By Staff Reporter
Bank of Namibia is to investigate black market activities at Wenela border Post.
According to Bank of Namibia Director of Strategic Communications and Financial Sector Development, Mr. Ndangi Katoma told Caprivi Vision that in terms of Regulation 2 of the Exchange Control Regulations, of 1961, no person (legal or natural) other than the Authorised Dealers are permitted to deal in foreign currency.
“Given this, the allegations of the black market activities at the Wenela Border Post shall be investigated and appropriate corrective measures will be instituted, if they are found to be true.” quashed Mr. Katoma.
Caprivi Vision understand that the Namibian dollars ( NAD) has dropped its value since last year January 1, 2013 when Bank of Zambia through its Statutory Instrument when it introduced its rebased new currency ZMW when exchanged at the black market at WENELA border post without a normal bank rate.
This state of affairs has prompted some of the Zambian nationals with opportunity in flooding the market in Namibia and the small economies are complaining that it is a daylight robbery.
A Zambian national who opted to remain anonymous told Caprivi Vision that “We used to exchange Namibian dollar at N$ 10.00 equals to K 5.00” he said.
Mr. Charles Subulwa, a Namibian business man said “I don’t know bank rate. But we always take a Kwacha at K600 with N$ 10.00; we know that a dollar still on top a bit, sometimes it’s up and down”
He added that as a small medium entrepreneur he still find it difficult when doing business with neighbouring countries as he is tasked to pay custom duty on small things “ we still have to pay transport and many more and buying what we sale here … business is there but for consuming”
Mr. Subulwa further called “we want government to give us small loans for us to create other businesses instead of selling small things so that we can export to bigger markets in RSA and Angola”
Bank of Namibia Spokesperson Mr.Katoma responded to this paper when quizzed for feedback that “the currency that was rebased was the Zambian currency (ZMW) and not the Namibia Dollar. Therefore, there are no changes in prices on the Namibian side of the border even though the Zambian currency has been rebased.”
He advised that “in a nutshell, the local community should not be concerned about the fact that the Zambian Currency has been rebased as this will not lead to a drop in the value of the Namibian currency.”
He further concluded, “if anything, it will be actually good for the local economy especially for the exporters. If the Zambian nationals who are said to be flooding the market are using Namibia Dollar (and not ZMW as indicated earlier because the ZMW is not a tradable currency in Namibia),this will be boosting the value of trade between the two nations which is good for our economy.”