CHAMWE KAIRA
The Bank of Namibia mobilised just over N$15 billion in alignment with the government’s domestic funding needs for the 2024/25 fiscal year, governor Johannes !Gawaxab told an investors conference this week.
“This funding was secured at favourable pricing. Funding was strategically secured across nominal bonds, inflation-linked bonds, and treasury bills, the governor said.
He pointed out that investor appetite remained strong, with auctions recording healthy bid-to-cover ratios of approximately two times.
Furthermore, he said the government reaffirmed its commitment to redeem the Eurobond maturing in October this year through a disciplined and transparent strategy.
The government will also continue building the sinking fund, which currently stands at US$463 million until redemption.
“The bank has invested the sinking fund in safe and highly liquid US dollar-denominated assets.”
In terms of the Welwitschia Fund, Namibia’s sovereign wealth fund! Gawaxab said the fund has grown remarkably through investment returns alone, reaching a market value of N$456 million at the end of March 2025 at the current exchange.
“This growth is a direct result of a well-considered strategic asset allocation, implemented in November 2022. The portfolio is globally diversified, with the majority in global and emerging market equities, complemented by holdings in corporate bonds, developed market property, and sovereign bonds.”
!Gawaxab said this balanced, long-term approach has yielded an annualised return of around 14%, demonstrating not just performance but also resilience and foresight.
In terms of the economy, he recorded growth of 3.7% in 2024, a modest slowdown from the 4.4% achieved in 2023.
“As we navigate the challenges ahead, our outlook remains both confident and optimistic.
Together, we will continue to build a resilient, inclusive, and future-ready financial system for all Southern African Customs Union (SACU) and diamond revenues at a time of rising government expenditure.”
He said inflation eased to an average of 4.2% in 2024, down from 5.9% the year before. This moderation was driven by a slowdown in food and transport costs. Inflation is forecast at 4% in 2025, supported by easing international oil prices and a steady food outlook.
“As we reflect on 2024, we do so with clarity, not just of where we’ve come from, but where we are determined to go,” the governor said.
!Gawaxab disclosed that the Bank of Namibia granted provisional licensing approval to the CSD Company, authorising it to interface directly with the Namibia Interbank Settlement System (NISS).
“Several market players have already confirmed their commitment to becoming CSD participants. Acceleration in market readiness activities to ensuring every participant is fully prepared for our anticipated launch in the third quarter of this year.”
