The Governor of the Bank of Namibia, Johannes !Gawaxab, says inflation in the country is under control.

He told Members of Parliament that headline inflation went down in the first five months of 2025, attributed to lower costs in transport and housing.

!Gawaxab said low inflation is good news for the people, especially for those who have bank loans.

He explained that non-performing loans, loans that people are not paying back, dropped from 5.8% in 2023 to 5.4% now, which is below the 6% limit set by the bank.

!Gawaxab also said the Namibian economy is improving, but the recovery is not the same for all sectors.

Growth is mainly coming from primary industries like mining and agriculture, but some areas, such as diamonds, are facing challenges because of low prices.

On the issue of currency, !Gawaxab explained that the South African Rand circulates in Namibia, and Namibia gets paid for allowing that.

However, the Namibia Dollar does not circulate in South Africa, so Namibia has to pay South Africa.

All in all, the Chairperson of the committee, Iipumbu Shiimi, also highlighted the importance of the Central Bank, saying that it contributes to the well-being of Namibia.