Netumbo says N166 billion debt is manageable

Vice President and SWAPO presidential candidate Netumbo Nandi Ndaitwa has poured cold water on the country’s crippling public debt, which now stands at N$165.8 billion or 60.1 per cent of the gross domestic product (GDP).

She said the government would not create unsustainable debt that could not be repaid. The main debt includes a 14.3 billion euro bond, which is due to be repaid on October 29, 2025.

Nandi Ndaitwa, speaking at a People’s Party Youth League (SPYL) question and answer session in Lendu on Friday, referred to measures taken to manage the country’s Eurobonds. “We have made arrangements to ensure that we can repay the Eurobonds when they mature. We have two Eurobonds, one of which matured in 2021 and we have already repaid it. The remaining Eurobond will also be repaid on time,” she said.

She stressed that the government would not create unsustainable debt.

“Our national debt has come down significantly. It was as high as 70 per cent but now it is below 60 per cent, which is within the permitted levels in the Southern African Development Community (SADC) region. Your government is responsible and will continue to be so. We cannot borrow recklessly and burden our people with unbearable debt,” she said.

“You can go to the international market and borrow money, they will give it to you, but the problem is you have to pay it back. If you don’t pay it back, they will take over the country. No minister will travel without their permission, there will be no salary increase without their consent, but we have decided to avoid that.”

inflation

Speaking about inflation, Nandi-Ndaitwa explained that as part of the global economy, the country is affected by external factors. “For example, before the conflict between Russia and Ukraine, the price of petrol was about 13 naira (per litre), but now it is over 22 naira. This is the inflation we are dealing with, driven by global events that are beyond our control,” she said.

The Vice President assured the public that steps had been taken to control inflation.

“National and international central banks are working hard to keep inflation under control and the Bank of Namibia is no exception. While this is challenging, we have seen some improvements. However, global events can quickly change the situation and affect oil prices and, in turn, the cost of goods and services.”

Small and Medium Enterprises

The Vice President also spoke about the need to set up a small and medium enterprise department.

“While the country’s population of about 3 million may not allow for many sectors to be set up, the Ministry of Trade and Industrialization has programmes to support small and medium enterprises. The ministry offers grant programmes for young entrepreneurs, starting with micro-enterprises and progressing to small, medium and large enterprises. The ministry has reintroduced the Micro-Enterprise Equipment Programme,” she said.

“The Ministry of Youth has programmes focused on women and youth empowerment. Ensuring both young men and women are included in these programmes is crucial, given that cultural norms may exclude young women from funding opportunities. We must ensure that both girls and boys are supported in our development journey,” she added.

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