Namibia is turning to Ghana’s once-celebrated Gold Purchase Programme in a bold effort to fortify its national economy, strengthen the Namibian dollar, and ease pressure on dwindling foreign reserves.

The move, confirmed by Bank of Namibia Governor Johannes !Gawaxab during a statutory engagement with President Dr. Netumbo Nandi-Ndaitwah last week, reflects a growing appetite among African nations to explore local solutions in navigating global financial turbulence.

According to the Namibia Economist, the central bank plans to allocate 3% of its net foreign exchange reserves to gold purchases—an asset increasingly seen by policymakers as a hedge against inflation and currency depreciation.

Namibia’s foreign reserves fell by 5.2% in the first quarter of 2025 to N$59.7 billion, prompting renewed urgency for economic interventions that can enhance stability.

Namibia, which boasts a mature mining industry and remains one of Africa’s top gold producers, saw its gold earnings climb to N$4.3 billion in the fourth quarter of 2024—a 20.1% year-on-year increase and 13.4% rise from the previous quarter.

These gains present a compelling case for the asset’s potential as both a revenue source and a monetary tool.

“The decision is part of a broader strategy to diversify the economy and reduce reliance on foreign currencies, especially the US dollar,” the Bank of Namibia noted, framing the initiative as a step toward greater economic sovereignty.

Ghana’s original Gold Purchase Programme, launched in the early 2020s by the Bank of Ghana, allowed the central bank to buy gold directly from local producers and incorporate it into its reserves.

Designed to address inflation, currency volatility, and the risks tied to commodity cycles, it became a benchmark for African countries seeking alternatives to dollar-heavy reserve models.

However, Ghana recently suspended the programme, raising critical questions about the long-term viability of such strategies.

While the approach was praised for its initial promise, the halt suggests underlying concerns about fiscal sustainability and the limits of gold as a shield against external shocks.

Still, Namibia appears committed to moving forward with its own version, hoping to avoid overexposure to global currency risks while reinforcing domestic financial resilience.

The country continues to grapple with inflation, depreciation, and volatile commodity prices, challenges shared across