Windhoek:Namibia's total corporate debt saw a significant increase of 10.3%, reaching N$219.3 billion by the end of June 2026, largely due to heightened foreign borrowing, as reported by the Bank of Namibia (BoN).

According to NAMPA, the BoN's October 2026 Financial Stability Report, released on Monday, detailed that corporate debt rose from N$198.9 billion at the end of December 2025. The report highlighted a 13.1% increase in foreign corporate debt, which reached N$164.4 billion during the reviewed period.

The report noted that this rise was primarily driven by higher direct investment intercompany borrowing, especially among companies in the mining sector. Additionally, the increase in trade credit uptake by companies in various sectors, along with higher non-resident currency and deposits held with domestic banks, further contributed to the increase in foreign debt.

Domestic corporate debt also saw a rise of 2.8%, totaling N$54.9 billion at the end of June 2026, mainly due to increased credit uptake by companies. The Bank of Namibia identified the growing corporate debt as a risk that requires ongoing monitoring in its assessment of the nation's financial stability.