Namibia’s state-owned enterprises (SOEs) recorded a N$469 million increase in combined debt during the first half of 2026, bringing their total outstanding debt to N$11.12 billion by the end of June, with the bulk of the debt owed to foreign creditors.
According to the October 2026 Namibia Financial Stability Report, published by the Bank of Namibia (BoN) and the Namibia Financial Institutions Supervisory Authority (NAMFISA), SOE debt increased from N$10.65 billion at the end of December 2025, representing a 4.4% increase over six months.
Foreign SOE debt accounted for N$9.37 billion, or approximately 84.3% of the total, while domestic SOE debt stood at N$1.75 billion.
The report showed that foreign SOE debt increased from N$8.95 billion at the end of 2025, while domestic SOE debt rose from N$1.70 billion over the same period.
The increase comes as combined corporate and SOE debt reached N$219.33 billion by June 2026, up from N$198.85 billion at the end of 2025, representing a 10.3% increase.
The report attributed the increase in overall corporate and SOE borrowing largely to higher foreign corporate debt, particularly intercompany loans involving companies operating in the mining sector.
“Total corporate debt rose by 10.3 percent to N$219.3 billion at the end of June 2026, from N$198.9 billion at the end of 2025. The increase was largely underpinned by foreign corporate debt, which expanded by 13.1 percent to N$164.4 billion during the period under review,” the report stated.
Foreign corporate and SOE debt increased from N$145.41 billion at the end of 2025 to N$164.40 billion by June 2026, with private corporate borrowing accounting for N$155.03 billion and SOEs contributing N$9.37 billion.
The increase was primarily driven by higher direct investment intercompany borrowing, particularly among mining companies, alongside increased use of trade credit by businesses in other sectors and higher non-resident currency and deposits with domestic banks.
Meanwhile, combined domestic corporate and SOE debt increased by 2.8% to N$54.94 billion by the end of June 2026, mainly reflecting increased borrowing by businesses.
Instalment and leasing credit rose by 11.1%, while overdrafts and other loans and advances increased by 4.7% and 3.5%, respectively.
The report further showed that corporate debt as a share of nominal gross domestic product (GDP) increased from 69.8% at the end of 2025 to 74.5% by June 2026, largely reflecting higher external borrowing.
Foreign corporate debt as a share of GDP also increased from 50.6% to 55.5% over the same period, highlighting the growing reliance on external financing.
“However, the continued rise in foreign corporate debt warrants close monitoring, as greater reliance on external borrowing increases corporates’ exposure to exchange rate risk. A sustained depreciation of the Namibia Dollar could increase the domestic-currency cost of servicing foreign-denominated debt, weaken corporate balance sheets and repayment capacity, and potentially increase demand for foreign currency,” the report stated.
The regulators warned that these developments could place additional pressure on foreign exchange reserves and broader financial stability, particularly if a weaker Namibia Dollar increases the cost of servicing external obligations.
Despite the increase in foreign debt, total foreign private-sector debt repayments declined to N$21.5 billion during the first half of 2026, compared with N$23.7 billion during the corresponding period in 2025.
The report attributed the decline partly to substantial repurchase agreement repayments by resident deposit-taking corporations in the first half of 2025, as well as lower repayments on trade credit by businesses in other sectors.
