Johannes !Gawaxab, Governor of the Bank of Namibia, warned of potential trade impacts on Namibia due to economic shifts between South Africa and the US. He highlighted the significant role of US companies in South Africa, emphasizing the importance of monitoring exchange rates and trade dynamics, particularly as Namibia’s economy is closely linked to its South African counterpart.
The Governor of the Bank of Namibia (BoN), Johannes !Gawaxab, has expressed concerns regarding potential trade repercussions on Namibia stemming from economic changes and policy uncertainties between South Africa and the United States. During the BoN’s Monetary Policy Announcement for 2025, he emphasized the importance of monitoring exchange rate variations and trade dynamics closely.
!Gawaxab highlighted that over 600 US firms operate in South Africa, providing employment to more than 200,000 individuals. He noted that trade between the US and South Africa constitutes approximately 5% of South Africa’s GDP, indicating that any disruptions could have significant implications for Namibia, particularly through exchange rate fluctuations.
The governor pointed out that Namibia’s economy is closely tied to South Africa, as the Namibian currency is pegged to the South African rand. He urged that developments in trade relations between the two nations and the US should be observed, as they correlate directly with Namibia’s GDP, inflation, and economic growth.
!Gawaxab remarked that the situation requires diligent monitoring, especially in light of policy uncertainties affecting revenue within the Southern African Customs Union (SACU). He cited recent geopolitical dynamics, including US President Donald Trump’s decision to freeze aid to South Africa, as critical factors for consideration moving forward.
In summary, the Bank of Namibia’s governor has raised alarms regarding the potential economic fallout for Namibia due to shifting trade relations and uncertainties between South Africa and the US. The close tie of the Namibian currency to the rand positions Namibia to experience ripple effects from any disruptions. Continuous monitoring of these external factors will be essential to safeguard the Namibian economy and its growth trajectory.
Original Source: www.observer24.com.na
