Namibia's public debt could reach 70% of GDP without spending reforms, central bank warns
via The Namibian3 min read
The Bank of Namibia BoN governor, Ebson Uanguta, has warned that Namibia’s public debt could escalate to 70% of gross domestic product GDP by the end of the current financial year if the government fails to implement spending reforms. The country's debt currently stands at 65.2% of GDP, already exceeding the 60% benchmark. Uanguta emphasized that the government can no longer rely on borrowing to fund expenditure and cautioned against borrowing based on future oil revenues. This warning follows Fitch Ratings' projection that Namibia’s government debt would rise to 66% of GDP by the 2026 financial year, with interest payments consuming 18% of government revenue. Prime minister Elijah Ngurare called for stricter spending controls across the government, aiming to reduce the fiscal deficit from 5.5% of GDP this financial year to 3.3% by 2028/29. He stated that the government needs to save approximately N$2.3 billion annually through tighter spending controls and expenditure restraint. Ngurare also announced the introduction of outcome-based budgeting in eight ministries from the second quarter of this year to measure government performance based on results rather than spending levels. He further stressed the importance of investing in job-creating projects, improving service delivery, and encouraging private sector investment, while also calling for reforms in procurement systems, public enterprises, public service operations, and digital government services. Ngurare warned minist
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This summary was AI-generated from a story originally published by The Namibian.
Must ReadNamibia's National Assembly has adopted the mental health amendment bill of 2025, which now moves to the National Council for consideration. This legislation aims to modernize mental healthcare services, protect patients, and address the country's mental health challenges. Key provisions include criminalizing patient abuse, expanding community-based care, regulating patient restraint and seclusion, and emphasizing suicide prevention. The bill, tabled by minister of health and social services Esperance Luvindao, will replace the Mental Health Act of 1973. Luvindao stated that the new law provides a foundation for her ministry to accelerate implementation, including building facilities and managing mental health at the primary healthcare level. The legislation also allows the Ministry of Health and Social Services to designate private institutions as mental health facilities, broadens service delivery options, and introduces stricter penalties for healthcare workers found guilty of abuse or neglect, with fines up to N$100,000, imprisonment up to two years, or both. Additionally, it mandates medical aid schemes to offer broader coverage for mental health conditions and includes special provisions for offenders and inmates with mental health conditions, prioritizing their treatment and rehabilitation.
Education directors are calling for the N$10 school admission application fee to be optional, citing concerns that some parents may struggle to afford it. This comes despite the Ministry of Education, Innovation, Youth, Sport, Arts, and Culture allowing schools to charge up to N$10 for administrative costs related to admission forms for the 2027 school year. Kunene education director Sophia Fredericks stated that the fee should be optional, especially for parents with multiple children, and emphasized that paying the fee does not guarantee admission. Hardap education director Paul Lewin stressed that children should not be denied education due to the N$10 fee and that parents unable to pay should still be allowed to apply. Khomas regional education director Paulus Nghikembua urged the public to report schools charging more than the approved amount. While some schools in Windhoek, such as Windhoek High School, Immanuel Shifidi Secondary School, and Eros Primary School, are charging within the N$10 limit, some private schools are reportedly charging N$100 for an application. The ministry's executive director Erastus Haitengela advised reporting schools charging excessive fees to circuit inspectors or regional directors.
Lot Ndamanomhata, the newly appointed chairperson of the National Arts Council of Namibia, plans to increase the creative sector's economic contribution to the country from 1.5% to 3% of the national GDP under the sixth National Development Plan. He noted that Namibia's creative landscape is transitioning from uncoordinated operations to a more structured ecosystem. Between 2022 and 2024, 327 local film productions generated an average of N$122.5 million in spending and created over 2,400 jobs. Ndamanomhata acknowledged that policy, infrastructure, and financial deficits restrict the industry's capacity, with funding being the most pressing issue as many creative projects are self-financed due to artists' inability to meet credit requirements. The state's direct financial support is low, with a 2026/27 national budget allocation of approximately N$6.1 million for over 130,000 active creators. Namibian artists also face global digital hurdles, including exclusion from YouTube monetization and inactive PayPal payout functions. Ndamanomhata also highlighted the challenge of local art often only being celebrated after international validation. The new board is shifting its grant distribution strategy to enforce geographic inclusivity, aiming to reach all 121 constituencies. The council is currently running its second funding call for the 2026/27 cycle, with a deadline of July 3. Ndamanomhata called for immediate private sector intervention, stating that the national budget alone