Debt to hit N$177bn this year

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 2025/26 financial year.

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.