Public debt to hit N$217 billion by 2028

Total government debt is projected to increase from N$174.6 billion, or 65.2% of GDP, in financial year 2025/2026 to N$217.3 billion by 2028/2029, finance minister Erica Shafudah revealed yesterday.

Debt as a percentage of GDP is expected to stabilise at around 67.5% throughout the MTEF period. Domestic debt constitutes the majority of the stock, while foreign debt remains moderate but plays a role in diversifying funding sources.

The government’s total financing requirement is projected to peak at N$19.2 billion in 2026/2027, up from N$14.5 billion in 2025/2026, before moderating to N$12.9 billion in 2027/2028 and N$10.6 billion in 2028/2029.

Interest payments are projected to rise from N$14.3 billion in 2025/2026 to N$16.2 billion in 2026/2027, increasing further to N$17.1 billion in 2027/2028 and N$17.8 billion in 2028/2029.

As a percentage of GDP, interest payments will average about 4.5%. As a share of total revenue, they are expected to increase to 18.1% in 2026/2027 before stabilising at around 17.8% in the outer years of the MTEF.

Namibia’s total debt stock is expected to rise to N$177 billion in the current fiscal year, climbing to 60% of gross domestic product (GDP). According to an assessment by Simonis Storm, this figure is roughly N$4 billion higher than initially projected for the 2025/2026 financial year.

‘Significant shift’

Simonis Storm said there have been significant shifts within the country's debt

structure. Foreign debt declined to approximately N$25.6 billion following the

Eurobond redemption and International Monetary Fund (IMF) repayments, now

accounting for 14.4% of the total debt stock.

The firm said that Namibia’s settlement of its Eurobond obligation means the

country now faces less exposure to exchange rate vulnerabilities. However,

Simonis Storm said this reduces currency risk but increases reliance on the

domestic capital market.

Domestic funding requirements have widened to roughly N$26.3 billion, up from the

previously projected N$21.2 billion. Revenue growth is expected to hinge on

strong Southern African Customs Union (Sacu) inflows and a recovery in diamond

production.

“Without a meaningful recovery in domestic demand, stronger Sacu inflows, or a rebound

in diamond production, revenue growth is likely to remain modest. If nominal

GDP growth averages around 4–5% and deficits remain near 5–6% of GDP, the debt

ratio could stabilise slightly above 60% but risks drifting toward 65–70% over

the medium term,” Simonis Storm said.