In a move to support sustainable economic growth and combat climate change, the Bank of Namibia has officially become a member of the Network for Greening the Financial System (NGFS).

This network, composed of central banks and financial supervisors, aims to promote environmentally responsible management within the financial sector.

As of December 2023, the Bank of Namibia (BoN) was inducted as a plenary member, standing alongside 134 other members and 21 observers, to foster a collective response to meet the Paris Agreement's objectives.

Namibia, with its semi-arid climate and vulnerability to drought, faces substantial environmental challenges that impact food security and the economy.

Recognising these challenges, the Bank of Namibia is poised to take a proactive role in developing policies that support climate risk mitigation and adaptation efforts in the financial sector.

Bank of Namibia Governor Johannes !Gawaxab remarks that Namibia's acceptance into the NGFS marks a pivotal stride in aligning the country's economic growth with environmental sustainability.

He stated further that Namibia is ready to address climate-related challenges and contribute innovative solutions to the global decarbonisation effort, including through the nation's ambitious green hydrogen initiative.

The Bank of Namibia has introduced internal steps to prioritise sustainability, having established a Sustainability Function to guide and harmonise its strategies in accordance with its 2022–2024 Strategic Plan.

By joining the NGFS, the bank aims to enhance its sustainability efforts, engage in global discussions, and benefit from the exchange of knowledge with fellow central banks.

The Bank's membership in the NGFS is expected to bolster the domestic financial sector's ability to navigate climate-related risks and champion the integration of sustainable finance principles worldwide.