National Planning Commission clarifies remarks on borrowing against future oil revenues

NPC director general Kaire Mbuende stated that the government will only incorporate oil income into its fiscal planning once projects achieve a final investment decision FID. This clarification follows criticism from the Independent Patriots for Change IPC, which accused Mbuende of proposing such borrowing despite uncertainties in the sector. Mbuende emphasized that government borrowing is guided by prudent fiscal management, debt sustainability, and long-term development priorities, with decisions based on broader economic performance rather than a single sector.

He explained that earlier expectations for oil production to begin sooner have shifted, with significant revenues now anticipated within the next five years. Consequently, revenue projections will only be considered after relevant projects reach FID and economic outcomes can be assessed with certainty. The government plans to address the development financing gap through domestic resources, public-private partnerships, foreign direct investment, and other sustainable mechanisms.

IPC parliamentarian Rodney Cloete had argued that Mbuende's reported remarks contradicted the Bank of Namibia governor Ebson Uanguta's warning against borrowing "in the name of oil" before production starts. Cloete highlighted Namibia's public debt, which stands at 65.2% of GDP, and cited delay