Namibian central bank considers launching central bank digital currency for cross-border transactions
Namibia Delays Central Bank Digital Currency Launch, Focuses on Payment System Enhancement
Namibia, a country in Southern Africa, has put the rollout of its central bank digital currency (CBDC) on hold, as the Bank of Namibia (BoN) considers advice from the International Monetary Fund (IMF) to fine-tune its approach towards the CBDC launch.
The IMF, in a technical assistance report, suggested Namibia should prioritise enhancing its existing payment system rather than pursuing an immediate CBDC launch. The advice was given in light of the fact that Nigeria was the first African country to launch a CBDC - the eNaira - in 2021.
The IMF also asked Namibia to focus on researching the potential of a digital currency to affect its monetary policy and financial stability. This is a crucial step, as CBDCs are seen as a promising solution to longstanding challenges of cost, speed, and transparency in cross-border payments.
As of mid-2025, the BoN is actively exploring the issuance of a CBDC as part of its broader fintech and financial inclusion strategy. The BoN governor, Johannes !Gawaxab, has publicly indicated that the country may soon introduce a CBDC, signaling serious interest in this digital currency frontier for Namibia.
The BoN's exploration aligns with regional and international trends where African central banks are assessing or piloting CBDCs to enhance financial inclusion and improve cross-border payments efficiency. Key motivations include reducing financial exclusion and modernizing payment systems, particularly important in a context where fragmented infrastructure and regulatory complexity exist across Africa.
The IMF has been closely monitoring African CBDC developments, including Namibia’s, and provides technical advice and updates on progress, reflecting its interest in leveraging CBDCs for financial stability, inclusion, and efficiency.
In the Southern African context, Namibia operates within the SADC-RTGS system, which has seen transaction growth and is part of regional payment integration efforts. Such infrastructure could provide a foundation for Namibia’s CBDC to contribute to faster and less expensive cross-border payments in Southern Africa if linked effectively.
Collaborations with other African central banks are implied by Namibia’s participation in continental dialogues on CBDCs and cross-border payment enhancements. Although Namibia’s exact bilateral or multilateral partnerships on CBDCs are not detailed in the current results, the regional trend involves cooperation to adopt interoperable standards and regulatory frameworks to address shared challenges.
It's important to note that in 2023, the Reserve Bank of Zimbabwe launched a gold-backed digital currency as an alternative store of value to the Zimbabwean dollar. Ghana also plans to launch its CBDC - the eCedi - before the end of the year after holding off on the launch for two years despite successful pilots.
In conclusion, while Namibia has put the immediate rollout of its CBDC on hold, the country remains committed to exploring this digital currency frontier as part of its broader fintech and financial inclusion strategy. The BoN is focusing on enhancing its existing payment system and researching the potential impact of a digital currency on its monetary policy and financial stability. The country benefits from regional payment systems like SADC-RTGS, providing a possible platform for cross-border CBDC interoperability. The IMF's involvement continues to be crucial, as it provides technical advice and updates on Namibia's progress, emphasizing the importance of financial stability and inclusion considerations.
- Namibia, despite delaying its central bank digital currency (CBDC) launch, is actively exploring the issuance of a CBDC, indicating a serious interest in this digital currency frontier.
- The advice given by the IMF to Namibia emphasizes the importance of prioritizing enhancements to its existing payment system over an immediate CBDC launch, as evidenced by Nigeria's successful launch of the eNaira in 2021.
- The BoN's exploration aligns with regional trends in Africa, where central banks are assessing or piloting CBDCs to address issues such as financial exclusion and modernize payment systems.
- The IMF's ongoing monitoring of African CBDC developments, including Namibia’s, plays a crucial role, as it provides technical advice and updates on progress, with a focus on leveraging CBDCs for financial stability, inclusion, and efficiency.
