By: Nghiinomenwa-vali Hangala
The government will kick off the new financial year by turning to the market to borrow N$3.2 billion for the first month, according to the Borrowing Plan Summary for April 2026.
The summary, provided by the Bank of Namibia on behalf of the Ministry of Finance, was availed as guidance for investors last week.
The central bank indicated that “as we prepare for the FY2026/27, we remain committed to communicating a clear plan that provides straightforward guidance on our financing strategy for the year.”
The Ministry of Finance and the Bank of Namibia are in the process of concluding both internal and external consultations that have an important bearing on the borrowing plan for the FY2026/27.
As for the April borrowing summary, the central bank will utilise the usual tools: Treasury Bills (TBs), Fixed-Rate Bonds, and Inflation-Linked Bonds.
Most of the money in April will be borrowed through Fixed-Rate Bonds, with the plans showing an allocation of N$2.3 billion to be raised through 9 bonds, starting from the GC30 to GC50.
In terms of Treasury Bills, the government will borrow N$504 million. The remaining will be raised through inflation-linked bonds.
The first auction was held last Wednesday for treasury bills, while the first Bonds Auction for the financial year will be held today.
For the last financial year, which ended in March 2026, domestic debt stood at N$152.9 billion, increasing by 1.3 percent month-on-month, according to the central bank updates.
The increase was reflected in both Internal Registered Stock (IRS) and TBs, which increased by 1.5 percent and 1.1 percent to N$104.7 billion and N$48.2 billion, respectively.
Year-on-year, domestic debt rose by 18.4 percent, given increased issuance of both IRS and TBs, which rose by 19.7 percent and 15.7 percent respectively.
Domestic debt as a percentage of GDP increased by 0.7 percentage points month-on-month, to 55.6 percent as of 31 March 2026.
erastus@thevillager.com.na
