Namibia: Taxpayers Face N$11.8bnin State-Backed Debt

What the report says

Namibia’s public finances are under added strain as state-owned enterprises pay less into the budget while taxpayers remain exposed to about N$11.8 billion in state-guaranteed debt, according to a report carried by The Namibian and distributed by AllAfrica. The amount is described as roughly 4% of gross domestic product, underscoring the risk to the government if public entities struggle to service their loans.

The issue surfaced in finance minister Ericah Shafudah’s mid-year budget review for the 2026/27 financial year, presented in parliament. She said lower dividends from public enterprises and weaker mineral royalty income forced the Treasury to cut its non-tax revenue estimate to N$5 billion from N$6.1 billion. The government also reduced its overall revenue forecast to N$88.1 billion, reflecting softer collections from the mining sector.

Mining remains the main source of weakness, with diamond taxes and royalties especially hard hit. The report says projected diamond-related revenue has fallen sharply compared with earlier years, leaving the state with less room to cover spending needs without turning more to borrowing or other taxes.

The article also notes that public enterprises have previously left the government with legacy tax liabilities, and that the Finance Ministry is watching debt and guarantee risks closely. It says Treasury plans tighter credit-risk checks before issuing guarantees, while parliament is considering a governance amendment bill aimed at improving oversight, reporting and accountability in the public enterprise sector.