Namibia's economy has remained virtually stagnant for more than five years.
This is owing to a combination of factors that continue to add pressure on households, businesses, and government finances, and warnings are that recovery would take time.
Namibia's cost of living continues to rise, with annual inflation increasing to 5,6% in October, up from 5,4% in September.
Bank of Namibia Governor Ebson Uanguta says the country's economic recovery faces increased pressure from foot-and-mouth disease, rising fuel costs and a widening trade deficit.
This is despite projections of economic growth of 2.1% this year.
Rising fuel prices, the threat of capital outflows, and the need to protect Namibia's international reserves have prompted the Bank of Namibia to raise its Repo rate by 25 basis points to 7%.
Namibia's economic growth is projected to be at 2,3% in 2026, lower than the earlier forecast of 3,1%.
This reflects weaker-than-expected performance in the first half of the year.
Fuel prices across Southern Africa have surged to record highs this month, driven by a combination of escalating geopolitical tensions in the Middle East, weaker regional currencies and the phasing out of government tax-relief measures.
Namibia’s annual inflation rate accelerated to 5% in August 2026, reaching its highest level since February 2024.
With the monetary policy announcement expected tomorrow, economist Rodney !Hoaeb hopes that the central bank will have consumers in mind, as the increment of the repo rate was already choking.
The Bank of Namibia (BoN) has announced a 25-basis point increase in the repo rate to 6.75%. The move came in light of rising inflation, global economic uncertainty, and the need to protect the currency peg between the Namibian dollar and the South African rand.
Motorists across the country will pay more for fuel from midnight tonight, as pump prices are set to increase once again.
Fuel prices affect more than just motorists - they influence transport, food prices, farming, logistics, and business operations.
