The Bank of Namibia has held talks with Navachab and B2Gold as part of its plans to begin acquiring gold from local producers to bolster the country’s foreign exchange reserves.
Governor Johannes !Gawaxab said the central bank’s objective is to hold gold equivalent to around three percent of net foreign exchange reserves, in line with international central banking trends.
“Our goal is to acquire gold from local mines, namely Navachab and B2Gold. We intend for the gold we acquire to meet international standards set by the London Bullion Market Association,” he said.
Gold purchased under the plan will be stored in the Bank of Namibia’s vaults and will form part of the official foreign exchange reserves. !Gawaxab emphasised that the acquisition is a long-term, strategic initiative aimed at stability and risk mitigation, rather than short-term profits.
“The acquisition of gold is strategic and long-term. While some may argue that we are buying at a high point, our focus is on long-term stability and strategic purposes rather than short-term gains,” he said.
The move is intended to diversify the country’s reserves, provide a hedge against inflation, and enhance resilience during economic shocks.
Gold is also viewed as a safeguard against political tensions and a weakening US dollar, given its inverse relationship with the currency.
!Gawaxab noted that Namibia does not currently have a refinery capable of producing gold to the required 99.9% purity, as local mines can only refine it to 85%.
To address this, the Bank has engaged the management of refineries in South Africa.
He added that the Bank has also been in contact with the Ministry of Industrialisation, Mines and Energy to ensure the necessary processes are in place.
