IMF warns Namibia against rising debt

International fund recommends Govt cut wage bill

The International Monetary Fund has raised concerns over Namibia’s growing public debt and has recommended that the government cut the wage bill.

In its 2026 Article IV consultation report, the International Monetary Fund (IMF) cautions that rising debt levels and increased government financing needs could push up borrowing costs, weaken investment and put pressure on the country’s financial system.

The fund says Namibia is exposed to tighter global financial conditions, particularly developments in South Africa, where higher interest rates could quickly spill over into the local economy due to the close financial links between the two countries.