International relations ministry hit by exchange rate pressures, budget strains

By: Hertha Ekandjo

The Ministry of International Relations and Trade faced a series of financial challenges during the 2024/2025 fiscal year, largely driven by exchange rate fluctuations that affected the majority of its operational budget.

According to minister, Selma Ashipala-Musavyi, who presented the ministry’s budget speech in Parliament last week, approximately 80% of the ministry’s operational budget was impacted by volatile currency movements.

These fluctuations, she said pose a significant financial risk and have stalled essential capital projects such as property renovations, construction, and acquisitions at Namibia’s diplomatic missions abroad and at the ministry’s headquarters.

“This financial instability continues to undermine our ability to execute crucial projects and maintain our infrastructure abroad,” the Minister stated.

As the ministry transitions into the 2025/2026 financial year, it noted that it remains committed to aligning its activities with Namibia’s national development goals, including economic growth, job creation, youth empowerment, and improved service delivery in sectors such as agriculture, health, education, housing, and sanitation as outlined in the SWAPO Party Manifesto.

The ministry also highlighted its expanded mandate, which now fully integrates international relations and trade, aiming to align political and economic diplomacy to deliver greater impact for the country.

For the new financial year, 91.5% of the ministry’s total budget amounting to N$1.077 billion is allocated to operational expenses, supporting six key programmes that form the backbone of its diplomatic and trade missions.

More detailed allocations and programme descriptions are expected to be shared in the coming weeks as the Ministry rolls out its implementation strategy.