By: Nghiinomenwa-vali Hangala
The central government, through its treasurer, the Ministry of Finance, has indicated that the private sector has been knocking on its doors with unsolicited bags of capital to invest in infrastructure.
In a press release yesterday, the government, through the Ministry of Finance, acknowledged private capital availability in funding national infrastructure development.
The Ministry’s executive director, Oscar Capelao, updated that private funding proposals from various investors have reached the Ministry.
Adding that several investors have identified developmental projects they aim to channel their investments towards.
For FY2026/27, the total financing requirement is estimated at N$29.22 billion, comprising a budget deficit of N$15.78 billion and additional financing requirements arising from debt obligations of N$13.44 billion.
These include bond redemptions, foreign loan principal repayments, and cash requirements to improve the Government’s cash position with the Bank of Namibia.
As of 31 March 2026, the estimated public debt stock stood at N$178.69 billion.
This comprised domestic debt of N$152.93 billion, commercial bank loans of N$6.00 billion, and external debt of N$19.76 billion.
According to Capelao, most of the received proposals seek to identify private sector contractors to implement the projects on behalf of the government.
Said proposals also made mention of public infrastructure funding various projects with the government as an undertaker/main borrower.
Capelao acknowledged the interest from the private sector which provided a platform for the government to utilise private capital for a national agenda. He added that the national infrastructure is guided by the country’s planning agency.
“All government infrastructure development and infrastructure funding are undertaken strictly in adherence to the established procedures as set out in the National Planning Commission Act and the State Finance Act, as amended, respectively.”
The National Planning Commission Secretariat is tasked with appraising, monitoring and evaluating capital and development projects and programs as submitted by the Offices, Ministries and Agencies (OMAs).
The Secretariat then makes recommendations to the treasurer/Ministry of Finance for funding.
Moreover, the Ministry of Finance is authorised to undertake public borrowing, both domestically and externally, to finance the anticipated deficit in the State Revenue Fund by obtaining foreign revenue and obtaining funds for capital projects.
This, however, can only be undertaken by issuing bonds and treasury bills.
Moreover, the Ministry has highlighted that the Public Procurement Act enables it to conduct a competitive bidding process.
This may include engagement with foreign governments or through public auctions in the domestic or international markets.
The Ministry has also reiterated that it does not borrow money for funding projects from unsolicited bids through individuals, private companies or agents acting on behalf of private companies or individuals.
It added that private companies can only fund government work through the budget deficit, which is funded by domestic borrowing (bonds and treasury) or through international bond issuances, which the government undertakes occasionally.
The government has issued its current financial borrowing plans, along with the 6-month borrowing strategy.
