Africa-Press – Namibia. The Bank of Namibia (BoN) is set to introduce the country’s first-ever retail bonds in 2026, which will allow low- to medium-income earners to invest in government debt.
Retail bonds are a form of a loan to a company or government. When you buy a retail bond, you are lending the government money through the central bank.
The initiative is to target individuals who ordinarily will not be able to afford the minimum N$10 000 required to buy treasury bills, or the N$50 000 required to buy fixed-income bonds.
The bank is yet to decide on the minimum investment and tenure of the retail bonds.
In South Africa, a retail bond can be bought for as little as N$1 000 and carries no commission, agency, or service fees.
Inflation
The BoN projects that inflation will average 3.8% in 2026 – an increase from the the 3.6% projected in 2025.
Through the medium term, the quarterly inflation forecast remained initially unchanged from the October monetary policy committee meeting, but lower in the second half of 2026.
This is on account of stronger exchange rate assumptions and a favourable oil price outlook.
Instant PAYMENT System
Last year, the BoN said it would launch its planned instant payment system in late 2026 after it initially targeted an official launch last year.
The programme is designed to be accessible on any device, including non-smartphones, ensuring that everyone, including vendors, taxi drivers, pensioners and small business owners can use the programme.
Namclear is the authorised payment system operator, which will partner with the special purpose vehicle for the long-term operation of its instant payment solution.
The National Payments Corporation of India International will develop the instant payment programme, which will be used for the system.
Meanwhile, PwC will serve as the industry programme management office, with extensive experience in leading payment transformation programmes.
Economic growth
Real gross domestic product is expected to go up to 3.8% in 2026 from 3% in 2025.
This growth is expected to come from a rebound in agriculture as rainfall conditions improve, a sustained upturn in construction, electricity generation, and stronger output from the uranium sector.
For 2027, growth is expected at 4.3%.
New interbanking rates
Namibian banks will soon be changing the way they lend money to clients with the introduction of a new lending policy.
The change in the interbank rate will completely change the way interest rates on homes, cars, properties and all types of loans are charged.
Namibia will be moving away from the Windhoek Interbank Agreed Rates (Wibar), which are benchmark interest rates used in the Namibian financial market
However, the central bank is yet to announce what the new rate to be used will be.
The Wibar was introduced in 2011, which allowed banks to lend, depending on a set prime rate.
The prime rate is calculated by adding 3.5% to the repo rate, which is set by the BoN.
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Source: The Namibian
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