The Bank of Namibia (BoN) and the South African Reserve Bank (Sarb) on Tuesday signed a revised agreement to strengthen cross-border cooperation and financial stability.

BoN governor Ebson Uanguta and Sarb governor Lesetja Kganyago signed the agreement in Pretoria during Uanguta's recent courtesy visit to the South African central bank.

The BoN in a statement says the revised agreement updates and replaces the previous agreement concluded on 11 September 2015 and reflects developments in the financial sectors of both countries.

"The agreement recognises the interlinkages between Namibia and South Africa's financial markets and economies and establishes a formal framework for cooperation in central banking, supervision, regulation and resolution planning of financial institutions and groups with cross-border operations," it reads.

Uanguta says the signing reflects the enduring and constructive relationship between the two central banks.

"In an increasingly complex global environment marked by digital transformation and emerging risks, regional cooperation is essential to strengthening resilience and safeguarding financial stability," he says.

The agreement is designed to enhance cross-border supervisory coordination, improve crisis preparedness and protect depositors in both jurisdictions and does not create binding legal obligations that would limit the statutory independence of either institution, the BoN says.