At the launch of the Bank of Namibia’s 2024 Annual Report last week, Dr. Kaire Mbuende, Director General of the National Planning Commission, underscored the urgent need to responsibly harness artificial intelligence (AI) within the financial services sector. Speaking at the event, Dr. Mbuende emphasized that while AI presents transformative opportunities for economic advancement, its deployment must be guided by robust ethical frameworks to mitigate risks and ensure equitable benefits for all Namibians.
The Annual Report, themed “The Impact of Artificial Intelligence on the Economy,” highlights AI’s growing influence across industries, particularly in finance. Dr. Mbuende noted that AI is no longer a distant concept but a reality reshaping productivity, innovation, and service delivery. In the financial sector, AI-driven tools are revolutionizing fraud detection, risk management, and customer experience, enabling institutions like the Bank of Namibia to streamline operations and enhance efficiency. For instance, AI algorithms can analyze vast datasets in real time, identifying suspicious transactions and reducing operational costs. Similarly, automated systems are improving access to financial services, particularly for underserved populations, by simplifying processes such as loan approvals and digital payments.
However, the report also sounds a cautionary note. Dr. Mbuende warned that unchecked AI adoption carries significant risks, including escalating cybersecurity threats, job displacement in sectors vulnerable to automation, and ethical dilemmas tied to data privacy and algorithmic bias. “AI holds great promise, but we must remain vigilant to its challenges,” he stated. “The rise in AI-enabled cyberattacks, potential erosion of employment opportunities for low-skilled workers, and biases embedded in decision-making systems demand proactive governance.”
Central to Dr. Mbuende’s address was the call for policymakers and regulators to strike a delicate balance between fostering innovation and safeguarding public interests. He stressed the importance of creating regulatory environments that incentivize ethical AI development while protecting consumer rights. This includes establishing guidelines for data privacy, ensuring transparency in AI-driven decisions, and investing in digital literacy programs to equip citizens with the skills needed to thrive in a technology-driven economy.
The Bank of Namibia has already taken strides in this direction. Through its digital transformation initiatives, such as a regulatory sandbox for fintech startups and the adoption of intelligent systems, the Bank is positioning itself as a regional leader in responsible AI integration. Additionally, its STEAM (Science, Technology, Engineering, Arts, and Mathematics) education program targets rural youth, aiming to bridge the digital divide and prepare future generations for emerging opportunities in tech-driven sectors. Dr. Mbuende praised these efforts, stating, “The Bank is not merely adapting to change—it is actively shaping a future where technology serves humanity, not the other way around.”
A key highlight of the event was the announcement of Namibia’s upcoming fast payment solution, designed to reduce transaction costs and enhance financial inclusion. This initiative aligns with the Bank’s broader strategy to ensure that AI-driven innovations benefit all citizens, particularly those in marginalized communities. “Access to financial services must be universal, secure, and affordable,” Dr. Mbuende remarked. “Technological advancements should dismantle barriers, not reinforce inequalities.”
The speech also touched on broader economic challenges, including global uncertainties, rising debt levels, and the ethical complexities of AI. Dr. Mbuende echoed President Netumbo Nandi-Ndaitwah’s call for institutions to move beyond “business as usual” and deliver tangible progress. He reaffirmed the government’s commitment to collaborating with the Bank of Namibia to build a “smart, resilient, and inclusive economy” capable of navigating the Fourth and Fifth Industrial Revolutions.
Notably, the Bank’s declaration of a record N$720 million dividend to the National Treasury underscores its role in supporting public investments in education, healthcare, and infrastructure—sectors critical to national development. Dr. Mbuende hailed this achievement as a testament to the Bank’s fiscal prudence and alignment with Namibia’s long-term goals.
In closing, Dr. Mbuende invoked Nelson Mandela’s iconic words: “It always seems impossible until it’s done.” He urged stakeholders to approach AI’s challenges with unity, ethical rigor, and a shared vision for a prosperous Namibia. “We are too few to be poor,” he asserted. “Let us harness AI not as a tool of exclusion