BoN prepares for first oil

The Bank of Namibia (BoN) is preparing for what governor Ebson Uanguta describes as a new phase of economic transformation for the Namibian economy.

“Emerging sectors, increased financial flows and rapid digital innovation are reshaping the structure of our economy and the transmission of risk,” he said.

“These developments clearly present significant opportunities, but they also require very careful and forward-looking macroeconomic stewardship,” he continued at Wednesday’s announcement of the Monetary Policy Committee’s decision to keep the repo rate unchanged at 6.50%.

Addressing a media question related to the perception of Namibia as a rich country full of poor people, Uanguta said the best way to narrow the gap between the ‘haves’ and the ‘have-nots’ is to identify new drivers of economic growth.

“We are pleased that this year is a very significant one, where potentially, because of the new discoveries offshore Namibia in oil and gas, we may anticipate a final investment decision (FID) related to TotalEnergies’ Venus development. If that decision is taken, it will have a positive impact on our economy and its structure going forward,” he said.

Expectations

Later, in response to a question about expectations for his leadership - having taken over the reins at the banker to government in December 2025 - he said: “My leadership is one of continuity and consistency.”

He emphasised that while leadership transitions, the mandate remains.

“We see that there will be changes to our economy. We therefore need to prepare our institution to embrace that new economy,” he said.

Apart from digital innovation, oil and gas are likely to be key drivers of this new economic phase, he added. “We need to build capacity. If there is one key priority that I will emphasise, it is capacity building at the Bank of Namibia and nationally,” he stressed.

“Second, I want the Bank of Namibia to be recognised as a knowledge-based institution,” he said. “Thirdly, in embracing that new economy, you will see that we will be changing a number of things in terms of sharpening the tools at our disposal.”

“When oil production begins, for instance, you will start seeing significant inflows into our economy,” he said. According to the governor, whether oil becomes a blessing or a curse depends on how those inflows are managed.

“As a central bank, we are fundamental to that process, and we are putting in place the necessary instruments to prepare for first oil. Part of that preparation is ensuring that our monetary policy framework is well refined and able to respond to the new economy,” he said.

Appointments

Uanguta added that the appointment of Dr John Steytler and Helvi Fillipus as independent member and economic adviser, respectively, to the BoN Monetary Policy Committee (since February 2026) will “help us to sharpen our teeth, sharpen our minds and prepare for that new economy”.

As the structure of the economy is likely to change, he said, “we will not wait until that time comes; we are preparing now.” Although monetary policy may remain broadly unchanged for the next two to three years, he said significant preparatory work is already taking place behind the scenes to ensure readiness for structural shifts.

“If first oil comes and we do not have sufficient instruments to manage the inflows, and the monetary policy framework is not prepared to respond, then hold the current leadership accountable. But I believe we will not disappoint,” he said.

Steytler also weighed in on the need for fast but sustainable growth linked to oil. “Take the oil discoveries, for example. If an oil company such as TotalEnergies comes in, it typically has a development horizon of 15 to 25 years. That is where substantial long-term benefits can be realised — but we must grow responsibly,” he said.