The Bank of Namibia (BoN) will begin acquiring gold from local producers Navachab and B2Gold as part of its strategy to diversify the country’s foreign exchange reserves.
Governor Johannes !Gawaxab said the bank’s goal is to hold gold equivalent to around three percent of net foreign exchange reserves, in line with global central banking practices.
“Our goal is to acquire gold from local mines, namely Navachab and B2Gold. We intend for the gold we acquire to meet international standards set by the London Bullion Market Association,” he said.
The gold, which will be refined to 99.9% purity, will be stored in the central bank’s vaults and form part of Namibia’s official reserves.
!Gawaxab stressed that the initiative is aimed at long-term stability and risk mitigation rather than short-term profits.
“The acquisition of gold is strategic and long-term. While some may argue that we are buying at a high point, our focus is on long-term stability and strategic purposes rather than short-term gains,” he said.
The BoN has already engaged with both Navachab and B2Gold, holding several meetings with mine management.
!Gawaxab noted that Namibia lacks a refinery capable of producing gold at the required purity level, as local mines can only process it to 85%. To address this, the central bank has initiated talks with refineries in South Africa.
He added that the Bank has also consulted the Ministry of Industrialisation, Mines and Energy as part of the process.
