Chamwe Kaira
Namibia recorded net outflows of international remittances in 2025, amounting to N$304.5 million, compared to a net inflow of N$150.7 million in the previous year.
The increase in net outflows was primarily driven by higher personal transfer payments and increased compensation of employees paid to nonresidents, particularly in the fishing and mining sectors, the Bank of Namibia (BoN) has announced.
The country’s capital account surplus declined during the year. It fell by 17.1% to N$2.4 billion due to lower capital transfers from non-residents, including foreign governments and private institutions, with a notable drop in inflows from the United States.
Namibia’s current account deficit narrowed in 2025, leading to lower borrowing from the rest of the world.
Net borrowing declined to N$32.9 billion from N$34.4 billion in 2024.
The financial account also showed lower net borrowing of N$30.5 billion, down from N$34.8 billion the previous year.
As a share of gross domestic product, the financial account balance stood at 11.3%, compared to 13.9% in 2024.
Net foreign direct investment also declined. It fell to N$25.1 billion in 2025 from N$35.9 billion in 2024.
“This pronounced decline was ascribed to decreasing expenditure in oil and gas exploration and appraisal as drilling activities eased. This decline was further supported by higher repayments of intercompany loans by enterprises in the mining sector during 2025,” the central bank said.
