Tiri Masawi
Namibia is set to receive N$24.3 billion from the Southern African Customs Union (SACU) in the 2026/27 financial year, up from N$21.8 billion in 2025/26.
SACU is a sub-regional trade bloc that includes Namibia, South Africa, Botswana, Lesotho, and Eswatini. Its main objective is to promote free trade among member states, coordinate customs policies, and distribute revenue from customs and excise duties according to an agreed formula.
The increase was announced by finance minister Ericah Shafudah during last week’s budget presentation in Parliament, highlighting SACU’s continuing role as contributor to the national revenue.
“The revenue for the financial year 2026/27 is estimated at N$89,8 billion, an increase of 2.5 percent from the revised preliminary outturn of N$ 87.4 billion for the 2025/26. A positive boost to revenue stems from the increase in SACU receipts, estimated at N$24.3 billion, up from the revised preliminary outturn of N$21.8 billion in 2025/26,” she said.
The announcement comes at a time when the government has consistently been urged to diversify revenue sources. “Despite the overarching goal of rationalising expenditure, the budget remains focused on essential social and developmental commitments,” she said. She added that around N$5.9 billion will be directed toward additional funding, including N$2.8 billion to subsidise tertiary education.
The overall operational budget for 2026/27 stands at N$80.6 billion, a modest increase of N$746 million from the previous year, with the total national budget reaching N$104 billion.
Education, innovation, arts, and culture will receive N$28 billion, which includes the N$2.8 billion for tertiary education subsidies and efforts to ease school congestion. Developmental projects have been allocated N$939 million, while sports, youth, and national services are set to receive N$750 million.
Health and social services will benefit from N$13.1 billion, including N$259 million for the recruitment of health professionals. The Ministry of Veteran Affairs is allocated N$1.5 billion, and transport infrastructure will receive N$2.1 billion from the state revenue fund. Other sectors, such as works, information and communications technology, finance, industries, mines and energy, environment, forestry and tourism, agriculture, and water and marine resources, all received dedicated allocations to support their operations and development initiatives.
Safety and security remain a top priority, with the sector receiving the second-largest share of the budget at N$17 billion. Defence is set to receive N$7.5 billion, while justice, judiciary, and anti-corruption bodies will also see targeted funding.
Government offices and oversight institutions received specific allocations to ensure continuity of governance and public service delivery over the Medium-Term Expenditure Framework (MTEF) period. The Prime Minister’s office will receive N$535 million in 2026/27 and N$1.5 billion over the MTEF, the National Assembly N$416 million and N$1.2 billion, the Auditor General N$133 million and N$406 million, the National Council N$134 million and N$409 million, Labour and Industrial Relations N$231 million and N$705 million, and the Electoral Commission of Namibia N$181 million and N$553 million over the MTEF period.
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