Bank of Namibia governor Johannes !Gawaxab believes the time is ripe for businesses to readjust their operational models in order to arrest the negative effects of the pandemic and revive the struggling economy. !Gawaxab shared this sentiment when announcing an increase in the repo rate to 4% this week and noted Covid-19 made many businesses unsustainable to the extent they need to reconsider their current business models.

“We have a crisis caused by the pandemic that came with demand and supply shocks. It surely obliterated some business models. Unless businesses start thinking differently and pivot to other opportunities, they will probably not going to be successful,” he said.

!Gawaxab stated it is time for businesses to relook their operating models: “This is the time for businesses to allocate costs and do it more effectively”.

Looking at the petition, the central bank received from the Black Business Leadership Network of Namibia (BBLNN) last month, the governor said the bank is planning to collectively sit with the affected businesses to craft collective solutions for them.

“The crises should be understood that it was not man-made but originated from the pandemic. So, we are sitting with businesses to help them find amicable solutions to their problems,” he explained. 

The letter of demand from the BBLNN was delivered to the Bank of Namibia, Office of the Prime Minister, finance ministry and Development Bank of Namibia in which the network demanded government intervention with their collective challenges.

!Gawaxab also stressed that monetary policy has its limits and a central bank cannot be expected to safeguard all businesses, including businesses made unviable by the pandemic.

- mndjavera@nepc.com.na