nakusera—have been shortlisted to fill the vacant deputy governor position; according to sources, Mukasa is the front-runner after the Public Service Commission submitted him as the top contender.