BoN Strengthens Global Ties To Support Financial Stability

The Bank of Namibia (BoN) renewed its five-year Memorandum of Understanding (MoU) with Germany’s Deutsche Bundesbank Earlier this month with the aim of strengthening its expertise in financial stability, digital transformation and reserves management, the Bank said.

In a written response to questions by Business Pulse 360°, BoN`s Deputy Director for Corporate Communications, Naufiku Hamunime said that the memorandum provides a framework for technical assistance, specialised training and knowledge-sharing as central banks respond to emerging financial risks, technological advances and changing regulatory requirements.

She explained that the cooperation was an investment in its ability to carry out its responsibilities.

“As the country's central bank, the bank plays a critical role in maintaining monetary and financial stability, promoting a sound financial system and safeguarding confidence in the financial sector,” Hamunime said.

According to her, the partnership would strengthen its ability to oversee financial risks and respond to emerging challenges, including technological changes and evolving regulatory requirements.

“By strengthening the Bank's technical capabilities in areas such as financial stability, digital transformation, research, macroprudential oversight, and reserve management, the partnership enhances the institution's ability to execute its mandate effectively,” she said.

BoN has received expert missions and technical assistance through the European System of Central Banks (ESCB)-Africa capacity-building programme, which has supported employee development across areas including financial stability, macroprudential oversight, IT, digital transformation, macroeconomic research, statistics and sustainability, BoN said.

The support has covered financial stability and macroprudential oversight, alongside information technology, digital transformation, macroeconomic research, statistics and sustainability.

The deputy director further noted the effects of stronger institutional capacity could extend beyond its own operations to financial institutions, businesses and the wider public.

“Commercial banks and other financial institutions benefit from a stronger regulatory and financial-stability environment,” she explained.

Hamunime added that businesses and the public also benefit from a stable and well-functioning financial system.

In addition, the Bank has identified financial stability, sustainability and reserves management as priority areas for further technical support, stating that the future activities would be guided by its institutional needs and developments in global finance.

The partnership has also supported five Namibian students admitted to the Deutsche Bundesbank University of Applied Sciences in Hachenburg, Germany, in 2024, where they are pursuing a three-year Bachelor of Science degree in Central Banking.

“The selection process was advertised through local universities, print media, television and the Bank’s platforms. Applicants had to meet academic and German-language requirements, while shortlisted candidates underwent mathematics and German proficiency assessments, followed by joint interviews with the university. A total of 82 applications were received in 2024,” BoN said.

BoN said it remains committed to bringing more Namibian students into the programme in future.

The partnership was established in 2011 and has since been renewed in 2016, 2022 and 2026, marking its third renewal.

The memorandum runs for five years and provides a framework for continued technical assistance, specialised training, workshops and study visits.

BoN described the partnership as an investment in its institutional capacity to serve the country.

“That said, the partnership is an investment in institutional capacity that supports the Bank's ability to fulfil its responsibilities in the interest of the Namibian economy and its people,” the Bank said.