Bank of Namibia secures gold supply deal

The Bank of Namibia (BoN) has signed a landmark gold purchase agreement with QKR Namibia’s Navachab Gold Mine, marking a strategic shift in how the country manages its foreign reserves.

The agreement establishes a structured framework, aligned with international reserve management standards, allowing the central bank to purchase locally produced gold. This initiative forms part of a broader programme aimed at diversifying Namibia’s reserve assets and strengthening the nation's resilience against external economic shocks.

BoN governor Ebson Uanguta stated that the deal is a pivotal step in the central bank’s long-term strategy to rebalance its reserves.

“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 move positions Namibia among a growing number of resource-producing nations that are retaining a portion of their mineral output within national financial systems rather than exporting the entirety. Gold is viewed as a strategic reserve asset due to its ability to hedge against inflation, preserve value, and provide stability during periods of global financial volatility.

On an operational level, the programme will be implemented in phases. The Bank of Namibia indicated that purchases will be guided by market conditions, internal readiness, and established governance structures. The initiative is backed by robust risk management systems to ensure the prudent accumulation of the commodity.

For Navachab, the agreement introduces a new dimension to its role in the domestic economy, shifting a portion of its output from purely export-driven flows to contributing directly to national financial resilience.

Navachab MD, George Botshiwe, noted that the partnership reflects a broader shift towards collaboration between the mining sector and public institutions.

“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 are able to move beyond extraction and towards meaningful, long-term value creation,” Botshiwe said.