Namibia Monitors US-South Africa Tensions Amid Economic Concerns. Namibia’s central bank has expressed concerns over potential economic disruptions following rising tensions between the United States and South Africa. The country’s central bank governor, Johannes !Gawaxab, warned that Namibia’s economy could be affected due to its strong economic ties with both nations and the Namibian dollar’s fixed exchange rate with the South African rand.
The warning comes after US President Donald Trump signed an executive order on February 7, halting all financial aid to South Africa. The decision was based on allegations—widely disputed—that South Africa’s land reform policies and its legal action at the International Court of Justice regarding Israel’s military actions in Gaza violated human rights.
The warning comes after US President Donald Trump signed an executive order on February 7, halting all financial aid to South Africa. The decision was based on allegations—widely disputed—that South Africa’s land reform policies and its legal action at the International Court of Justice regarding Israel’s military actions in Gaza violated human rights.The Bank of Namibia lowered its key interest rate by 25 basis points to 6.75%—the fourth consecutive cut—aligning with South Africa’s recent rate adjustment. This move was driven by stable inflation and a slowdown in economic growth.
Namibia’s inflation is expected to average 4% in 2025, with a slight increase to 4.4% in 2026 due to exchange rate considerations. Economic growth projections for 2025 stand at 4%, up from the previous year’s 3.5%. Meanwhile, international reserves have grown to 65 billion Namibian dollars, reinforcing the country’s financial stability.
