By: Nghiinomenwa-vali Hangala
The government has cumulatively borrowed a total of N$149.0 billion from domestic lenders/investors as at the end of January 2026, the Bank of Namibia’s domestic debt updates show.
This represents an increase of more than N$8 billion from June 2025, with the Q2 central bank report showing domestic debt stood at N$141.2 billion.
Domestic debt as a percentage of GDP now stands at 53.4 percent as of the end of January 2026. The increase in government borrowing highlights various aspects of the country’s fiscal position, revenue collection, return on government debts, market appetite, and availability of capital in the local economy.
The government borrows internally using two tools, namely Internal Registered Stock (IRS)/bonds and Treasury Bills (TBs). This is done through auctions, where the government indicates how much they intend to borrow and invite investors (institutional and individual) to present their most competitive bids.
By the end of January 2026, the government has borrowed N$101.8 billion from the markets through its various bonds, with agreements in place to reimburse after a number of years and, in the meantime, pay interest every 6 months.
In terms of Treasury Bills, the government has managed to borrow N$47.2 billion from the domestic market.
Year-on-year domestic debt rose by 17.2 percent, given increased issuance of both IRS and TBs, which rose by 19.2 percent and 13.4 percent, respectively.
The central government continues to experience a budget shortfall, high expenditure, and lower revenue, resorting to borrowing to fill the gap. Most of this borrowing is done locally to avoid foreign exchange and provide local investors with asset options to invest in.
As the country’s borrowing increases, so do debt servicing costs, resulting in a portion of the collected revenue being reserved for loan repayment and interest.
From the 2024/25 financial year to the end of March 2026, interest payments on loans will amount to N$27.5 billion, while government expenditure for the upcoming financial year is projected at N$13,8 billion in interest payments to investors.
erastus@thevillager.com.na
