Chamwe Kaira
Finance minister Ericah Shafudah said the government is addressing the slow execution of capital projects through stronger coordination between the Ministry of Finance and the National Planning Commission (NPC).
She told parliament that both institutions are working to improve project delivery rates through upcoming public expenditure reviews.
Shafudah made the remarks in parliament this week while responding to lawmakers’ concerns about the 2025/26 mid-year budget review.
She assured lawmakers that the government remains committed to fiscal prudence, social protection and sustainable economic growth.
She thanked members of parliament for their input during the debate, calling it a reflection of shared national purpose.
“Your valuable advice contributes meaningfully to the improvement and efficiency of our budgeting process,” she said.
“The challenges confronting our nation remain significant and call for a unified voice and collaboration among all stakeholders.”
Addressing debt concerns, Shafudah said debt servicing costs are projected to reach N$14.4 billion in the 2025/26 financial year, about 15% of total revenue. She said the country’s debt structure remains stable and strategically managed.
“With the redemption of the eurobond on 29 October 2025, the ratio of foreign to domestic debt now stands at 85:15. Furthermore, about 90% of the foreign debt is ZAR-denominated, making our total debt portfolio 99% exchange rate-free,” she said.
To contain debt growth, Shafudah said the government will continue implementing debt sustainability strategies focused on gradual deficit reduction, targeted spending, and growth-friendly reforms.
She stressed that the government does not borrow for consumption and said domestic revenues are enough to cover operational expenditures.
“Our progress in revenue mobilisation has been significant, especially when compared to peers who continue to face challenges in generating adequate domestic resources,” she said.
Shafudah reiterated the government’s commitment to revitalising agriculture as a driver of food security and employment.
“Namibia has the means to feed itself. The green scheme projects will be operated at full capacity through public-private partnerships to boost production and create jobs,” she said.
She added that funding has been secured through NamWater and the Ministry of Agriculture, Water, Fisheries and Land Reform to roll out new water infrastructure projects in drought-affected regions.
During the mid-year review, the government also allocated an additional N$663 million to the Namibia Student Financial Assistance Fund (NSFAF) to strengthen subsidised tertiary education.
On the National Youth Development Fund (NYDF), Shafudah said 11 475 applications were received during the pilot phase, with 42 projects worth N$14.78 million already approved across all 14 regions.
Three development finance institutions are finalising the disbursements to approved beneficiaries, while they are still evaluating the remaining applications.
She stated that regional governors will receive feedback by November.
To promote inclusivity, the government has revised the NYDF’s age eligibility from 18 to 45 years, recognising that “entrepreneurship evolves from early adulthood into mid-career.”
Shafudah also gave an update on Namibia’s Sovereign Wealth Fund, launched in 2022 with N$267 million in seed capital.
“As of 30 September 2025, the fund has achieved an annualised return of 16.05% since inception,” she said, adding that the Sovereign Wealth Fund bill is now with legal drafters for finalisation.
