Martin Endjala
The Bank of Namibia (BoN) has announced a dividend of N$ 511.5 million to the State Revenue Fund for the 2023 financial year, an improvement compared to the N$413.7 million recorded in the 2022 financial year.
The Bank’s Governor Johannes !Gawaxab, stated that despite a challenging global economic environment, the financial sector’s performance remained sound during 2023. With the stock of international reserves rising by 11.9 percent to N$53.2 billion.
He made this announcement yesterday during the launch of its 2023 annual report in Windhoek. Stating that from N$ 47.6 billion recorded at the end of 2022 to N$53.2 billion as of 31 December 2023.
The increase was supported by higher Southern African Customs Union (SACU) receipts and government foreign borrowing.
An allocation of N$100 million was made to the Development Fund Reserve for development purposes, and N$10 million to the Training Fund Reserve.
The Bank’s financial performance showcased increased robustness in 2023 due to higher interest rates and average investment balances.
Operating profit soared by 57.5 percent, from N$651 million in 2022 to N$1.0 billion in 2023, due to higher interest rates and average investment balances.
In this regard, the amount designated for distribution increased by 24 percent year-on-year, from N$772.6 million in 2022 to N$956.9 million in 2023.
Namibia’s current account deficit deteriorated further, mainly due to increasing outflows on the services account on the back of oil exploration and appraisal activities.
The deficit on the current account widened to N$34.1 billion during 2023, from N$26.4 billion recorded in the preceding year.
This was due to a higher outflow recorded in the services and primary income accounts. As a ratio of Gross Domestic Product (GDP), the current account deficit stood at 15.0 percent in 2023, relative to a deficit of 12.8 percent recorded the previous year.
However, exploration-related foreign direct investment inflows readily financed a significant part of these deficits.
Moreover, on the fiscal front, the government’s budget deficit as a ratio to GDP eased during the 2023/24 financial year, while the debt ratio to GDP declined over the year to the end of December 2023.
The central government’s budget deficit for the 2023/24 financial year further narrowed to 3.2 percent of GDP, compared to 5.1 percent of GDP registered during the preceding fiscal year.
Resulting in a buoyant 26.0 percent increase in revenue during the period under review, exceeding the rise in expenditure, which is estimated to have increased by 18.6 percent.
Total debt as a percentage of GDP stood at 65.3 percent at the end of December 2023, moderately lower than a year earlier.
Meanwhile, The Bank’s Strategic Communications and International Relations, Kazembire Zemburuka, indicated that the Namibian economy recorded sturdy growth in 2023, but at a slower pace than in 2022.
Economic growth scaled down to 4.2 percent, compared to growth of 5.3 percent recorded in 2022, on the back of slower growth in the primary and secondary industries.
In 2023, the Bank marked a significant milestone as it completed the second year of its three-year strategic plan (2022-2024).
Zemburuka pointed out that by the end of 2023, the Bank had made noteworthy progress, completing 68 percent of the comprehensive three-year plan and meeting 93 percent of the specific goals set for 2023.
Additionally, he said the achievements specified in the report could not have been possible without the invaluable contributions of the Board and the staff as well as the consistent support of all stakeholders.
