The Bank of Namibia, the Ministry of Finance, the Namibia Financial Institutions Supervisory Authority (NAMFISA), and the entire financial sector have taken initial steps to establish a coordinated forum to speak with one voice and advocate for sustainability within the financial sector and the economy.
This was announced earlier today by Bank of Namibia Governor, Johannes Gawaxab who said the forum is set to be launched in the coming weeks.
“This platform will foster coordination and collaboration on sustainability matters, enabling financial institutions to both mitigate climate risks and seize opportunities presented by the green transition,” he said.
Around the world, central banks and supervisors are grappling with how best to address the complexities introduced by climate change. Speaking about this, Gawaxab said that from advanced countries to our counterparts in emerging markets and developing economies, the rising frequency of severe weather events has begun to influence monetary policy dimensions.
“For instance, in Namibia, we have seen droughts drive up food prices, exacerbating inflationary pressures, disappointedly affecting the poor and vulnerable members of society – after all, inflation is termed ‘the cruellest tax of all’, he said.
He went on to say, inflation, especially climate-induced inflation, requires a fine balancing act to manage, especially when coupled with high unemployment and weak economic conditions.
The climate crisis further affects food security, agricultural productivity, and causes severe damage to homes and critical infrastructure. These disruptions are reminders that sustainability is no longer a choice but a necessity.
“Additionally, global inequality remains challenging. According to a recent report by Oxfam, since 2020 the world’s five richest men have more than doubled their wealth from US$405 billion to US$869 billion —at an astonishing rate of US$14 million per hour. Meanwhile, the poorer half of the global population owns just 2% of the world’s wealth. If these trends persist, the world will have its first trillionaire within a decade, but poverty won’t be eradicated for another 229 years. This is clearly unsustainable. Although Namibia has made considerable progress, we still face deep inequalities as a nation,” Gawaxab said adding, “To navigate these mega-trends, we cannot fold our hands and wait for external help. We need to take bold steps to reshape and reimagine the financial system, and indeed the broader economy, working to align it to our national goals of sustainability and build the necessary resilience in the face of such threats.”