Namibia’s government debt rises to N$181.9 billion

By: Elizabeth Naftal

Namibia’s debt rose to N$181.9 billion at the end of June 2026, an increase of 6.1% compared to the same period last year, pushing the country’s debt-to-GDP ratio to 65.1%, according to the Bank of Namibia (BON)`s September 2026 Quarterly Bulletin.

The increase was mainly driven by higher holdings of Treasury Bills and Internal Registered Stock, while external debt declined as a result of loan repayments and exchange-rate movements. Compared with the first quarter of the year, government debt increased by 2.0%.

According to BON, the latest debt-to-GDP ratio is above the 60% SADC benchmark, with the Bank of Namibia projecting government debt to reach N$217.3 billion by the 2028/29 financial year and average about 67% of GDP over the Medium-Term Expenditure Framework period.

The bulletin noted that despite the increase in overall government debt, loan guarantees declined to 2.5% of GDP, remaining well below the government’s 10% ceiling. The budget deficit is also projected to narrow to 5.5% of GDP in the 2026/27 financial year, from 6.6%.

Namibia also completed the repayment of its N$3.9 billion International Monetary Fund COVID-19 loan on 15 April 2026, according to the central bank.

The debt figures come as the domestic economy recorded stronger growth during the second quarter, with real GDP expanding by 4.8% year-on-year, compared with 3.1% in the first quarter and 1.7% during the same period last year.

BON said the growth was mainly supported by tertiary industries, particularly health, wholesale and retail trade, information and communication, and financial services, while agriculture and fishing also recorded stronger activity during the quarter.

However, growth remained uneven across the economy, with mining output remaining negative and construction contracting sharply, while manufacturing benefited from a recovery in diamond cutting and polishing.