STAFF WRITER
The Macroprudential Oversight Committee (MOC) of the Bank of Namibia says the financial sector is sitting on sound footing and showing resilience from global economic challenges.
A statement released by the Apex bank Deputy Governor Ebson Uanguta on Wednesday said the domestic financial system continues to demonstrate resilience.
“Both the banking and non-banking financial institutions sectors remained sound and well capitalized with sufficient level of capital and liquidity buffers to absorb
any potential losses. In addition, the payment infrastructure and operations remained efficient,” Uanguta said.
He said the MOC has made notable progress in enhancing the resilience of the banking sector and addressing vulnerabilities in the property market through targeted macroprudential measures.
“Going forward, the recent monetary and fiscal policy easing measures, alongside the existing regulatory initiatives, are expected to support the stability of the financial
sector. The MOC reaffirms its commitment to closely monitor both the global and domestic financial stability risks that could impact and undermine the soundness of
the Namibian financial system,” he said.
GROWTH
The central bank said despite ongoing global headwinds, the domestic economy has demonstrated resilience during the first quarter of 2025.
“Namibia’s real GDP grew by 2.7 percent in the first quarter of 2025, albeit lower than the 4.8 percent growth recorded in the same period last year. This was mainly due to growth recorded across sectors such as mining, electricity generation, wholesale and retail trade, tourism,
communication, and transport. Overall real GDP growth is projected to moderate to 3.5 percent in 2025, from 3.7 percent recorded in 2024,” Uanguta said.
According to the central bank major risk are expected from persistent global uncertainty, such as trade tensions, geopolitical disruptions, and unpredictable commodity prices.
“Domestically, factors such as water supply disruption at coastal towns, and animal disease outbreaks, as well as slow execution of the development budget, may continue to pose downside risks to growth,” he said.
The central bank also added that the banking sector remained well capitalised, and liquid during the first quarter of 2025.
“The banking sector’s total assets declined by 2.1 percent to N$182.7 billion during the first quarter of 2025, mainly due to a significant decline in cash and balances, primarily because of dividend payouts,” Uanguta said.
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