Quick overview

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Namibia declared its intention to implement Ghana’s well-received Gold Purchase Program as a calculated step to fortify its monetary policy and boost its faltering economy.

The initiative seeks to stabilize inflation by accumulating gold as a vital financial asset, boost Namibia’s national reserves, and strengthen the Namibian dollar. Namibia is one of Africa’s top gold producers, with a long-standing mining industry and a stable political climate.

The industry continues to play a significant role in the country’s GDP. According to The Namibia Economist, the decision was confirmed by Johannes Gawaxab, the governor of the Bank of Namibia (BoN), during a statutory meeting with President Dr. Netumbo Nandi-Ndaitwah last week. The central bank reports that in the first quarter of 2025,

Namibia’s foreign reserves fell to N$59.7 billion. The inclusion of gold, with a target of 3% of net foreign exchange reserves, is amid a growing global trend among central banks. Gold is becoming more recognized as a strategic asset for bolstering economic resilience and protecting against inflation in times of financial strain.

The country’s gold earnings increased by 20.1% year-over-year and 13.4% quarter-over-quarter, reaching N$4.3 billion in the fourth quarter of 2024. Notwithstanding these advancements, Namibia still faces economic difficulties, such as inflation, currency depreciation, and exposure to fluctuating commodity prices, like many other African nations.