Namibia: 2026 Article IV Consultation-Press Release; and Staff Report

The 2026 Article IV Consultation discusses that Namibia’s economy faces headwinds, including depressed global diamond demand, gradual recovery of gold and livestock production, and elevated fuel prices from the war in the Middle East. Safeguarding macroeconomic stability requires maintaining fiscal prudence to place public debt on a downward path, carefully calibrating monetary policy to preserve the credibility of the exchange‑rate peg to the South African rand, and strengthening financial‑sector oversight to mitigate rising sovereign–financial sector linkages. Achieving inclusive and sustainable growth will require accelerating structural reforms to support private‑sector development, reduce regulatory bottlenecks, improve skills alignment, and enhance public investment efficiency, while establishing a robust and transparent framework to manage potential opportunities from developing oil, gas, and green hydrogen. Structural reforms are essential to unlock Namibia’s growth potential and ensure broad-based development. The emergence of oil, gas, and green hydrogen sectors presents an opportunity to diversify the economy and generate employment. Realizing these benefits will require clear policy frameworks, balanced local content strategies, and alignment of education and training systems with evolving labor market needs.