Bank of Namibia Governor, Johannes !Gawaxab said Namibia has sufficient reserves to cover its imports for nearly six months.
!Gawaxab said this while speaking during a public lecture on navigating current economic shocks held at the Kavango East Regional Council building on Wednesday.
He said Namibia has about N.dollars 42/43 billion to pay for its import cover of about 5.8 months.
“You should not be worried about the foreign reserves of the country,” he said.
The public lecture unpacked the sources of the country’s current inflationary pressures, as well as how the monetary authority is acting to contain inflation and its second-round effects.
!Gawaxab said COVID-19 and its variants, the Ukraine/Russia conflict and the associated supply chain disruptions render the current times uncertain.
He explained that the core responsibility of the bank is to manage, contain and promote price stability.
“We need to make sure the inflation is not eating away our hard-earned income. We also advise the government on fiscal matters,” he said.
He said the bank has the responsibility to manage the country’s foreign reserves and the currency of the country.
The list of the import bill, he added, shows 15 products that are currently imported in significant quantities that can be substituted with domestically produced goods as some are already produced locally.
Some of the 15 products imported are maize, sunflower oil, fruits, frozen chicken, margarine, yoghurt and buttermilk, fertilisers, as well as washing and cleaning preparations, amongst others.
In total the import bill of these 15 products translated to N.dollars 5 billion in 2021.
“If we substitute these imports or a significant portion thereof by producing them cost-effectively here at home, it will have a massive impact with added multiplier benefits,’ he stated.
In order to recover and grow, !Gawaxab said Namibia needs to maintain macroeconomic stability, including restoring fiscal sustainability, stable prices and financial systems.
The country also needs to implement the reforms resolutely to attract the needed investment and encourage private sector participation, he added.
Source: The Namibian Press Agency
