Accra:The country's current account deficit increased to N$12.1 billion in the second quarter of 2026, up from N$10.7 billion in the first quarter. This rise is attributed to a larger merchandise trade deficit and heightened payments for services related to oil and gas exploration and appraisal.

According to Namibia Press Agency, the Bank of Namibia's September 2026 Quarterly Bulletin highlighted that the deficit grew by N$1.3 billion quarter-on-quarter and by N$6.8 billion compared to the same period in 2025. The report noted that, as a percentage of quarterly GDP, the deficit expanded to 17.1% in the second quarter of 2026, compared to 15.2% and 8.1% deficits in the previous quarter and the corresponding quarter of the previous year, respectively.

The current account reflects transactions between Namibia and other countries, covering trade in goods and services, income, and transfers. A deficit indicates that payments to other countries exceeded receipts during the period. The bulletin identified the widening merchandise trade deficit as a key factor, indicating a greater gap between the value of imports and export earnings.

Increased payments for services, especially those related to oil and gas exploration, also contributed to the deficit. These expenses are part of the costs associated with the petroleum sector's activities.

Despite the current account deficit, international reserves rose during the quarter, showing divergent trends between the current account and reserve positions. Foreign reserves increased by 9.0% to N$56.4 billion at the end of June 2026, supported by Southern African Customs Union receipts, financial-account inflows, and revaluation gains. The reserves equated to 3.5 months of import cover at the end of June.

Overall, the figures indicate a significant widening of Namibia's external payments gap compared to both the first quarter and the same quarter in 2025, with service payments related to oil and gas exploration being a significant factor in this increase. These statistics are part of the Bank of Namibia's comprehensive review of external-sector developments for the second quarter of 2026.