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Namibia’s central bank is keeping its options open as it steadily builds out its domestic gold reserves. Deputy Governor Nicholas Mukasa confirmed that the Bank of Namibia (BoN) will pause to evaluate its international reserve portfolio in the first quarter of 2027 before deciding whether to expand its gold holdings beyond the initial target established under Phase One of its accumulation initiative.
The first phase of the programme is currently in full swing, designed to bolster the national balance sheet through structured, monthly purchases of fine gold directly from domestic mining operations, using the Namibia dollar. This strategy not only integrates local mineral wealth into the country’s sovereign assets but also establishes a clear blueprint for domestic resource leverage.
“We want to first of all focus on phase one and then, in the first quarter of next year, we can sit as an institution and decide and say, look, fine, we are now at the 3% target that we wanted for phase one. What do we do now in phase two?” Mukasa noted, highlighting the central bank’s deliberate and disciplined approach to asset diversification.
The immediate goal remains reaching a threshold where physical gold constitutes at least 3% of Namibia’s international reserves. As of July 2026, official reserve assets totaled N$58.04 billion, with gold account holdings standing at N$573.4 million roughly 0.99% of the overall basket. At that time, the bank held approximately 8,574 fine troy ounces, valued at US$4,046.15 per fine troy ounce.
“We want to ensure that at least we have 3% of our reserves denominated in gold, so that’s the plan we have for phase one, and that is basically in full swing at this stage,” Mukasa emphasized.
To achieve the 3% benchmark assuming overall reserve levels and market prices hold steady the central bank’s gold asset value will need to expand to approximately N$1.74 billion. That requires an addition of about N$1.17 billion in local gold purchases, bringing total holdings to roughly 25,721 fine troy ounces. In practical terms, the bank must acquire an additional 17,147 fine troy ounces from local mining operations to complete the initial phase.
While gold represents a strategic hedge for long-term national stability, foreign currency assets continue to anchor the country’s liquidity. At the end of July 2026, foreign currency reserves stood at N$53.74 billion comprising N$40.43 billion in securities and N$13.31 billion in currency and deposits. A prospective second phase, along with any further capital allocation toward gold, remains strictly contingent on the evaluation slated for early 2027.
