WINDHOEK, March 24 (Xinhua) -- The Bank of Namibia has signed a gold purchase agreement with QKR Namibia Navachab Gold Mine as part of efforts to strengthen the country's foreign reserves and enhance economic resilience.
In a statement released on Tuesday, the central bank said the agreement provides for the structured purchase of domestically produced gold, in line with international reserve management practices and its long-term strategic objectives.
The move forms part of a broader gold acquisition program aimed at diversifying reserve assets, improving the country's ability to withstand external shocks, and retaining value from Namibia's natural resources, it added.
"By partnering with domestic producers, we are not only strengthening our reserves but also supporting local value creation and economic development," Bank of Namibia Governor Ebson Uanguta said in the statement.
The mining company welcomed the agreement, highlighting the importance of collaboration between the public and private sectors.
"When industry and institutions work together with clear intent, we are able to move beyond extraction and towards meaningful, long-term value creation," said George Botshiwe, managing director of QKR Namibia Navachab Gold Mine.
According to the statement, the gold acquisition program will be carried out in stages, with rules and risk management in place to ensure careful execution, and this initiative is expected to boost Namibia's financial stability and aid long-term economic growth.
Namibia is targeting gold to make up about three percent of its net foreign-exchange reserves, part of a broader rethink of how it allocates its assets.
