…sovereign exposure totals N$1.58bn
Namibia’s sovereign debt exposure to Chinese lenders stood at approximately N$1.58 billion at the end of January 2026, accounting for just 8.1% of the country’s N$19.6 billion stock of foreign-denominated debt, according to the Institute for Public Policy Research (IPPR).
IPPR Research Associate Robin Sherbourne said Namibia’s debt to China comprises three interest-free loans from the People’s Republic of China and three concessional loans from the Export-Import Bank of China carrying an interest rate of 2%.
“The terms of these loans do not appear onerous and the total value of approximately N$1.6 billion is just 8.1% of the total stock of foreign-denominated debt of N$19.6 billion. These loans exclude the loan taken to purchase a 10% stake in the Husab uranium mine. Unlike several African countries, Namibia’s sovereign exposure to Chinese lenders remains relatively modest,” Sherbourne said.
The interest-free loans, signed between 1991 and 1996, have outstanding balances of N$211.46 million, N$110.65 million and N$46.73 million.
The concessional loan portfolio includes a China and Export (C&E) loan signed in 2008 with an outstanding balance of N$115.79 million, as well as two Northern Road project loans signed in 2013 with outstanding balances of N$695.54 million and N$397.36 million.
Sherbourne said the loans have repayment periods ranging from 15 to 40 years, with final maturities extending to 2036.
He said China’s economic relationship with Namibia extends well beyond sovereign lending, with the Asian nation ranking among Namibia’s largest trading partners and foreign investors.
“China is one of Namibia’s top trading partners, buying mainly uranium and metal ores from Namibia while exporting manufactured consumer and industrial goods. Bank of Namibia statistics show that China is the largest investor into Namibia in terms of foreign direct investment, predominantly in the mining sector,” he said.
Sherbourne said Chinese companies also play a significant role in infrastructure development, electricity generation projects and the supply of equipment to Namibia’s renewable energy and information and communication technology sectors.
While Chinese manufacturing activity in Namibia remains limited, he noted that Chinese firms are major operators in the country’s dimension stone industry.
He also said China remains an important market for diamond jewellery, supporting demand for Namibian diamonds, although the country’s production of laboratory-grown diamonds presents an increasing challenge to Namibia’s natural diamond industry.
Sherbourne further pointed to the mothballing of the Tsumeb copper smelter following its acquisition by a Chinese company and the rapid growth in Chinese tourist arrivals, albeit from a relatively small base.
“Chinese companies play an important role in major infrastructure projects. The number of Chinese tourists coming to Namibia is growing fast, albeit from a small base. Clearly, the economic relationship between the world’s second-largest economy and Namibia is extensive and involves much more than just trade,” Sherbourne said.
