IMF advises Namibia on fiscal adjustments despite recent debt repayments

This advice comes shortly after Namibia completed repaying a N$3.9 billion Rapid Financing Instrument from the pandemic ahead of schedule on April 15, and retired a US$750 million Eurobond six months prior. These actions have resulted in approximately 88% of Namibia's debt being domestic and international reserves exceeding the three-month import-cover threshold. Despite these efforts, Namibia's total government debt was about N$174.5 billion 65.2% of GDP in January 2026, projected to rise to N$193 billion in the 2026/27 fiscal year.

Interest payments consume 16–18% of government revenue. Finance minister Ericah Shafudah aims to reduce the debt-to-GDP ratio towards the Southern African Development Community SADC benchmark of 60%. The article highlights a perceived asymmetry in the IMF's approach, noting that countries like the United States 122–125% debt-to-GDP, Italy 138.9%, and France 117.6% have not faced similar urgent demands for wage cuts and structural reforms, despite higher debt ratios.

This disparity is attributed to the fact that these larger economies' debt is denominated in reserve currencies, unlike Namibia's, which is linked to the rand. The author suggests this reflects a structural problem in globa