Namibia’s $750 Million Loan Repayment Does Not Mean The Country Is Debt-Free
Earlier this month, there were circulating reports that Namibia repaid 750 million dollars of its external debt. This report has sparked claims that the country has “wiped out its debt in a single day.” This interpretation is incorrect. While the repayment is significant, it does not mean Namibia is now free of debt.
What Actually Happened
On October 29, 2025, Namibia redeemed a 750 million dollars eurobond, this was confirmed by the Bank of Namibia. NBC News reports that 444 million dollars of the repayment came from a sinking fund, and the remainder, about 306 million dollars, was raised through local commercial banks. Finance minister, Ericah Shafudah, emphasised that no new foreign borrowing was done for this repayment, as the balance was raised domestically.
The “one-day” part is accurate in the sense that the maturity of this particular bond was met and paid in full in a single day.
Key Facts About Namibia’s Debt
Total Debt Stock and Recent Growth
As of March 2025, Namibia’s central government debt stood at 166.7 billion dollars, up 8.3 percent year-on-year. That debt corresponds to 66.3 percent of GDP at the end of March 2025. The Bank of Namibia projects that the debt-to-GDP ratio may moderate to 61.4 percent over the medium-term.
Domestic (Internal) Debt
Domestic debt is the largest share of Namibia’s public debt. Reports show domestic borrowing through treasury bills and internal government bonds is a main driver. By end-December 2024, domestic debt reached 126.1 billion Namibian dollars, representing about 50.2 percent of GDP. The government has explicitly shifted its borrowing strategy to reduce reliance on international capital. For the fiscal year 2025/26, the plan is to fund 80 percent of borrowing domestically and only about 20 percent externally.
External (Foreign) Debt
External debt was reported at 37.9 billion Namibian dollars by the end of December 2024, up 1.5 percent from earlier, largely due to currency depreciation. However, more recent statements suggest a modest decline in external debt by March 2025, helped by repayments to the IMF and a stronger Namibian dollar. According to the IMF, Namibia’s external debt-to-GDP ratio (public + private) has been declining from earlier highs.
CONCLUSION
The term, “wiped out all debt” is misleading, because this particular eurobond was one debt instrument and does not represent all of Namibia’s national debt. The Bank of Namibia’s governor, Johannes ! Gawaxab, also warned that the repayment would reduce foreign reserves.
Namibia’s president has previously said that Namibia’s total public debt remains significant. At one point, it stood at 166 billion Namibian dollars, or about 60 percent of the country’s GDP. So, the headline that Netumbo Nandi-Ndaitwah wiped out US$ 750 million debt in a day does not mean Namibia is now debt-free.
