Finance Minister Tables N$106.3 Billion Budget for 2025/26 Financial Year - Issue #26☕

Good Morning. Here is your Friday edition to wrap up the week.

Featured Updates:

• Budget Buzz: Finance Minister Ericah Shafudah tabled a N$106.3 billion budget for 2025/26—N$79.8 billion for daily costs, N$12.8 billion for projects (including N$450 million for sports: N$200 million for stadiums, N$200 million for sports facilities, N$50 million for leagues), and N$13.7 billion for debt interest. Education gets N$24.8 billion, health N$12.3 billion, and there’s a N$13.7 billion deficit.

• Tax Court Coming: A new Tax Court is in the works for 2025/26 to handle tax disputes faster.

• Booze Costs More: Alcohol excise duties are up 6.75% since March 12—sparkling wine’s N$1.20 extra per liter, a 750ml bottle of spirits up N$5.53.

• Eurobond Update: Namibia’s saved US$463 million for a US$750 million debt due October 2025, adding N$3 billion this year.

Enjoy the read, have a blessed weekend, and gear up for a productive week ahead! ☕

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BUSINESS & ECONOMY

Finance Minister Tables N$106.3 Billion Budget for Namibia’s 2025/26 Financial Year

Namibia’s New Minister of Finance and Social Grants Management, Ericah Shafudah, tabled a N$106.3 billion national budget for the 2025/26 financial year in the National Assembly. This marks a N$6.2 billion increase from the 2024/25 budget of N$100.1 billion, reflecting the government’s commitment to balancing operational needs with development priorities amid growing fiscal pressures. Presented under the theme “Beyond 35: For a Prosperous Future,” the budget aims to drive economic stability and social upliftment in a challenging economic landscape.

Budget Breakdown:

• Total Budget: N$106.3 billion

  • A 4.9% increase from the revised 2024/25 estimates of N$101.2 billion, signaling cautious yet ambitious spending.

• Operational Expenditure: N$79.8 billion

  • Covers day-to-day government operations, including salaries, social grants (e.g., old-age pensions raised to N$1,600 monthly in 2024), and essential services. This reflects a 2.3% rise from the previous year’s mid-term estimates.

• Development Expenditure: N$12.8 billion

  • Allocated for infrastructure projects like railways, energy, and water systems, including N$3.2 billion funded through external loans and grants. This represents a 22.6% increase from 2024/25, aimed at addressing bottlenecks and boosting growth.

• Debt Servicing (Interest Payments): N$13.7 billion

  • Accounts for 14.8% of revenue and 4.9% of GDP, up from 14.2% last year, underscoring the focus on meeting statutory obligations, notably the US$750 million Eurobond repayment due in October 2025.

Key Ministry Allocations:

Preliminary figures suggest the following priorities:

• Education: N$24.8 billion – Likely the largest allocation, funding schools and human capital development.

  Spending on Sports:

  • N$200 million to build Category 2 stadiums across the country.

  • N$200 million for basic sports facilities (like fields or courts).

  • N$50 million for sports leagues (to run competitions).

• Health: N$12.3 billion – Supports healthcare services and facilities.

• Finance: N$14.4 billion – Includes N$7.2 billion for social grants, N$100 million for MeatCo, and N$320 million for TransNamib.

• Home Affairs: N$7.9 billion – Enhances security and administration.

• Agriculture: N$2.6 billion – Bolsters food security efforts.

Fiscal Outlook

The budget projects a deficit of N$13.7 billion (4.6% of GDP), a notable rise from the N$8.9 billion (3.2% of GDP) deficit in 2024/25. This widening gap highlights the need for fiscal discipline as Namibia tackles a weaker revenue outlook—driven by a projected N$7 billion drop in Southern African Customs Union (SACU) receipts from N$28 billion in 2024 to N$21 billion in 2025—and global commodity price declines. Despite this, Namibia’s economy is expected to grow by 4.5% in 2025 and 4.7% in 2026.

The Bottom Line

Shafudah’s N$106.3 billion budget reflects Namibia’s resolve to navigate fiscal challenges while investing in its future. With a focus on operational efficiency, infrastructure development, and social upliftment, the plan could pave the way for stability and prosperity, if executed strategically. However, the growing deficit and external pressures like greylisting and commodity price volatility pose risks. As full details emerge next week with the Medium-Term Expenditure Framework (2025-2028), Namibians await confirmation of how this budget will deliver on its promise of a “prosperous future.”

Source: The Namibian

Namibia to Establish Dedicated Tax Court by 2025/26

Finance and Social Grants Management Minister Erica Shafudah has announced the government’s advanced plans to establish a dedicated Tax Court, with the necessary legislation expected to be tabled during the 2025/26 financial year. This initiative aims to streamline tax-related dispute resolution and enhance efficiency in handling litigation matters.

Key Highlights:

• Tax Court Legislation:
  The draft bill is currently under review by legal drafters, with plans to table it in the National Assembly within the next fiscal year.

• Public Procurement Court:
  In addition to the Tax Court, Namibia is moving forward with establishing a Public Procurement Court. Initially proposed by former Finance Minister Iipumbu Shiimi, this specialized court will adjudicate disputes related to public procurement law, ensuring transparent and expert handling of appeals and non-compliance cases.

Impact on Governance and Efficiency:

• Streamlined Dispute Resolution:
  Both courts are expected to enhance legal clarity and efficiency in Namibia’s tax and procurement sectors, providing specialized forums for adjudication.

• Local Capacity Building:
  By reducing reliance on general judicial systems, these courts will foster expertise in tax and procurement law, supporting Namibia’s broader economic reforms.

The Bottom Line:

The establishment of specialized courts marks a significant step in Namibia’s efforts to modernize its legal framework and promote transparency in governance. With these initiatives, the government is laying the groundwork for a more efficient and equitable system that supports economic growth and accountability.

Source: The Brief

Namibia Hikes Alcohol Excise Duties: Prepare for Price Increases!

Namibia's binge drinkers are bracing for higher prices as Finance Minister Erica Shafudah's announcement of a 6.75% increase in excise duties on alcohol has come into effect on 12 March 2025. The price adjustments will impact various alcoholic beverages and tobacco products, potentially impacting consumer habits.

Price Increase Breakdown:

• Sparkling Wine: N$1.20 more per liter

• Spirits (750ml bottle): N$5.53 more

• Cigars: N$369.36 more per kg

• Fortified Wine: 64 cents more per liter

• Spirits (per liter of absolute alcohol): N$18.52 more

• Cigarettes (pack of 20): N$1 more

Broader Fiscal Picture:

The announcement is coupled with the tabling of a N$106.3 billion budget, where operational expenses account for over 70% of the total. Operational costs have grown by 2.3% compared to FY2024/25, underscoring the need for increased revenue generation.

The Bottom Line:

As consumers face higher prices on alcohol and tobacco products, the excise duty increase reflects the government's effort to balance revenue generation with potential impacts on consumption patterns. The move also takes place against the backdrop of a large operational budget, emphasizing the importance of fiscal discipline.

Source: The Namibian

Namibia Nears Target for Eurobond Sinking Fund as Repayment Deadline Approaches

Namibia has accumulated US$463 million in its Sinking Fund, edging closer to the US$500 million target needed to partially repay the US$750 million Eurobond maturing on October 29, 2025. Finance Minister Erica Shafudah confirmed the progress during the tabling of the FY2025/26 national budget, highlighting the government’s commitment to meeting its debt obligations.

Key Developments:

• Current Fund Status:
  The Sinking Fund now holds US$463 million, with plans to inject an additional N$3 billion (US$162 million) during FY2025/26.

• Remaining Balance:
  The remaining N$2.3 billion (US$125 million) will be raised through domestic borrowing, ensuring Namibia meets its repayment obligations without defaulting.

• Fiscal Impact:
  Analysts project that settling a significant portion of the Eurobond will reduce Namibia’s debt-to-GDP ratio to approximately 56%, well below the international benchmark of 60%. This move is expected to lower interest payments and mitigate exchange rate risks.

Strategic Planning:

The Bank of Namibia (BoN) previously reported that only N$1.5 billion (US$80 million) remained to reach the Sinking Fund’s target. With strategic savings and domestic refinancing plans, Namibia is on track to retire two-thirds of the bond at maturity, with the remaining one-third refinanced locally or through cost-effective instruments.

The Bottom Line:

Namibia’s proactive approach to managing its Eurobond repayment demonstrates fiscal responsibility and strengthens investor confidence. By nearing its Sinking Fund target and reducing debt vulnerabilities, the country is positioning itself for improved creditworthiness and long-term economic stability.

Source: The Brief

TECH

AGI: The Quest for Thinking Machines & Its Potential for Africa

Artificial General Intelligence (AGI)—machines with human-like cognitive abilities—represents a frontier that could revolutionize how we live and work. While the pursuit of AGI is driven by tech giants worldwide, its potential impact on Africa is particularly transformative.

What is AGI?

AGI refers to AI systems that can understand, learn, and apply knowledge across a wide range of tasks, much like humans. Unlike narrow AI focused on specific functions, AGI adapts independently to unexpected challenges.

The AGI Race:

Companies like OpenAI, Google, and Meta are investing heavily in AGI due to its potential to revolutionize healthcare, education, finance, and other sectors. In Namibia, AGI-driven advances could foster economic growth and improve public services.

AGI vs. Sentient AI:

While AGI aims for human-level intelligence, sentient AI would possess consciousness and subjective experiences. Sentient AI remains speculative due to our limited understanding of human consciousness.

The Matrix Analogy:

The film "The Matrix" provides a compelling analogy, where machines with AGI oversee a simulated world. The film explores questions of sentience, prompting us to consider the ethical implications of AI development.

The Bottom Line

The journey toward AGI is promising but challenging. Each new model, like ChatGPT-4.5, sparks excitement while highlighting the complexity of replicating human cognition. For African AI enthusiasts, developers, and entrepreneurs, advancements in AGI offer fresh opportunities to solve complex local challenges, uplift communities, and shape a brighter future. Just as Neo discovered his purpose in the Matrix, emerging AI in Africa can find its purpose in transforming the continent.

Sources: The Brief

Facebook Revives Its Roots with a New Friends Tab

Facebook is taking a nostalgic turn back to its “OG” roots, unveiling a revamped Friends tab on March 27, 2025, designed to refocus the platform on personal connections—a move that harks back to its original mission of linking friends in a simpler social networking experience.

Key Highlights:

A Friends-Only Space: Launched in the U.S. and Canada, the new Friends tab strips away recommended content, spotlighting only updates from friends—think posts, Reels, stories, birthdays, and friend requests. It’s a clean break from the algorithm-heavy feeds of recent years.

Back to Basics: Meta’s blog post admits the platform had drifted from its core: “The magic of friends has fallen away” amid expansions into Groups, Video, and Marketplace. This update, teased by CEO Mark Zuckerberg in January as part of his 2025 goals, aims to reclaim that lost focus and boost cultural relevance.

Easy Access: Available via the navigation bar on the Home Feed or the Bookmarks section, users can even pin the tab for quick access through Settings & Privacy > Tab bar customization—a nod to user convenience.

Challenges and Opportunities:

Winning Back Users: Following a Gen Z-targeted redesign in October that leaned into video and community features, this shift addresses a broader audience—particularly those who’ve drifted to Instagram or TikTok. Zuckerberg’s vision of a more “culturally influential” Facebook hinges on recapturing its early charm.

Balancing Old and New: The challenge lies in blending this retro vibe with modern expectations. While the Friends tab strips back complexity, it must still compete in a crowded social media landscape where younger users prioritize trends over nostalgia.

The Bottom Line

Facebook’s new Friends tab is a deliberate step toward rediscovering its soul—connecting people with the people they know, not just the content they’re fed. As the first of promised “OG” updates in 2025, it’s a bid to reignite the platform’s original spark while proving it can evolve without losing its identity. Whether it’s enough to pull users back remains to be seen, but the nostalgia play is officially on.

Source: TechCrunch

PERSONAL DEVELOPMENT

Namibia: Economic Outlook & Financial Tips for 2025/26

As the country looks ahead to the 2025/2026 financial year following the tabling of the national budget, here are some key economic and financial tips to navigate the coming months:

Focus on Growth Sectors:

• Capitalize on the Oil & Gas Boom: With potential FIDs on the horizon, upskill and explore opportunities in logistics, services, and supply chains related to the energy sector.

• Embrace Digitalization: Take advantage of initiatives like CRAN's Universal Service Fund to improve digital literacy and participate in the growing digital economy.

• Invest in Education and Training: Prioritize skills development to take advantage of President Nandi-Ndaitwah's commitment to education and youth empowerment.

Financial Prudence:

• Budget Wisely: With rising excise duties on alcohol and potential price increases, carefully manage your spending and prioritize essential needs.

• Save and Invest: Take advantage of local investment opportunities to grow your wealth and contribute to Namibia’s economic development.

• Support Local Businesses: Prioritize local products and services to boost the domestic economy and support job creation.

The Bottom Line:

As Namibia navigates its economic journey, a combination of strategic investments, financial prudence, and community support will be crucial for sustainable growth. Let's embrace opportunities, build resilience, and work together to create a prosperous future for all Namibians! #Namibia #EconomicOutlook #FinancialTips

-TEAM REVOLOX