IMF raises alarm over wage bill, again
The International Monetary Fund (IMF) has acknowledged Namibia’s efforts to restrain public debt but has warned that decisive action is still needed to contain the rapidly growing public wage bill over the medium-term expenditure framework (MTEF) period.
The remarks came after the conclusion of the IMF’s Article IV mission to Namibia last week.
“Looking ahead, further fiscal adjustment is critical to put debt firmly on a downward path. This will require concrete measures to ensure that the envisaged primary surpluses under the medium-term expenditure framework are achievable. Strong expenditure restraint, particularly to contain recurrent spending, and improved revenue administration will be critical,” said Xiangming Li, who led the IMF delegation.
The IMF has repeatedly expressed concern over Namibia’s wage bill and continues to call for structural reforms to bring it under control.“Priority should be given to containing the public wage bill through civil service reforms, for which the ongoing review to align staff size, skills, and deployment is an essential step. In addition, full implementation of the planned Public Service Employees Medical Aid Scheme (PSEMAS) reform can generate significant savings,” Li added.
Namibia’s public service has expanded to nearly 119,000 employees, including uniformed personnel from the security cluster, pushing the annual wage bill above N$36 billion, according to earlier New Era reporting.At least N$3.62 billion is spent each year on medical aid and related benefits.
By the end of 2024, government offices, ministries, and agencies employed 111,535 people. Prime Minister Elijah Ngurare noted the growth in the public service but emphasised that the expansion must deliver faster and better service delivery to Namibians.“As long as the increase in the public service workforce balances quality service delivery with staff numbers, Namibians will have little cause for concern,” he said.
“The total number of people on the Public Service Payroll as of 31 December 2025 was 118,936. This represents the workforce employed by the government to deliver services to the Namibian people,” Ngurare added.
