The Bank of Namibia (BoN) has become a plenary member of the Network for Greening the Financial System (NGFS), the bank announced.
The NGFS is composed of central banks and prudential supervisory authorities from around the world, focusing on advancing environmental and climate risk management in the global financial sector.
“The Bank’s acceptance into the NGFS is a momentous step forward in our commitment to sustainable economic growth, dovetailing national efforts that have put Namibia on the map by providing solutions to the global decarbonisation effort through the pursuit of the country’s highly ambitious Green Hydrogen initiative,” said BoN Governor Johannes !Gawaxab.
According to Naufiku Hamunime, Principal: International Relations & Sustainability at BoN, the bank’s application received unanimous approval from the NGFS. As such, the bank will collaborate with other entities globally to strengthen the financial system’s capacity in managing risks and channeling capital towards green and low-carbon investments.
“Namibia, being disproportionately vulnerable to the effects of climate change, recognizes the critical importance of aligning its financial system with green principles. As a semi-arid country facing recurring drought challenges, the negative impacts on food security and underlying macroeconomic risks are profound,” she said.
Hamunime mentioned that the bank aims to strengthen the domestic financial sector’s capacity to assess and manage climate-related risks and actively advocate for the integration of sustainable finance principles on the global stage.
“Joining the NGFS reinforces this commitment and will provide the tools, knowledge, and collaborative platform needed to accelerate progress toward a more sustainable future. The Bank is excited about the potential benefits of joining the NGFS and looks forward to contributing positively to this transformative initiative,” she said.
With this membership, the Bank of Namibia joins a prestigious network of 134 members and 21 observers committed to strengthening the collective response to meet the goals of the Paris Agreement