In a time when news about public finances often comes wrapped in alarm bells and warnings, Namibia has given us a story worth celebrating. The country is on track to fully redeem its US$750 million Eurobond when it matures in October 2025. This is not just a technical achievement in debt management; it’s proof that disciplined planning and consistent follow-through can pay off, and it’s the kind of success that can have real meaning for ordinary Namibians.
Nicholas Mukasa, Director of Financial Markets at the Bank of Namibia, confirmed recently that “we are on target to redeem that bond when it matures in October.” Finance Minister Ericah Shafudah had already signaled this as one of the defining moments of the 2025/26 financial year during her budget speech in March. By then, government had already saved US$463 million in a sinking fund over previous years and planned to add another US$162 million before the maturity date. The last US$125 million will be refinanced through the domestic market.
Now, those numbers might sound like they belong in some dusty ledger in the Ministry of Finance, far removed from daily life. But they matter. A lot. In a world where countries default on their debt and pay the price for years, meeting this obligation on time is a statement. It’s Namibia telling the world: “We keep our word.” And in the language of the global financial markets, that counts for everything.
We’ve seen what happens when the opposite is true. Zambia’s default in 2020 on US$17 billion of external debt led to years of painful negotiations, a damaged reputation, and much higher borrowing costs. Ghana faced similar turbulence in 2022 when it restructured its debt, and the aftershocks are still being felt. Once you lose investor trust, winning it back is costly and slow. By contrast, Botswana has spent decades carefully managing its debt, meeting its obligations without drama, and today enjoys strong credit ratings and access to affordable financing. Morocco, too, paid off a Eurobond in 2010 without incident and saw investor confidence grow, allowing it to fund ambitious infrastructure projects at better rates.
Namibia’s success here didn’t happen by chance. The creation of a sinking fund, a kind of savings account set aside specifically for debt repayment, was a deliberate choice. It meant saying no to certain expenditures in the short term in order to safeguard the future. That sort of discipline isn’t glamorous, but it’s the foundation of economic stability.
Paying off a bond on time isn’t just about looking good on paper. It has ripple effects that touch the lives of everyone. First, it strengthens our creditworthiness. Credit rating agencies take note when countries meet big obligations without drama, and that can lead to better ratings or at least prevent damaging downgrades. The better the rating, the less we have to pay in interest when we borrow in the future, whether for big government projects or indirectly through the banking system for business loans and mortgages.
It also reassures investors. Foreign companies looking to set up in Namibia aren’t just interested in our mineral wealth or tourism potential; they want to know they can rely on stable governance and a sound economy. This kind of news signals exactly that. And when investor confidence rises, more projects get off the ground, more factories open their doors, and more jobs are created.
Then there’s the cost of money itself. When the government borrows at lower rates, it eases pressure on interest rates across the economy. That means banks can offer cheaper loans to businesses and households, which encourages entrepreneurship, home ownership, and other activities that stimulate growth.
So, for the ordinary person walking down Independence Avenue, the benefits of this Eurobond redemption are real. They might show up in the form of more job opportunities, lower borrowing costs, a stronger currency that keeps imported goods like fuel and food from becoming too expensive, and more government spending on things that directly improve daily life, like schools, clinics, and roads, rather than on interest payments to foreign creditors.
But this isn’t a one-off victory lap. Fiscal discipline is a habit, not a single act. Namibia’s ability to set aside hundreds of millions over the years is a sign of forward thinking, but it has to continue. Our structural challenges, high unemployment, a small tax base, vulnerability to commodity price swings, aren’t going away overnight. The period after the redemption is when we should be thinking about the next buffer, the next saving mechanism. Countries like Chile and Norway, with their sovereign wealth funds, show how resource-dependent economies can protect themselves from boom-and-bust cycles. Namibia’s sinking fund could evolve into something like that, becoming a permanent fixture in our fiscal toolkit.
October 2025 will be more than just a date on a repayment schedule, it will be a milestone in Namibia’s journey toward becoming a more credible, trusted player in the global financial system. It’s a moment to use that credibility to secure better financing for infrastructure, green energy, and economic diversification. It’s also a reminder to ourselves that good governance pays off in the most practical ways.
We should absolutely congratulate the Ministry of Finance and the Bank of Namibia for steering us to this point. But we should also take the bigger lesson to heart: when a country makes careful, disciplined, and transparent financial decisions, it’s not just accountants and credit analysts who benefit. It’s every Namibian who wants a stronger, more stable, and more hopeful future.
