By: Nghiinomenwa-vali Hangala
As of Friday last week, local investors have lent N$139.7 billion to the Namibian government to fill its budget shortfall for the past five financial years through bonds and treasury bills.
This is an increase from N$73.8 billion, which was borrowed from the domestic market at the end of 2020, according to a monthly summary prepared by the Bank of Namibia, which borrows on behalf of the Ministry of Finance.
The government’s domestic debt rose, both month-on-month and year-on-year, at the end of August 2025, the central bank revealed.
At the end of the reviewed period, domestic debt stood at N$139.7 billion, reflecting an increase of 2.3 percent from the previous month.
The increase was reflected in both Internal Registered Stock (IRS) and Treasury Bills (TBs), which rose by 2.8 percent and 1.4 percent to N$95.2 billion and N$44.0 billion, respectively.
Government borrowing through treasury bills increased from N$27.3 billion in 2020 to N$44 billion, almost doubling.
As for borrowing through bonds, for the past five years, the government has borrowed N$45 billion more through internal registered bonds – doubling what it borrowed in 2025.
On an annual basis, domestic debt increased by 15.0 percent owing to an increase in the issuance of both IRS and TBs, which rose by 17.6 percent and 9.9 percent, respectively.
As a percentage of GDP, domestic debt rose both on a monthly and yearly basis at the end of August 2025. Domestic debt as a percentage of GDP increased by 1.1 percentage points month-on-month, to 50.1 percent during the period under review.
Similarly, on an annual basis, the ratio of domestic debt to GDP rose by 1.7 percentage points, reflecting an increase in the ratio of IRS to GDP.
According to the FY2025/26 Borrowing Plan, the government has a financing requirement of 29.8 billion.
The government planned to source N$23.2 billion from the domestic market, leaving N$6.6 billion to be financed through external sources.
According to the central bank, however, considering the liquidity levels in the domestic market and the interest shown by domestic investors for tapping into the local bond mix for FY2025/26, it has increased local sourcing. erastus@thevillager.com.na
