Martin Endjala
The governor of the Bank of Namibia (BoN), Johannes !Gawaxab has called for adaptability and innovation in Namibia’s financial sector, urging the country to embrace technological advancements while maintaining stability.
!Gawaxab made this statement on Tuesday during a lecture at the University of Namibia (UNAM) titled “Modernising Namibia’s Financial Landscape for a Prosperous Future.”
The lecture provided a platform to outline the bank’s strategic transformations to foster a financial system that promotes inclusivity, resilience, and sustained growth.
“Success will depend on our ability to stay ahead of the curve, be adaptable, and foster innovation without compromising stability,” he said.
He reiterated that BoN is committed to leading the country into a new financial era that balances the opportunities provided by technological advancements with the need for stability and trust.
According to !Gawaxab, modernisation must benefit all Namibians, ensuring that no one is left behind in the journey towards a prosperous future.
“A key development to watch is the potential impact of widespread digital money adoption on commercial banks. As competition for deposits intensifies, banks may be forced to offer more attractive rates to attract customers, introducing new risks,” he said.
He suggested that non-deposit-taking institutions, particularly Big Tech, may replace banks in the distribution and management of digital money.
As the financial system continues to evolve, !Gawaxab stressed that Namibia must be ready to seize opportunities, mitigate risks, and ensure that these efforts translate into meaningful and sustained improvements in the lives of all its citizens.
“The future, as envisioned by BoN, is one where Namibia’s financial system is not only robust and secure but also fully inclusive, providing the tools for prosperity to every individual, community, and business,” he said.
Moreover, the Bank of Namibia has modernised the financial sector by establishing various robust legislative frameworks aimed at fostering financial stability and encouraging innovation.
This includes promoting safe innovation. BoN has since developed the Virtual Assets Act, 2023 (No. 10 of 2023), which grants it regulatory authority over virtual asset service providers to safeguard the public against market abuse and scams.
The recently launched Digital Identity Project, part of Namibia’s Digital Public Infrastructure Initiative, aims to establish a secure and verifiable e-ID system, streamlining government services and enhancing security in financial services through efficient KYC verification, among others.
Namibia ranks ninth among African countries according to the AI Preparedness Index (AIPI) for 2024.
According to reports, Namibia’s position reflects significant progress in these areas, demonstrating the nation’s commitment to digital transformation and innovation.
