Namibia: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Namibia

Promoting job-rich growth is a key focus of the government, given high unemployment, particularly among the youth. Economic growth has been supported by the services sector and mining, including in oil exploration, although oil production prospects remain uncertain. The 2023/24 drought has depressed agricultural production, causing a widespread food security crisis. The ruling party retained an outright majority in the general elections in November 2024; the program of the new administration, which took office in March 2025, emphasizes job creation. High Southern African Customs Union (SACU) transfers helped improve the fiscal balances in FY23/24, but delays in fiscal reforms in the run-up to the elections and measures for food security contributed to a weaker fiscal balance in FY24/25. The Bank of Namibia’s policy rate has been kept below that of the South African Reserve Bank (with the gap currently at 50 bps).