Omake Moment with the Namibia Trade Network

Southern African Central Bank Governors Unite for Sustainable Finance

We celebrate the Bank of Namibia for having hosted the 57th Committee of Central Bank Governors (CCBG) meeting in Swakopmund. The event shone a spotlight on sustainability within the financial system, drawing attention to the pressing issue of climate change. Ms Saara KuugongelwaAmadhila, the Prime Minister of the Republic of Namibia, inaugurated the gathering.

The SADC Committee of Central Bank Governors (CCBG) was established to promote and achieve close cooperation among central banks within the Community. It addresses the development of financial institutions and markets, cooperation regarding international and regional financial relations, as well as monetary, investment and foreign exchange policies.

In her welcoming address, Prime Minister KuugongelwaAmadhila acknowledged the relentless natural disasters, droughts and floods that have plagued Southern Africa due to climate variability. She cited food insecurity as a consequence of the El Niño phenomenon in Namibia and pledged the government’s support through a drought relief programme until the end of June 2024. She emphasised the necessity for the financial sector to devise innovative strategies to mitigate climate-related shocks and their economic consequences.

Following the Prime Minister’s address, a panel discussion ensued, which included the Governor of the South African Reserve Bank and Chair of the CCBG, Mr Lesetja Kganyago; Governor of the Bank of Namibia, Mr Johannes !Gawaxab; Governor of the Bank of Mozambique, Mr Rogério Zandamela; Executive Board Member of the Deutsche Bundesbank, Dr Sabine Mauderer and the Chief Executive Officer of the Environmental Investment Fund of Namibia, Mr Benedict Libanda.

The panellists emphasised the significance of robust environmental and climate risk management within the financial sector. Southern Africa, despite its minimal contribution to global emissions, is disproportionately susceptible to the adverse effects of climate change, including cyclones, droughts and flooding, which disrupt economic activities and amplify macroeconomic risks. Mr Lesetja Kganyago further drew attention to the importance of central banks addressing climate change within their financial stability and monetary policy mandate. He highlighted the South African Reserve Bank’s initiatives in developing climate change indicators and disclosure guidance to enhance the resilience of financial institutions.

Mr Johannes !Gawaxab discussed Namibia’s vulnerability to recurring droughts and its commitment to the global transition agenda, particularly in green hydrogen production. This initiative aligns with Namibia’s climate resilience goals and broader economic development objectives.

The discussions reaffirmed the commitment of central banks and financial institutions to address climate change challenges. They underscored the importance of building resilience within the financial system while actively contributing to environmental conservation. Moreover, the event stressed the necessity for international cooperation and equitable partnerships to ensure a greener financial system that leaves no one behind.