By: Hertha Ekandjo
The government debt has surged by 8.3%, reaching N$157.6 billion at the end of June 2024, driven primarily by increased issuance of Treasury Bills (TBs) and Internal Registered Stock (IRS), alongside a rise in external borrowing.
This rise in external debt is largely attributed to recent loans from the KFW Development Bank and the African Development Bank (AfDB), aimed at financing the government’s budget deficit.
In its latest quarterly bulletin, the Bank of Namibia noted that despite the increase in debt levels, the government’s total loan guarantees as a percentage of Gross Domestic Product (GDP) saw a slight decline of 0.5 percentage points, dropping to 3.3% year-on-year.
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