Windhoek: The Bank of Namibia (BoN) has confirmed the full redemption of Namibia's second Eurobond, valued at US dollars 750 million, marking a significant milestone for the country's financial credibility and economic stability. Namibia issued its first Eurobond in 2011 for US dollars 500 million (approximately N dollars 7.5 billion) at an interest rate of 5.5 percent.
According to Namibia Press Agency, speaking during the announcement by the Ministry of Finance, BoN Governor Johannes !Gawaxab emphasized Namibia's commitment to honoring its debt repayment obligations and maintaining responsible macroeconomic management. He stated that the government has fully discharged the US dollars 750 million Eurobond that matured this week.
The Eurobond, issued in 2015, was integral to supporting Namibia's development agenda, budget financing, and foreign reserves. !Gawaxab noted that such bonds are widely used by developing economies and are not unique to Namibia. Between 1997 and 2023, a total of 19 African countries issued 91 Eurobonds, with Egypt, Nigeria, South Africa, Ghana, Angola, and Kenya among the largest issuers.
'Eurobonds offer access to wider international debt markets, and from an investor perspective, they provide attractive risk-return trade-offs and good liquidity,' !Gawaxab added. He also mentioned that the repayment comes at a favorable time for Namibia, with economic growth projected at around 3 percent for 2025, strengthening to 3.9 percent in 2026. Inflation averaged 3.6 percent during the first eight months of 2025 and is expected to remain contained over the medium term.
Minister of Finance Ericah Shafudah highlighted the Eurobond's role in bridging critical financing gaps, supporting the national budget, enhancing reserve levels, and stimulating economic growth during global financial uncertainty. The proceeds from the Eurobond were used for transformative projects, significantly impacting Namibia's economy and people.
'From expanding road networks and energy infrastructure to investing in education and healthcare, the second Eurobond helped us lay the foundation for a more connected, productive, and equitable Namibia,' Shafudah said.