The Budget Stands Still — But the Focus Has Shifted
When the Minister of Finance, Hon. Ericah Shafudah, stood before Parliament on 21 October 2025, the message was simple: Namibia’s total budget of N$89.4 billion is staying the same. But where the money goes — that’s changing.
The government has shifted its attention to the things that touch people’s lives most directly: education and health. That’s good news for students, teachers, doctors, and nurses.
Education Takes the Front Seat
Out of the N$1.2 billion reshuffled in this mid-year review, a massive N$814 million goes to the Ministry of Education. Of that:
– N$663 million is for university tuition and registration — meaning that free tertiary education is no longer just a dream, it’s happening.
– Another N$151 million will help hire 665 teachers across the country.
For many Namibian families, this is more than a budget number — it’s an opportunity for their children to learn, grow, and build better futures.
Health Gets a Boost Too
The Ministry of Health receives N$185 million to recruit 1,537 health workers. In a country where hospitals and clinics are often stretched thin, that’s a welcome move. It means more nurses, more doctors, and better service for ordinary citizens.
This is how budgets translate into dignity — by putting more hands on deck to serve communities.
The Tightrope of Debt
But not everything is rosy. Namibia’s debt servicing bill — the amount we spend paying back what we owe — has climbed to N$14.3 billion, now eating up 16.1% of government revenue.
That’s more than what the country is spending on building new infrastructure. It’s a clear reminder that debt is not free money — what we borrow today, our children must repay tomorrow.
Still, there’s discipline in how the government is managing this pressure. Instead of increasing the total budget or deficit, it’s reallocating funds within what it already has. That’s a smart, cautious move in a tough global economy.
Smarter Ways to Finance Growth
There’s also an interesting shift in strategy. Instead of relying purely on government bonds (which increase public debt), the state now plans to use guarantees to help well-run state-owned enterprises (SOEs) raise their own development capital.
In plain terms: the government will back strong public companies to borrow responsibly — freeing up space in the national budget for social priorities like education and health.
A Balanced, People-Focused Budget
This mid-year review doesn’t bring new money — but it does bring new direction.
It’s a message of discipline with compassion: cutting where spending underperforms, and reinvesting where it truly matters.
Namibia’s future won’t be built on bigger budgets alone — but on better choices about where our money goes. And this time, those choices are clearly about people: the student, the teacher, the nurse, the patient.
When a nation spends wisely on its people, it invests in its most powerful form of growth — human potential.
* By Dr. John Steytler is the founder & Managing Director, R&J Steytler Management Consultants
