Namibia is reportedly exploring the adoption of a gold-backed currency stabilisation programme, inspired by Ghana’s “Gold for Oil” initiative introduced by Dr. Mahamudu Bawumia during his tenure as Vice President.
The programme, which allowed Ghana to use domestically purchased gold to pay for oil imports, significantly reduced the country’s reliance on foreign exchange reserves and helped stabilise the Ghanaian cedi.
Dr. Bawumia, the flagbearer of the New Patriotic Party (NPP) in the 2024 elections, had proposed anchoring the cedi to gold, to ensure long-term exchange rate stability.
This approach not only addressed the depreciation of the cedi but also curbed fuel price volatility.
The success of this policy has garnered attention from other African nations facing similar economic challenges.
Namibia’s interest in this model reflects a growing trend among resource-rich African countries to leverage their natural assets for economic stability.
By considering a gold-backed currency approach, Namibia aims to strengthen its local currency and reduce dependency on volatile foreign exchange markets.
This move aligns with broader efforts across the continent to enhance financial sovereignty and resilience.
While Namibia has not officially announced the implementation of such a programme, the consideration itself underscores the influence of Ghana’s policy on regional economic strategies.
The post Namibia In Love With Bawumia’s Gold Anchor appeared first on DailyGuide Network.
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