Windhoek: Bank of Namibia (BoN) Governor, Ebson Uanguta, has issued a warning that Namibia's public debt could escalate to 70 per cent of the country's gross domestic product by the end of the current fiscal year if the government fails to implement significant expenditure reforms. This caution was delivered during the 2026/27 Budget Reform Roll-Out Workshop held in Windhoek.According to Namibia Press Agency, Uanguta emphasized that the nation's debt has already surpassed the 60 per cent of GDP benchmark, currently standing at 65.2 per cent, which limits the government's fiscal flexibility. He highlighted the importance of curbing the debt growth to prevent it from reaching 70 per cent by year-end.Uanguta also noted a considerable decline in investor interest for government securities, with oversubscription rates dropping from previously high levels. Although he did not disclose the current ratio, he indicated that this trend signals a shrinking willingness from the private sector to lend to the governmen t.He further pointed out that the economic growth rate of only 1.7 per cent in 2025 is inadequate for addressing the country's high unemployment and inequality. The sluggish growth was attributed to factors such as weak diamond demand, challenges in livestock marketing due to drought in 2024, and the impact of the Middle East conflict on shipping and oil prices.The conflict in the Middle East, particularly disruptions in the Strait of Hormuz, has led to increased transport costs and fuel prices, impacting Namibia's budget projections that were set earlier in 2026. Uanguta underscored the necessity of budget reform, cautioning that without it, the government might face a situation where there is no demand for its securities.Looking ahead, Uanguta identified uranium mining and oil and gas exploration as potential drivers of economic growth. He mentioned that three uranium mines along the coast could start production within the next three years. However, he advised against prematurely borrowing against ant icipated oil revenues, emphasizing fiscal prudence.