Netumbo says country’s N$166bn debt manageable
Vice-President and Swapo presidential nominee Netumbo Nandi-Ndaitwah has poured cold water over the severity of the country’s public debt, which stands at N$165.8 billion, or 60.1% of the gross domestic product (GDP).
She said the government is not creating unsustainable debts it cannot pay back. Among the key obligations is a N$14.3 billion Eurobond, due for repayment on 29 October 2025.
Speaking at a Swapo Party Youth League (SPYL) question-and-answer session in Rundu on Friday, Nandi-Ndaitwah noted the measures taken to manage the country's Eurobonds. "We have made arrangements to ensure we can pay off the Eurobonds when they mature. We had two Eurobonds, one of which matured in 2021 and we paid it off. The remaining Eurobond will also be paid on time," she said.
She emphasised that the government is not creating unsustainable debts.
"Our national debt has reduced drastically. At one point, it was at 70%, but it is now below 60%, which is within the allowable level in the Southern African Development Community [SADC] region. Your government is responsible and will continue to be so. We cannot borrow carelessly and burden our people with unmanageable debt,” she said.
“You can go to the world market and borrow money [and] they will give it [to you], but the problem will come when you have to pay it back. If you fail to pay, they are going to take over this country. No minister will travel without their permission and there will be no salary increments without their say-so, but we have decided to avoid such a situation.”
Inflation
Addressing concerns about inflation, Nandi-Ndaitwah explained that the country, as part of the global economy, is influenced by external factors. "For example, before the Russia-Ukraine conflict, petrol prices were around N$13 [per litre], but now they exceed N$22. This is the kind of inflation we are dealing with, driven by global events beyond our control,” she said.
The vice-president assured the public that measures are in place to manage inflation.
"National and international central banks strive to contain inflation, and the Bank of Namibia is no exception. While it is challenging, we are seeing some improvement. However, global events can quickly change the situation, affecting oil prices and, consequently, the cost of goods and services."
SMEs
The vice-president also addressed the need for a department for small and medium enterprises (SMEs).
“While the country's population of around three million may not warrant numerous departments, the ministry of trade and industrialisation has programmes to support SMEs. There are funding programmes for young entrepreneurs, starting with micro-enterprises and progressing to small, medium and large businesses. The ministry has reintroduced equipment schemes for micro-enterprises,” she said.
"The ministry of youth has programmes focusing on women and youth empowerment. It is crucial to ensure that both young men and women are included in these programmes, considering cultural norms that may otherwise exclude young women from funding opportunities. We must ensure that both the girl child and the boy child are supported in our development processes,” she added.
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She said the government is not creating unsustainable debts it cannot pay back. Among the key obligations is a N$14.3 billion Eurobond, due for repayment on 29 October 2025.
Speaking at a Swapo Party Youth League (SPYL) question-and-answer session in Rundu on Friday, Nandi-Ndaitwah noted the measures taken to manage the country's Eurobonds. "We have made arrangements to ensure we can pay off the Eurobonds when they mature. We had two Eurobonds, one of which matured in 2021 and we paid it off. The remaining Eurobond will also be paid on time," she said.
She emphasised that the government is not creating unsustainable debts.
"Our national debt has reduced drastically. At one point, it was at 70%, but it is now below 60%, which is within the allowable level in the Southern African Development Community [SADC] region. Your government is responsible and will continue to be so. We cannot borrow carelessly and burden our people with unmanageable debt,” she said.
“You can go to the world market and borrow money [and] they will give it [to you], but the problem will come when you have to pay it back. If you fail to pay, they are going to take over this country. No minister will travel without their permission and there will be no salary increments without their say-so, but we have decided to avoid such a situation.”
Inflation
Addressing concerns about inflation, Nandi-Ndaitwah explained that the country, as part of the global economy, is influenced by external factors. "For example, before the Russia-Ukraine conflict, petrol prices were around N$13 [per litre], but now they exceed N$22. This is the kind of inflation we are dealing with, driven by global events beyond our control,” she said.
The vice-president assured the public that measures are in place to manage inflation.
"National and international central banks strive to contain inflation, and the Bank of Namibia is no exception. While it is challenging, we are seeing some improvement. However, global events can quickly change the situation, affecting oil prices and, consequently, the cost of goods and services."
SMEs
The vice-president also addressed the need for a department for small and medium enterprises (SMEs).
“While the country's population of around three million may not warrant numerous departments, the ministry of trade and industrialisation has programmes to support SMEs. There are funding programmes for young entrepreneurs, starting with micro-enterprises and progressing to small, medium and large businesses. The ministry has reintroduced equipment schemes for micro-enterprises,” she said.
"The ministry of youth has programmes focusing on women and youth empowerment. It is crucial to ensure that both young men and women are included in these programmes, considering cultural norms that may otherwise exclude young women from funding opportunities. We must ensure that both the girl child and the boy child are supported in our development processes,” she added.
[email protected]
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