The Bank of Namibia (BoN) has declared a record dividend of N$720 million to the government for the 2024 financial year, marking the highest payout in the central bank’s history.
This represents a significant increase from the N$511.5 million distributed in 2023.
“I am delighted to announce publicly that for the 2024 financial year, we have declared a record historic dividend to the Government of the Republic of Namibia of N$720 million (2023: N$511,470,000). I repeat: N$720 million, the first time in the history of the Bank for such a dividend to be declared,” said BoN Governor Johannes !Gawaxab said on Monday.
He attributed the bank’s strong financial performance to a N$10 billion year-on-year growth in investments, driven by higher SACU receipts, increased diamond revenue, high yields, and a favourable global interest rate environment.
“The strong reserve position in 2024 yielded strong interest income, net interest income, and total income results. Our expenses were robustly controlled and monitored during the period,” !Gawaxab said..
The central bank recorded an operating surplus of N$1 billion, consistent with the previous year, while unrealised foreign exchange gains of N$226 million contributed to an elevated surplus of N$1.37 billion.
The Governor noted that these financial gains have enabled the bank to make significant provisions for future development and operational expansion.
In addition to the dividend, BoN has allocated N$70 million to its Building Fund Reserve to expand infrastructure, ensuring the institution remains equipped for future challenges.
“The future demands that we operate smarter, to remain competitive and aligned to an ever-changing tech-driven world, and not just harder. We will continue to modernise our internal processes, embrace automation, and adopt data-driven decision-making,” !Gawaxab said.
National Planning Commission Director General Kaire Mbuende commended the central bank’s financial stewardship and its ability to deliver strong results despite global economic uncertainties.
“Once again, the Bank has declared and disbursed a historic record dividend of N$720 million to the Treasury, an instrumental increase from the N$511.5 million distributed last year,” he said.
Mbuende emphasised that the funds would be allocated to key public sectors requiring urgent investment.
“These funds, as has been customary, will support frontline public investments in education, healthcare, infrastructure, poverty eradication, and social protection, key areas highlighted by our president as essential to improving the living standards of Namibians.”
He also addressed the growing influence of artificial intelligence (AI) on the economy, warning of both opportunities and risks associated with emerging technologies.
“AI is no longer a futuristic concept but a force that is already redefining the way we live, work, and govern. From automating routine tasks to enabling complex, real-time decision-making, AI is reshaping productivity, innovation, financial markets, labour dynamics, and even the very structure of economies across the globe.”
Despite AI’s promise, Mbuende stressed the need for responsible governance and regulation.
“For all its potential, we must remain cognisant of the associated profound and far-reaching challenges that AI presents. The risks to cybersecurity are escalating, with AI tools capable of enabling sophisticated cyberattacks,” he said.
He called for proactive policies to ensure AI is harnessed responsibly while mitigating its potential risks.
BoN’s commitment to financial innovation and digital transformation was also highlighted, with several initiatives aimed at fostering a modern banking environment.
“Through its digital transformation programme, regulatory sandbox, FinTech strategy, adoption of intelligent systems, and STEAM education programme for young rural Namibians, the Bank is not only embracing the AI revolution but also actively shaping its responsible application within our financial sector and country,” Mbuende said.
