The Bank of Namibia (BoN) recently welcomed a high-level delegation from Germany’s Deutsche Bundesbank for a three-day working visit aimed at strengthening bilateral relations and fostering dialogue on pressing global financial sector challenges. The delegation, led by Burkhard Balz and Martin Theurer, both members of the Executive Board of the Deutsche Bundesbank, included senior officials and focused on enhancing cooperation between the two central banks.
The visit, which took place from March 4 to March 6, 2025, provided a platform for the Bundesbank delegation to engage with key Namibian stakeholders, including the Office of the President, Parliament, the Ministry of Finance, the National Planning Commission, and the European Union. Discussions centered on economic and financial cooperation, global economic developments, and emerging challenges in the financial sector.
During the visit, Theurer delivered a lecture titled “Rising Challenges in the Banking Industry,” offering in-depth insights into how geopolitical tensions, digital transformation, and climate change are reshaping the global banking landscape. He emphasized that while Namibia and Germany face distinct domestic challenges, they also share common global issues that require coordinated solutions. Mr. Theurer cautioned financial institutions against short-term regulatory rollbacks, warning that such measures could lead to long-term instability.
“The global banking industry is at a crossroads,” said Theurer. “Geopolitical risks, digital transformation, and climate change are not just challenges but also opportunities for innovation and resilience. Financial institutions must proactively manage these risks to ensure long-term stability.”
In addition to addressing banking challenges, Burkhard Balz delivered a lecture titled “The Impact of the Digital Euro on the Financial Sector.” The lecture, attended by key stakeholders from Namibia’s financial sector, explored the ongoing development of Europe’s central bank digital currency (CBDC) and its potential implications for the global financial ecosystem, including African economies.
Balz highlighted the transformative potential of digital currencies, noting that the digital euro could enhance payment efficiency, reduce transaction costs, and promote financial inclusion. However, he also cautioned that the adoption of CBDCs requires careful consideration of regulatory frameworks and cybersecurity risks.
The visit builds on a Memorandum of Agreement signed between the Bank of Namibia and the Deutsche Bundesbank in June 2022, which marked the beginning of a new era of collaboration. The agreement focuses on advancing training, technical assistance, and benchmarking in key areas of central bank competence, including digital transformation, macroeconomic research, and sustainability.
Since the signing of the agreement, the two central banks have worked closely to identify and pursue new areas of cooperation. This includes joint efforts in digital currency development, innovation, and enhancing regulatory frameworks to promote financial stability and economic resilience.
In a statement, the Bank of Namibia expressed its appreciation for the enduring partnership with the Deutsche Bundesbank and reaffirmed its commitment to fostering meaningful cooperation. “This high-level engagement has reinforced the importance of collaboration in addressing global financial challenges and seizing opportunities for sustainable growth,” said Naufiku Mamunime, Technical Expert for International Relations and Sustainability at the Bank of Namibia.
Moving forward, both institutions plan to continue exchanging expertise, strengthening regulatory frameworks, and exploring innovative solutions to navigate the evolving economic landscape. The visit underscored the shared commitment of Namibia and Germany to promoting financial stability, economic resilience, and sustainable development.
The successful engagement between the Bank of Namibia and the Deutsche Bundesbank serves as a model for international cooperation in addressing complex financial challenges. By leveraging their respective strengths and expertise, the two central banks aim to create a more stable and inclusive global financial system.
As Namibia continues to navigate the challenges of digital transformation, climate change, and economic uncertainty, partnerships like these will play a critical role in shaping a resilient and prosperous future for the country and the region.