Namibian government debt to local banks reaches N$52.4 billion, raising inflation concerns
via The Namibian1 min read
The Namibian government's borrowing from local banks increased by N$20.4 billion over the past year, reaching N$52.4 billion in April. Simonis Storm economist Almandro Jansen noted that this 63.6% surge in government borrowing is the primary driver of money supply growth in the economy. While this influx of funds boosts liquidity, it also heightens the risk of inflation. Jansen pointed out that such significant fiscal-driven monetary expansion has historically led to inflationary pressures in small, open economies with fixed exchange rates. Namibia's inflation rate recently accelerated to 3.1% from 2.1% in a single month, suggesting this risk may be materializing, although the April spike is primarily attributed to the transport component rather than fiscal-monetary transmission. Although government borrowing decreased by N$2 billion from its March peak of N$54.4 billion, Jansen explained that this reduction was largely due to the receipt of Southern African Customs Union Sacu revenue and the normalization of government spending at the start of the new financial year.
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This summary was AI-generated from a story originally published by The Namibian.
Formal identification of the four victims of a Desert Air crash earlier this month has been completed, allowing for their repatriation to Germany. National police spokesperson deputy commissioner Kauna Shikwambi confirmed that the bodies are being released to funeral undertakers. The victims were identified as German tourists Silke Lohmiller, Richard Lohmiller, their son Henry, and pilot Martin Funck. The recovery of the aircraft and victims was challenging due to the crash site's location near a mountain peak in a steep gorge with high elevation and treacherous terrain. Access by foot was difficult, and bodies had to be airlifted. DNA testing confirmed the identities, with German authorities providing profiles for the family and the pilot's son submitting a sample. The investigation into the crash's cause is ongoing, with international representatives from the German Aircraft Accident Investigation Bureau and the state of aircraft manufacture joining the team. The aircraft went missing en route from Windhoek to Sossusvlei, and Desert Air chief executive Willem de Wet had previously announced there were no survivors.
Must ReadNamibia is moving forward with green hydrogen projects, including the US$10 billion Hyphen Hydrogen Energy project, even though dedicated legislation for the sector is not yet in place. National Planning Commission director general Kaire Mbuende stated at the World Hydrogen Summit and Exhibition in Rotterdam that Namibia is shifting from planning to implementation, aiming to create 30,000 green jobs by 2030 and contribute to global decarbonization. Green hydrogen is a key component of Namibia’s sixth National Development Plan NDP6, intended to diversify the economy. Projects include the Hyphen project, targeting three million tonnes of green hydrogen annually, the Green Iron Production project, and the Green Transport project with CMB Tech. While some politicians, like Landless People’s Movement parliamentarian Eneas Emvula, have questioned the lack of specific legislation, Minister of industries, mines and energy Modestus Amutse asserts that existing laws, such as the Environmental Management Act and the Electricity Act, are sufficient. However, Mutindi Jacobs, acting deputy chief in the directorate of law reform and legislation, confirmed that consultations for a green hydrogen draft bill are ongoing, with submission to parliament expected by the end of the year after the green hydrogen policy was completed last year. Jacobs noted that the policy, developed by an interministerial committee, is anchored in the Green Hydrogen Strategy of 2022 and the Green Industrialisation B
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