Namibia has successfully discharged its $750 million (R13-billion) eurobond, representing the most substantial single-day debt obligation in the nation’s annals, according to the Bank of Namibia’s announcement. Issued in 2015 with a coupon rate of five point two five per cent, the instrument financed critical infrastructure initiatives, developmental projects, and budgetary requirements, underscoring the southwest African country’s strategic foray into international capital markets.
The settlement drew upon a multifaceted funding strategy: $444 million from a dedicated sinking fund accumulated over time, supplemented by loans from domestic lenders including Standard Bank Namibia, FNB Namibia, Bank of Windhoek, and Absa Namibia. This approach mitigated reliance on external borrowing amid volatile global rates, as detailed by economist Almandro Jansen from Simonis Storm Securities in an interview.
Central bank governor Johannes !Gawaxab affirmed the transaction’s completion, while finance minister Ericah Shafudah highlighted its role in bolstering Namibia’s fiscal credibility and paving the way for subsequent engagements in worldwide debt arenas. The payout is anticipated to diminish foreign reserves from $3.1 billion at September’s close to roughly $2.7 billion by year-end, reflecting a prudent drawdown to honour commitments.
Jansen praised the move as a testament to Namibia’s reliability as a borrower, navigating elevated costs and external pressures with discipline. Nonetheless, he cautioned that sustained borrowing exceeding economic expansion, coupled with tepid investment, could deplete fiscal safeguards and heighten vulnerability.
This milestone aligns with Namibia’s broader economic trajectory, where debt-to-GDP hovers around seventy per cent—elevated yet manageable—amid oil discoveries like Galp’s Mopane field promising up to ten billion barrels and potential revenue windfalls from 2029, as projected by the International Monetary Fund in its latest Namibia report. The repayment averts default risks, enhancing investor appeal in a region where peers like Zambia and Ghana have restructured debts post-pandemic.
With a $12 billion economy driven by mining, tourism, and agriculture, Namibia’s action reinforces its investment-grade rating from Fitch (BB- stable), distinguishing it from sub-Saharan averages, according to Fitch Ratings’ October 2025 assessment. As the country anticipates elections and green hydrogen ventures, this debt clearance signals fiscal maturity, potentially unlocking concessional financing for sustainable growth amid climate challenges.