The Bank of Namibia (BoN) has signed a gold purchase agreement with QKR Namibia Navachab to strengthen the country’s financial reserves.
The agreement will allow the central bank to buy gold produced in Namibia in a structured way. This forms part of BoN’s plan to improve its reserve management and make the economy more stable.
Governor of the central bank, Ebson Uanguta, said this development forms part of the Bank’s broader gold acquisition programme, which aims to strengthen the composition of reserve assets, enhance financial resilience, and support the country’s capacity to respond to external shocks.
He added that as a gold producing nation, this approach also supports the retention of national resources and aligns with the Bank’s mandate to safeguard macroeconomic stability and promote national economic interests.
Moreover, gold possesses other desirable characteristics that make it suitable for inclusion in a foreign reserve portfolio. These include providing macroeconomic stability during economic shocks, hedging against inflation, and serving as a store of value.
“This agreement represents an important step in advancing the Bank’s reserve diversification strategy. Gold continues to play a critical role as a store of value and a hedge against global uncertainty. By partnering with domestic producers, we are not only strengthening our reserves but also supporting local value creation and economic development,” he said.
The Bank will implement the gold acquisition programme in phases, supported by established governance structures, risk management processes, and operational safeguards. The approach ensures that acquisitions are undertaken prudently, with due consideration to market conditions and institutional readiness.
“As Navachab Mine, we are proud to partner with the Bank of Namibia on this important initiative, which underscores the vital role that public-private partnerships play in advancing sustainable development. When industry and institutions work together with clear intent, we can move beyond extraction and towards meaningful long-term value creation,” said George Botshiwe, Managing Director of QKR Namibia Navachab Gold Mine.