BoN signs gold purchase agreement with Navachab Mine

WINDHOEK, 25 MAR (NAMPA) - The Bank of Namibia (BoN) has signed a gold purchase agreement with QKR Namibia Navachab Gold Mine in efforts to strengthen the country’s foreign reserve position and enhance economic resilience.
In a statement issued on Tuesday, the central bank said the agreement provides for the structured acquisition of locally produced gold, in line with international reserve management standards and its long-term strategic objectives.
The initiative forms part of the BoN’s broader gold acquisition programme aimed at diversifying reserve assets, improving financial stability, and boosting Namibia’s capacity to withstand external economic shocks.
“As a gold-producing nation, this approach supports the retention of national resources and aligns with the bank’s mandate to safeguard macroeconomic stability and promote national economic interests,” it said.
It further noted that gold remains a key component of reserve portfolios due to its ability to hedge against inflation, provide stability during economic uncertainty and serve as a reliable store of value.
BoN Governor Ebson Uanguta said the agreement marks a significant 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.
QKR Namibia Navachab Gold Mine Managing Director George Botshiwe welcomed the partnership.
“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,” he said.
The bank indicated that the gold acquisition programme will be implemented on a phased basis, supported by established governance structures, risk management processes and operational safeguards.
“This approach ensures that acquisitions are undertaken prudently, with due consideration to market conditions and institutional readiness,” it added.
The BoN reaffirmed its commitment to maintaining a diversified reserve position while ensuring transparency and accountability in executing its mandate.
(NAMPA)
MWY/AS