Hertha Ekandjo
Namibia and South African central banks have signed a memorandum of understanding to strengthen regional financial cooperation.
The agreement was signed by the Bank of Namibia (BoN) Governor, Ebson Uanguta, and the South African Reserve Bank (SARB) Governor, Lesetja Kganyago, this week in Pretoria, South Africa, Future Media Namibia reports.
In a statement issued on Wednesday BoN noted that the updated agreement replaces the previous MoU concluded on 11 September 2015.
According to the statement, the agreement reflects the rapidly evolving financial landscape in both Namibia and South Africa from strengthened supervisory mandates and enhanced resolution frameworks to the growing complexity of cross-border financial institutions operating in both jurisdictions.
Furthermore, the agreement acknowledges the deep interconnections between the two countries’ economies and financial markets.
Under the revised MoU, the BoN and SARB have established a formal framework for cooperation in central banking operations, financial supervision, regulation, and resolution planning for institutions with cross-border activities.
Key areas of cooperation include, strengthening regional integration and collaboration, coordinating monetary and fiscal policy more effectively, enhancing cross-border financial stability measures and supporting capacity-building initiatives.
The agreement is designed to bolster cross-border supervisory coordination, improve crisis preparedness, and safeguard depositors while maintaining overall financial stability in both countries.
Speaking at the event, Uanguta emphasised the longstanding and constructive relationship between the two central banks, rooted in shared history and regional integration.
“In an increasingly complex global environment marked by digital transformation and emerging risks, regional cooperation is essential for strengthening resilience and safeguarding financial stability”, said Uanguta.
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