Namibia's central bank hiked its benchmark lending rate by 25 basis points to 7 percent on Wednesday as it aims to prevent possible capital outflows.

Namibia's central bank raised its benchmark repo rate by 25 basis points to 6.75 percent to align interest rates with those of South Africa, with the bank saying this "decision was necessary to avoid possible capital outflows, which could put pressure on the country's reserves."

NAMIBIA is among the few African countries with money account penetration greater than 10%, a study done by rating agency Moody's Investors Service said. Namibia's penetration is 48% while that of South Africa is 58%.

Moody's Investors Service ("Moody's") has today affirmed Namibia's Baa3 government bond and issuer ratings with a stable outlook.