National debt to cross N$200-billion mark
Namibia’s overall budget deficit is projected to increase to N$217.3 billion by the end of the medium-term expenditure framework. The medium-term expenditure framework refers to the government’s budget for the next three years. According to the government’s fiscal book, government debt is projected to rise from N$173.1 billion in the 2025/26 financial year to N$193.8 […] The post National debt to cross N$200-billion mark appeared first on The Namibian.
Black News 
Namibia’s overall budget deficit is projected to increase to N$217.3 billion by the end of the medium-term expenditure framework.
The medium-term expenditure framework refers to the government’s budget for the next three years.
According to the government’s fiscal book, government debt is projected to rise from N$173.1 billion in the 2025/26 financial year to N$193.8 billion in the 2026/27 financial year.
“As a percentage of gross domestic product (GDP), the debt stock is expected to increase to 67.8% in the 2026/27 financial year from 66.1% in the 2025/26 financial year, before stabilising to 67.3% in the 2027/28 financial year and further to 65.9% in the 2028/29 financial year, signalling a turn towards long-term fiscal sustainability,” the fiscal report reads.
This means Namibia’s total debt will equal about 68% of everything the country produces in one year.
Minister of finance Ericah Shafudah last week said the country’s debt portfolio is 88% domestic and 12% foreign as at January.
She said this is a strategic move towards domestic financing.
“However, interest payments are projected to consume 16.4% of total revenue, amounting to N$14.3 billion, up from 14.7% in 2024/25,” the minister said.
This means for every N$100 the government collects, about N$16 goes to paying interest on debt.
Foreign currency debt largely comprises South African rand (9.4%), with limited exposure to China’s renminbi (0.9%), the United States dollar (0.5%), and euro (0.4 %).
“The currency configuration underscores a prudent external borrowing stance and reduced vulnerability to exchange-rate volatility,” Shafudah said.
By instrument type, the portfolio is anchored in domestic securities. Meanwhile, fixed-rate domestic bonds represent the largest component at 52.6% (N$91.8 billion), followed by treasury bills at 27% (N$47.2 billion) and inflation-linked bonds at 5.7% (N$10 billion).
Shafudah said the structure supports domestic capital market development and enhances predictability in debt servicing, although the relatively high share of treasury bills implies continued short-term rollover exposure.
“External debt instruments remain moderate in scale and diversified across concessional and semi-concessional facilities,” she said.
The post National debt to cross N$200-billion mark appeared first on The Namibian.
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