By: Nghiinomenwa-vali Hangala
Bank of Namibia quarterly updates show that debt servicing for the central government increased by N$550 million year-on-year to N$5.0 billion during the first quarter of 2026.
The increase was reflected in domestic debt service, which rose by 22% on a yearly basis, in line with the rise in domestic debt.
However, as of the end of the first quarter, total government debt servicing decreased by N$12.1 billion compared to the previous quarter, attributed mainly to base effects as a result of the redemption of the Eurobond.
According to the Bank of Namibia Quarterly Report for the first quarter of 2026, the Namibian government spent N$14.6 billion in servicing external debts as of the end of the third quarter of 2026.
After the redemption of the Eurobond (around N$ 12.9 billion), foreign debt servicing has fallen to N$1.3 billion by the end of the 2025/26 Financial year.
In terms of domestic debt repayment and interest payment, the government has spent N$3.7 billion in the last quarter of the financial year of 2025/26.
As a result of the reduction in external debt (foreign loans), total debt service as a percentage of government revenue stood at 5.7%, reflecting a quarterly decrease of 18.8 percentage points, while it increased by 0.7 percentage points on a yearly basis.
At the end of March 2026, the government owed N$178.4 billion from both foreign and domestic investors, representing a yearly increase of 7% and a quarter-on-quarter increase of 3.3%.
The rise was driven by an increase in the issuance of both Treasury Bills (TBs) and Internal Registered Stock (IRS), coupled with the disbursement of loans from the KfW in November 2025.
As a percentage of GDP (at current prices), total central government debt rose to 65% at the end of March 2026, representing a yearly increase of 0.1 percentage point.
Going forward, the total debt stock is anticipated to rise to N$193.7 billion during 2026/27 and further to N$217.3 billion by FY2028/29.
As a percentage of GDP (current prices), total government debt is anticipated to average 67% over the next three years, above the SADC convergence benchmark of 60%.
