WINDHOEK, Sept. 9 (Xinhua) -- Namibia's central bank governor Johannes Gawaxab on Friday said the country must step up efforts to create an environment that will lead to sustaining the economic recovery.
"We are not out of the woods yet, and our economy desperately needs appropriate stimulus, which can take the form of credit extension for productive purposes to fuel the economy. Banking institutions should continue to lend responsibly to critical sectors of the economy to sustain the economic recovery we have seen over the last eight months," he said in a statement.
Banking institutions should play a critical role in the recovery effort as financial intermediaries are charged with safe-keeping depositors' funds and lending these safely and responsibly, he said, urging banking institutions to strike a balance between the interests of all stakeholders in this post-COVID environment and where feasible do more to assist the economy.
To ensure that financial institutions respond effectively and prudently to the challenges businesses and households face, the Bank of Namibia has retained the relief measures instituted since the pandemic's outbreak, he added.
"Our fortunes and Namibia's prosperity are dependent on how we come together as a financial sector, businesses, and policymakers to reverse recent economic hardships, restore business confidence, and revive ailing businesses. By doing so, we can create jobs and put our economy on a more stable footing. I do not doubt that we can stem the tide and turn our fortunes around," he said.
Namibia Private Credit Extension grew by 3.3 percent on average in the first seven months of 2022 and is expected to grow by 5 percent in 2022 as a whole.
The Bank of Namibia forecasts the economy to grow by 3.2 percent this year.
