The Bank of Namibia (BoN) has declared a N$413.7 million dividend for the financial year ended 31 December 2021 to the State Revenue Fund, up from N$278.2 million declared in 2020.
The higher surplus recorded in 2021 was largely attributed to capital gains realised from foreign reserve assets and cost containment measures implemented by the Bank.
The apex bank also announced that its Board, in consultation with the Minister of Finance, agreed to use a portion of the dividend as further seed capital for the newly created Sovereign Wealth Fund (the Welwitschia Fund).
On Thursday BoN released its financial annual results for the financial year ended December 2021, where its net interest income declined from N$533.67 million in 2020 to N$468.27 million in 2021 attributed to low interest rates that prevailed during 2021, as Central banks continued to cut rates in response to the COVID-19 pandemic.
BoN’s operating expenses for period decreased by N$82 million from N$514.93 million in 2020 to N$432.93 million in 2021.
The amount available for distribution increased by N$140.21 million from N$532.47 million in 2020 to N$432.93 million last year.
The central bank’s Net Interest Income declined from N$533.67 million in 2020, to N$468.27 million in 2021 attributed to the low interest rates that prevailed during 2021.
The Bank’s assets increased from N$38.52 billion in 2020 to N$52.86 billion in 2021, mainly due to increases in investments and other receivable balances, while currency in circulation increased from N$4.71 billion in 2020 to N$4.76 billion in 2021.
Due to the rapidly changing environment the Bank is currently operating in its New Strategic Plan which has a three-year execution time frame.
“Thus over the next three years, the Bank will continue executing its statutory mandate and the four new strategic focus areas (pillars). These are referred to as pillars: the Purpose Pillar, the Stakeholder Engagement Pillar, the Talent and Transformation Pillar, and the Future fit Organisational Efficiency and Effectiveness Pillar,” the Bank said.
Looking ahead, BoN Governor Johannes! Gawaxab,noted that Namibia needs to map out strategies for the post-COVID-19 era to drive economic recovery.
“The new plan must vigorously pursue economic diversification, improve productivity and competitiveness, and enhance resource allocation to productive sectors. Namibia must raise the momentum of COVID-19 vaccine uptake to increase herd resistance,” he said.
The Bank also launched its new Corporate Identity which stems from the Bank’s transformational journey.
“The refreshed look and feel features a futuristic design that demonstrates the Bank’s willingness to embrace innovation and transformation,” said the Governor.
