Chamwe Kaira
The government’s overdraft widened in October as the Bank of Namibia’s (BoN) balance sheet contracted sharply.
This follows the redemption of the US$750 million (approximately about N$13 billion) eurobond last month and the government’s decision to borrow more from domestic markets.
The central bank’s statement of assets and liabilities for 31 October 2025 shows the government’s overdraft moved deeper into negative territory, widening to -N$1.438 billion from -N$4.8 billion at the end of September.
This marks a significant month-to-month change in the government’s liability to the Bank of Namibia.
During the same period, BoN’s total assets dropped to N$57.6 billion from N$63.3 billion in September.
Lower external assets, which dropped from N$12.41 billion to N$12.30 billion due to a reduction in Rand cash balances, primarily drove the decline.
Investment holdings also dropped, moving from N$49.33 billion to N$43.31 billion. The fall was most notable in Rand currency investments and other currency holdings.
Domestic assets increased from N$1.59 billion to N$2.02 billion, supported by higher loans and advances to local banks and balances under repurchase agreements.
Reserves remained mostly unchanged at N$18.02 billion, with small movements in the revaluation reserve and investment revaluation reserve. Currency in circulation eased to N$5.56 billion from N$5.69 billion.
The central bank closed October with a tighter balance sheet, more domestic assets, and a higher government overdraft, marking one of the main shifts in its financial position.
Last month, BoN confirmed that Namibia had fully redeemed its second eurobond, valued at US$750 million, the largest single debt maturity in the country’s history.
The bond, issued in 2015 at a 5.25% coupon, was Namibia’s second appearance in international capital markets after its 2011 debut.
As part of its debt management strategy, the government built savings in its sinking fund to repay the eurobond.
Combined with additional local financing, Namibia settled the debt in full, reducing the foreign exchange exposure of its debt book.
“Moreover, the timely and full redemption of the Eurobond sends a strong signal of Namibia’s discipline in honouring its debt obligations, safeguarding its creditworthiness and maintaining a stable foundation for future investment and growth,” the central bank said.
Caption
The statement of assets and liabilities as of 31 October 2025 shows that the government’s position moved further into negative territory.
- Photo: Contributed
