Namibian corporate debt rises to N$219.3 billion
State-owned enterprises also saw their debt increase by N$469 million in the first half of 2026.
Namibia's corporate debt stock grew by 10.3% to N$219.3 billion by the end of June 2026, up from N$198.9 billion in December 2025. This increase was primarily driven by higher foreign corporate debt, particularly intercompany loans for direct investment in the mining sector. State-owned enterprises (SOEs) also saw their combined debt rise by N$469 million to N$11.12 billion over the same six-month period.
The Bank of Namibia and NAMFISA's October 2026 Financial Stability Report noted that foreign SOE debt accounted for N$9.37 billion of the total SOE debt. The overall rise in corporate and SOE borrowing was also influenced by increased use of trade credit and higher non-resident deposits with domestic banks. Corporate debt now represents 74.5% of Namibia's nominal GDP, up from 69.8% at the end of 2025.
The report highlighted that a sustained depreciation of the Namibia Dollar could increase the cost of servicing foreign-denominated debt, potentially weakening corporate balance sheets. The financial stability risks for Namibia are tilted to the downside, with climate change, FMD, and cyber threats also identified as key concerns.
Why it mattersNamibian businesses and state-owned enterprises are increasing their debt, with a significant portion owed to foreign creditors, raising concerns about exchange rate risk.