Namibia’s central bank governor, Johannes !Gawaxab, has warned that rising tensions between the United States and South Africa could destabilize Namibia’s economy.
Given Namibia’s strong economic ties with both nations and its currency peg to the South African rand, any volatility in the rand could have direct repercussions, Bloomberg reported.
On February 7, former U.S. President Donald Trump issued an executive order freezing all U.S. aid to South Africa, citing alleged human rights violations linked to the country’s land expropriation policy.
The dispute has further intensified following South Africa’s case at the International Court of Justice (ICJ), where it accused Israel of genocide in Gaza—claims that remain highly contested.
Speaking at a central bank briefing, Gawaxab emphasized the need for close monitoring of the situation.
“Our currency is pegged to the South African rand, so any impact on the rand will directly affect us,” he stated. “It’s too early to determine the full economic consequences, but we must remain vigilant.”
The warning came as the Bank of Namibia’s Monetary Policy Committee announced a 25-basis-point cut in the key interest rate to 6.75%.
This marks the fourth consecutive reduction, aligning with South Africa’s monetary policy amid controlled inflation and slowing economic growth.
Because Namibia’s currency is tied to the rand, its central bank frequently mirrors decisions made by the South African Reserve Bank. As geopolitical tensions escalate, Namibia remains cautious about potential economic fallout from the U.S.-South Africa dispute.
