Chamwe Kaira
Revenue performance for the 2025/26 financial year has fallen below initial projections due to external and cyclical factors outside Namibia’s control, the Ministry of Finance has said.
Executive director Michael Humavindu said the shortfall has slightly widened the fiscal deficit and will require additional financing for the rest of the year.
He said the government remains committed to raising capital in a responsible and sustainable way to meet its obligations and support economic activity. The ministry will continue to adopt proactive, disciplined and transparent debt management practices.
“The government remains committed to protecting fiscal stability while ensuring that borrowing supports productive investment and national development priorities,” Humavindu said.
Namibia successfully redeemed its final outstanding Eurobond on 29 October. Humavindu described this as a major milestone in the country’s debt management strategy and evidence of its commitment to prudent fiscal policy and financial stability.
He said the eurobond, issued during earlier financing efforts, was repaid in full and on schedule, reinforcing Namibia’s reputation as a credible and disciplined borrower.
Minister of finance Ericah Shafudah said the redemption reaffirms Namibia’s standing in global markets.
“In an environment where several nations have struggled with debt repayment, Namibia’s full and timely settlement of its obligations demonstrates our enduring commitment to fiscal prudence, credibility, and stability,” she said.
The repayment was made possible through a coordinated financing plan that focused on sustainability and efficiency. Key measures included using SACU receipts to build up the sinking fund over several years, reducing the need for new borrowing.
The ministry also ran a competitive request for proposals to secure the most cost-effective funding. Local banks, with strong liquidity, were able to participate and helped the government raise financing in rand, which supported international reserves before conversion into US dollars for the redemption.
Namibia redeemed the eurobond at a time when many countries face severe debt repayment pressure. The strategy reduced foreign exchange exposure and strengthened the resilience of the debt portfolio.
Humavindu said Namibia has paid its debt while reducing currency risk.
“This strengthens our fiscal position and provides a solid foundation for sustainable and inclusive economic growth.”
He said the ministry remains committed to improving debt management and transparency in line with long-term development goals.
