The Bank of Namibia says Namibia’s total central government debt stood at N$171.5 billion at the end of June 2025, an 8.8% increase year-on-year.
According to the bank’s Quarterly Bulletin – September 2025, domestic debt rose to N$135.1 billion during the first quarter of FY2025/26, driven by increased government borrowing.
The rise was supported by Treasury Bills and Internal Registered Stock, with domestic debt as a share of GDP increasing to 48.6% year-on-year.
“The government’s total domestic debt rose by 13.5% and 4.6%, year-on-year and quarter-on-quarter, respectively, to N$135.1 billion during the first quarter of FY2025/26,” the Bank said.
External debt declined to N$36.4 billion at the end of June 2025 due to repayments and exchange rate effects. External liabilities now account for 13.1% of GDP.
“The decrease was partly attributed to the partial repayment of previously incurred debt and exchange rate revaluation effects during the period under review,” the Bank noted.
Net central government debt rose to N$158.5 billion, influenced by higher government deposits. Debt service costs also increased, with domestic payments making up the bulk of short-term obligations.
“Total debt as a percentage of GDP stood at 61.7% at the end of June 2025, representing a yearly and quarterly decline of 1.0 percentage point and 4.6 percentage points owing to a faster rise in fiscal GDP compared to the rise in debt,” the Bank reported.
The Bank said total debt is expected to ease temporarily in October 2025 following repayment of a US$750 million Eurobond but will rise again to N$172.4 billion, or 62.0% of GDP, by the end of FY2025/26.
“Ultimately it is expected to rise to N$206.7 billion or 61.4% of GDP by the end of FY2027/28, slightly above the SADC benchmark of 60% of GDP,” the Bank said.
Debt service rose sharply in the first quarter of FY2025/26, reaching N$6.0 billion. “Central Government debt service rose by 78.4% year-on-year, to N$6.0 billion during the quarter under review,” the Bank noted. Debt service as a share of government revenue increased to 6.5%.
