STAFF WRITER
Namibia’s foreign reserves climbed to N$55.4 billion at the end of May, mainly due to higher receipts from the Southern African Customs Union (SACU), according to economic figures released by the Bank of Namibia last week.
The central bank also reported that the country’s current account deficit narrowed in the first quarter of 2026, while the economy continued to grow, supported by stronger performance in the services sector.
“On the external sector front, Namibia’s current account deficit narrowed during the first quarter of 2026, reflecting lower services payments and reduced net investment income outflows,” said Kazembire Zemburuka, the Bank of Namibia’s director of strategic communications and international relations.
The current account deficit fell to N$9.9 billion in the first quarter of 2026 from N$10.6 billion in the previous quarter and N$13.4 billion in the same period last year.
“As a percentage of quarterly GDP, the current account deficit declined to 14.0 percent in the first quarter of 2026, from 14.8 percent in the preceding quarter and 20.3 percent in the corresponding quarter of 2025,” Zemburuka said.
The Bank of Namibia said the country’s external balance sheet remained in a net asset position at the end of March, although it weakened compared to the previous quarter.
International reserves also increased by 0.4% quarter-on-quarter to N$51.8 billion at the end of March 2026, before rising further to N$55.4 billion by the end of May.
However, the central bank said the Real Effective Exchange Rate appreciated by 3.8% over the year, suggesting that Namibian products became less competitive in international markets.
On the domestic front, the economy recorded its 18th consecutive quarter of growth since the second quarter of 2021.
“In nominal terms, the size of the Namibian economy was estimated at N$70.9 billion, an expansion of N$4.7 billion compared to the N$66.2 billion recorded in the corresponding quarter of 2025. Having maintained positive growth since the second quarter of 2021, the rate of growth picked up to 2.0 percent from 0.1 percent in the final quarter of 2025,” Zemburuka said.
The Bank of Namibia said growth was mainly driven by the tertiary sector, including wholesale and retail trade, financial services, health, education and public administration.
Agriculture also performed strongly because of favourable rainfall, while fishing recorded solid growth. Mining activity, however, weakened.
“The secondary sector remained subdued, reflecting a contraction in manufacturing despite positive growth in construction and electricity generation. On the demand side, government consumption continued to support economic activity, while investment recovered, driven by increased spending on machinery, transport equipment, and construction. Although exports increased during the quarter, faster growth in imports resulted in a wider trade deficit,” Zemburuka said.
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