Namibia has accumulated US$463 million in its Sinking Fund, edging closer to its US$500 million target in preparation for the repayment of its US$750 million Eurobond maturing on October 29, 2025, Finance Minister Ericah Shafudah has confirmed.
“We have succeeded to accumulate US$463 million in the Sinking Fund over the past financial years,” Shafudah said during the tabling of the FY2025/26 national budget on Thursday.
She further announced that the government plans to inject an additional N$3 billion (US$162 million) into the fund during the current fiscal year.
“Going forward, we aim to further add another N$3.0 billion (US$162 million) to the Sinking Fund during the course of FY2025/26 before the maturity of the bond,” she she said
Shafudah also disclosed that the remaining balance of N$2.3 billion (US$125 million) will be raised through domestic borrowing.
“Effectively, this will leave a balance of N$2.3 billion (US$125 million) which will be refinanced through the domestic market,” she said.
In February, the Bank of Namibia (BoN) reported that Namibia was close to reaching its N$9.5 billion (US$500 million) Sinking Fund target, with only N$1.5 billion (US$80 million) still required.
Analysts note that settling a significant portion of the Eurobond will reduce Namibia’s debt-to-GDP ratio to approximately 56%, below the international benchmark of 60%.
The move is also expected to lower interest payments and mitigate the impact of exchange rate fluctuations on the country’s total debt and debt-servicing costs.
