The Bank of Namibia (BoN) has made history by paying out a record-breaking dividend of N$720 million for the 2024 financial year. This represents a significant increase of over 40%, compared to the N$511.47 million declared in 2023. It marks the first time in the central bank’s history that such a substantial dividend has been declared, highlighting the institution’s financial performance.
This milestone was announced yesterday at the release of BoN’s 2024 annual report, which was launched in Windhoek under the theme ‘Economic Impact of Artificial Intelligence (AI)’.
“We are delighted to announce publicly that for the 2024 financial year, we have declared a historic dividend of N$720 million to the Government of the Republic of Namibia. This dividend represents a remarkable 41% year-on-year growth from the previous year, highlighting the bank’s strong performance and commitment to contributing to national development”, central bank governor Johannes !Gawaxab stated proudly.
Alongside the dividend, the BoN has made provisions for the future, allocating N$70 million to its Building Fund Reserve.
This is designed to support the bank’s plans to expand its infrastructure, ensuring it meets evolving operational demands in the years ahead.
Meanwhile, the central bank continued its strong financial performance during the 2024 financial year.
The stellar performance was driven by growth in investments of N$10 billion year-on-year, driven by Southern African Customs Union (SACU) receipts, diamond revenue, high yields and the elevated interest rate environment globally.
“Our expenses were robustly controlled and monitored during the period. The strong top-line results contributed to the elevated operating surplus of N$1 billion in 2023. Furthermore, the weaker rand at year-end resulted in unrealised foreign exchange gains of N$226 million for the 2024 financial year, resulting in elevated surplus levels of N$1 374 395 000 (2023: N$1 782 049 000). Our strong operating performance enabled amounts available for distribution of N$1 107 214 000 (2023: N$956 889 000),” he stated.
Looking ahead, the central bank’s new strategy for 2025 to 2027 builds on past successes.
It aims to navigate the evolving operational landscape with confidence and clarity.
In this regard, the BoN is committed to shaping an agile organisation.
Looking ahead, the strategy for the period 2025 to 2027, which was launched in December last year, has been carefully crafted with insights from across the bank and stakeholders’ populace.
The strategy embodies the vision for a future-focused and responsive institution, ready to support Namibia’s economic transformation.
“Namibia is on the cusp of a new economic era, driven by the development of its natural resources and emerging industries, such as oil and gas. Our role as the central bank is to ensure that our financial systems are robust enough to support this transition.
Our new strategy enables the BoN to work closely with both the government and industry to ensure that the necessary policies, regulatory frameworks and financial infrastructure are in place to facilitate sustainable growth in these sectors,” said !Gawaxab.
He noted that the BoN has delivered an excellent set of results during 2024 operationally, strategically and financially.
“Inflation is well-contained, the financial system remains sound and stable, international reserves are adequate, payments have been efficient, and our strategy execution has been remarkable. The BoN is positioned well for the future,” beamed the governor.
“We must face the realities of AI and other intelligent technologies reshaping our operations, and our supervisory and regulatory frameworks. We should prepare for a wave of cybersecurity threats that may catch unsuspecting institutions off-guard.
Additionally, we need to reimagine banking in the context of the ever-present challenge of climate change. Namibians are calling out for a responsive financial sector that empowers them to become productive citizens,” he continued.
Director general of the National Planning Commission Kaire Mbuende commended the bank for its exemplary fiscal stewardship over the years.
“The ability to deliver stellar financial results, despite intensifying global economic headwinds, underscores the bank’s commitment to prudent fiscal stewardship and its alignment with our national development goals. These funds, as has been customary, will support frontline public investments in education, healthcare, infrastructure, poverty eradication and social protection, key areas highlighted by our President as essential to improving the living standards of Namibians,” he said.
“The central theme of this year’s annual report is befittingly looking at ‘The Impact of Artificial Intelligence on the Economy’, which could not be timelier or more consequential. AI is no longer a futuristic concept, but a force that is already redefining the way we live, work and govern. From automating routine tasks to enabling complex, real-time decision-making, AI is reshaping productivity, innovation, financial markets, labour dynamics and even the very structure of economies across the globe. Indeed, AI holds great promise.
To put this in perspective, in the financial sector alone, AI is changing how we deliver services, manage risk, detect fraud and enhance customer experience,” said Mbuende.
He noted that in government, AI offers the potential to dramatically improve policy effectiveness and benefit operational processes through faster data analysis and evidence-based interventions.
For businesses, AI can unlock new efficiencies and open global markets.