The Bank of Namibia (BoN) has officially launched its 2024 Annual Report, marking the successful conclusion of its 2022–2024 strategic cycle and setting the stage for a bold new chapter in the nation’s financial and economic landscape.
Under the theme “The Impact of Artificial Intelligence (AI) on the Economy”, the event underscored the Bank’s accomplishments in monetary stability, digital innovation, and institutional transformation.
A Year of Challenges and Resilience
In his introductory message, the Governor of the Bank of Namibia reflected on a year shaped by:
• Global uncertainties
• Domestic political transitions
• Severe drought conditions
The passing of President Hage G. Geingob and the subsequent inauguration of President Nangolo Mbumba, alongside national elections, added complexity to Namibia’s economic environment.
Despite these challenges, the Bank achieved:
• 98% of its three-year strategic objectives
• 95% of its 2024 targets
Key Highlights
• Inflation decline: 6.1% in 2022 to 4.2% in 2024, with 4.0% projected for 2025
• A stable banking sector, strengthened by a new Macroprudential Framework
• Digital transformation, leveraging AI-driven financial oversight
AI as a Catalyst for Economic Transformation
A focal point of the report was the transformative role of AI in Namibia’s economy. The Bank has integrated AI to:
• Enhance banking supervision through Large Language Models (LLMs) for regulatory data processing
• Predict Non-Performing Loans (NPLs) up to four quarters in advance
• Automate economic data collection, improving accuracy in financial statistics
However, the Bank also warned of AI-related risks, such as cybersecurity threats and data governance concerns, emphasizing the need for strong policy frameworks.
Economic Performance and Monetary Policy Adjustments
Real GDP growth slowed to 3.7% in 2024 (from 4.4% in 2023), mainly due to:
• Drought impact
• Weaker diamond production
Despite this, secondary and tertiary industries remained resilient, with growth in:
• Manufacturing
• Construction
• Wholesale trade
The Monetary Policy Committee (MPC) responded by:
• Cutting the repo rate by 75 basis points to 7.00%
• Encouraging economic stimulus amid declining inflation and subdued credit growth
Financial Sector Stability and Digital Innovation
The banking sector showed resilience, with:
• Improved profitability
• Strong capital buffers
The Non-Bank Financial Institutions (NBFIs) sector also performed well, driven by:
• Favorable market conditions
• Easing inflation
Government Payment Portal – A Digital Milestone
• 702 domestic payments processed, worth N$31.7 billion
• 1,259 international payments, totaling N$5.6 billion
Looking Ahead: A Future-Ready Namibia
The Bank’s forward-looking vision focuses on:
• Smart, adaptive regulation for fintech and green finance innovation
• Investment in AI and digital skills to enhance financial oversight
• Global partnerships to align with emerging financial technologies
“Progress flourishes where regulation is pragmatic, leadership is bold, and innovation is nurtured,” the Governor stated.
Access the Full Reports
📄 Bank of Namibia 2024 Annual Report
The Bank of Namibia remains committed to ensuring monetary stability, financial resilience, and inclusive economic growth, using technology to shape a prosperous future for all Namibians.
