Windhoek: Namibia's public debt is on a trajectory to reach 70% of its gross domestic product (GDP) by the end of the current fiscal year, unless the government adopts significant expenditure reforms. This stark warning was issued by Ebson Uanguta, the Governor of the Bank of Namibia (BoN), during the 2026/27 Budget Reform Roll-Out Workshop in the nation's capital, Windhoek.

According to Namibia Press Agency, Uanguta highlighted that the country's debt had already surpassed the critical 60% of GDP threshold, standing at 65.2%. He emphasized the urgency of curbing the debt growth to prevent it from escalating to 70% by year-end. Uanguta noted a marked decline in investor interest for government securities, with oversubscription rates dropping from previously high levels. He refrained from disclosing the current oversubscription ratio but stressed that this trend signals a waning willingness of the private sector to finance government debt.

Namibia's economic growth was recorded at a modest 1.7% in 2025, significantly below its potential growth rate of around 3%, which is necessary to tackle the country's high unemployment and inequality. Uanguta attributed this underperformance to factors including weak diamond demand, drought-induced disruptions in livestock marketing in 2024, and the broader economic impacts of the Middle East conflict, which have led to increased shipping costs and oil prices. The conflict, particularly affecting trade routes through the Strait of Hormuz, has inflated transport costs and fuel prices, impacting Namibia's budget by billions more than initially projected in February 2026.

Looking forward, the BoN Governor identified uranium mining and oil and gas exploration as potential pillars for economic growth. He noted that three uranium mines along Namibia's coast could commence production within three years but cautioned against borrowing based on anticipated oil revenues. Uanguta stressed the necessity of budget reform, warning that failure to implement changes could lead to a complete lack of demand for government securities.