CHAMWE KAIRA
GDP is expected to grow to 5.8% in 2026 from a growth of 4% in 2024, according to Bank of Namibia figures. This high growth is based on the back of oil, gas and green hydrogen investments.
This growth compares to 3.5% recorded in 2024 and 4.2% recorded in 2023, according to the central bank.
The central bank has projected inflation to reach 4% in 2025, down from 4.3% in 2024. The average annual inflation was 6.5% in 2022 and 5.8% in 2023.
The major oil finds off the country’s coast are estimated to hold around 11 billion barrels of oil.
Namibia is expected to produce around 250 000 barrels per day, with output projected to increase steadily.
The Bank of Namibia figures show that the oil and gas sector yielded N$33.4 billion in foreign direct investment (FDI) inflows between 2021 and 2023.
In terms of the repo rate, over the past year, Namibia’s repo rate has been 75 basis points lower than South Africa’s. Adjustments by the Bank of Namibia Monetary Policy Committee have reduced it by a total of 75 basis points since August 2024 to support the economy and maintain the currency peg with the South African Rand.
Public debt as a percentage of GDP is expected to reduce to 64% in 2025 and further go down to 60% in 2024.
Debt as a percentage was 65% in 2023 and 67% in 2024.
The central bank has revealed that foreign debt constitutes just 24% of Namibia’s public debt, including a US$ 750 million eurobond due for redemption in October 2025.
“To prepare for this, the country has already accumulated around US$400 million in a sinking fund designated for the bond’s repayment. By the redemption date, the sinking fund is projected to grow to around US$ 500 million, reducing the refinancing requirement to only US$ 250 million, the central bank cited.
The Ministry of Finance and Public Enterprises, in collaboration with the Bank of Namibia, established a sovereign wealth fund, known as the Welwitschia Fund, with an initial seed capital of around N$270 million.
“The rules for contributions into and withdrawals from the fund will be legislated in a bill that is currently in draft format. The Bank of Namibia is responsible for managing the Sovereign Wealth Fund,” the central bank said.
