The Bank of Namibia has increased the repo rate by 25 basis points, from 6.5 to 7 percent.

The increase, the bank says is to maintain inflation expectations, protect the peg arrangement with South Africa and meet international financial obligations.

Bank of Namibia and the Ministry of Finance and Public Enterprises have re-launched the SME Economic Recovery Loan Scheme.  

This scheme was created with the aim of rescuing the SME sector, which was hit hard by economic headwinds, particularly the COVID-19 pandemic.
The COVID-19 pandemic, depressed profits, and financial losses due to COVID-19 and further coupled with the global economic recession and geopolitical tensions.

The buying power within communities has diminished, and this has resulted in a deteriorating state of affairs for many SMEs. 

The Bank of Namibia has again increased the repo rate, this time by 50 basis points, from 5.5 to 6.75 percent.

Governor Johannes !Gawaxab says the raise is done in an effort to anchor inflation expectations as well as safeguard the one-on-one peg arrangement with South Africa.

!Gawaxab says the decision was taken following a comprehensive review of global, regional, and domestic economic developments.

There was a need, he says, to strike a balance between controlling inflation expectations and supporting the domestic economy's recovery.

With a host of newly discovered energy sources in Namibia, including oil, gas, and green hydrogen, the Bank of Namibia's annual symposium has dissected how to maximize economic growth from renewable and non-renewable energy sources in the country.

The annual symposium was aimed at promoting policy dialogue supportive of sustainable economic development in the country. 

It also created a platform for stakeholders to debate issues critical to the country's economic development.