Namibia prepared to pay back N$13 billion Eurobond

NAMIBIA IS EAGER … Johannes !Gawaxab, Bank of Namibia Governor, with representatives of the London Stock Exchange, bankers and capital market participants in London.

Governor of the central bank, Johannes !Gawaxab, says the country has a strategy in place to ensure it pays back a loan of N$13 billion from investors by issuing a Eurobond.

According to !Gawaxab, the Eurobond that is listed with the London Stock Exchange matures in November 2025.

This comes after stakeholders expressed interest in the country’s plans for the redemption of this Eurobond during an address in London this week.

!Gawaxab says the country is keen on exploring innovative financing models with investors and other stakeholders.

He says there are lessons to be learned from other countries when it comes to fostering inclusive growth.

“Economic growth is in everyone’s interest, hence the need to focus on inclusive growth. Policymakers are committed to ensuring that our economic policies benefit all Namibians, enabling sustainable and equitable development” says !Gawaxab.

He says the growth risk Namibia is currently facing is brought on by global monetary policies.

“The biggest risks to Namibia’s growth prospects include the prolonged tight global monetary policy stance, geopolitical tensions and China’s faltering recovery,” says !Gawaxab.

He says the gross domestic consumption is expected to decline from 4,2% in 2023 to 3,7% in 2024.

This is due to predictions of slow economic growth in the primary sector.

“The economy expanded by 4,7% during the first quarter of this year. However, looking ahead, Namibia’s real domestic product growth is projected to moderate from 4,2% in 2023 to 3,7% in 2024 due to anticipated slowdowns in the primary industry, partly due to drought conditions,” says !Gawaxab.

He says economic activity during the first five months of this year was driven by mining and tourism, including investments in oil exploration

During an interview on Network Television’s The Agenda, minister of finance and public enterprises Iipumbu Shiimi said the government has been using a saving strategy to make sure public debt is reduced.

Shiimi said they have experience in paying Eurobonds.

“The government has a savings strategy that involves putting aside funds specifically designated to cover the upcoming maturity. There is currently N$9 billion from the reserves being used to pay off some of the bond,” he said.

According to Shiimi, there was a consideration to convert US$250 million of the total into local debt.

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