Namibia has moved to integrate its mining output into national reserve management after the Bank of Namibia signed a gold purchase agreement with QKR Namibia Navachab Gold Mine, securing its first domestic supply of gold for official reserves.
The agreement marks a key step in the central bank’s plan to build gold holdings locally, although a similar supply arrangement with B2Gold remains outstanding.
The deal provides for the structured purchase of gold produced at Navachab and forms part of a broader strategy to diversify foreign exchange reserves while linking mineral production more directly to macroeconomic stability.
Bank of Namibia Governor Ebson Uanguta said the agreement advances efforts to strengthen reserve composition amid rising global uncertainty.
“Gold continues to play a critical role as a store of value and a hedge against global uncertainty,” Uanguta said.
However, the initiative highlights a critical gap in Namibia’s gold value chain. The country does not yet have refining capacity to meet international standards, with local mines producing gold at around 85% purity. The central bank has initiated engagements with refineries in South Africa to refine the metal to 99.9% purity required for reserve assets.
The arrangement positions the mining sector as a direct contributor to sovereign financial buffers, while underlining constraints in downstream beneficiation.
Uanguta said the gold acquisition programme will be implemented in phases, with purchases guided by market conditions and supported by governance and risk management frameworks.
“By partnering with domestic producers, we are not only strengthening our reserves but also supporting local value creation and economic development,” he said.
Navachab Managing Director George Botshiwe said the agreement reflects growing alignment between mining operations and national economic priorities.
“As Navachab Mine, we are proud to partner with the Bank of Namibia on this important initiative which underscores the vital role that public-private partnerships play in advancing sustainable development,” Botshiwe said.
The central bank has indicated that it intends to source gold from multiple local producers. In 2025, then governor Johannes !Gawaxab said the Bank was in discussions with both Navachab and B2Gold, targeting gold holdings of around 3% of Namibia’s net foreign exchange reserves.
