Namibia’s central bank governor, Johannes !Gawaxab, announced on Wednesday that the country has successfully mobilised funds to redeem its $750 million Eurobond, which matures on October 29 the largest single debt repayment in Namibia’s history.
The Eurobond, issued in 2015, was designed to support national development, strengthen the budget, and stabilise the balance of payments. According to the Bank of Namibia, the total redemption amount equals 13.5 billion Namibian dollars ($779 million), based on an exchange rate of 17.5 Namibian dollars to the U.S. dollar.
“We have mobilised the full amount, and that mobilisation is within the sovereign debt management strategy of the bank,” Gawaxab said during a Monetary Policy Committee briefing. He reaffirmed Namibia’s dedication to upholding its creditworthiness, stating, “If we issue paper, it’s a clear testament that we are committed to deliver on our promises. The economic fundamentals of the country are above board.”
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However, !Gawaxab cautioned that Namibia’s foreign reserves will likely decline following the Eurobond redemption. Reserves are projected to drop by about 25 percent from 63 billion Namibian dollars in 2024 to 47 billion by the end of 2025.
Despite this expected reduction, the central bank assured that reserves remain strong. It is also pursuing measures such as currency swap line arrangements with other financial institutions to bolster reserve levels and meet external obligations.
The bank further forecast a moderate recovery in reserves to around 53 billion Namibian dollars in 2026.
