Namibia’s central bank promotes innovation for economic challenges.

WINDHOEK, April 11-- Johannes Gawaxab, the governor of the Bank of Namibia, the central bank, on Wednesday emphasized the need for the country to move away from traditional approaches and embrace innovative solutions to address the country's economic challenges.
   Highlighting the impact of geopolitical tensions, climatic fluctuations and the energy transition on the country's economic trajectory and financial outlook during his speech at the Cirrus Investor Conference in Swakopmund, a coastal city in Namibia, Gawaxab urged for a proactive stance.
   He outlined key initiatives from the bank aimed at modernizing the financial system to navigate these unprecedented challenges.
   "Initiatives such as the Instant Payment Solution, the Central Securities Depository Project, and the exploration of Central Bank Digital Currencies are pivotal in modernizing the financial landscape and fostering greater inclusivity," he said.
   According to Gawaxab, the introduction of the Instant Payment Solution is poised to revolutionize financial transactions, particularly in rural and informal sectors, by enabling instant and secure transactions without the need for physical travel or costly intermediaries.
   As part of the Common Monetary Area countries, Namibia is also exploring the potential of CBDCs in modernizing cross-border payments, Gawaxab said. Common Monetary Area is a monetary union that links South Africa, Namibia, Lesotho and Eswatini.
   Addressing concerns over stubborn inflation, Gawaxab highlighted the importance of maintaining price stability, providing insights into Namibia's inflationary trends, and emphasizing the need for robust policy-making to mitigate uncertainties and anchor inflation expectations.

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