Namibia’s savings increase to N$65 billion

Namibia has enough savings to cover its import needs for the next four months and three weeks – even if it does not export any goods.

According to Bank of Namibia governor Johannes !Gawaxab, the country’s preliminary stock of international reserves is N$65 billion.

This is an increase of about N$5 billion when compared to October last year, where reserves stood at N$60.9 billion.

A country’s international reserves are like a country’s savings account.

“The increase was mainly due to the Southern African Customs Union (Sacu) receipts and exchange rate depreciation.The latest level of reserves translates to an estimated import cover of 4.3 months,” says !Gawaxab.

In the 2024/25 financial year, Namibia received an extra N$4.5 billion in Sacu revenues.

This was because in previous years, due to Covid-19 and load-shedding in South Africa, the country had less revenue.

However, going forward, those receipts will decrease significantly from N$28 billion to N$21 billion for the 2025/26 financial year.

“The number for Sacu revenues will be significantly lower when compared to last year’s N$28 billion,” says !Gawaxab.

This is also due to less general imports by Sacu members, which translates to less import duties.

Additionally, the country’s trade deficit increased to N$42 billion.

This was due to higher imports predominantly in consumer goods, machinery and the base metals categories.

“Namibia’s merchandise trade deficit continued to deteriorate, reaching N$42 billion during 2024 from N$31 billion recorded in 2023,” says !Gawaxab.

According to him, there has been a decline in revenue from exports due to a decline in uranium and diamond sales.

“The decline in export earnings, notably from diamonds and uranium, further exacerbated the trade deficit,” says !Gawaxab.

Namibia’s economy is currently driven by mining, especially diamond mining.

“We see positive sentiments in the non-diamond mining sector and the tourism sector. Moreover, the new operator at Walvis Bay will boost the transport sector,” says !Gawaxab.

He adds that the scheduled construction of three mines will contribute to economic growth projections outside the non-diamond sector.