Africa-Press – Namibia. NAMIBIANS borrowed N$808.2 million or 0.7% more month-on-month (m/m) in December, bringing the cumulative credit outstanding to N$122.3 billion.
According to a private sector credit extension (PSCE) analysis by IJG Securities, credit growth edged down to 4.4% y/y in December, compared to 4.5% in November.
“The moderation in PSCE growth stemmed from lower demand and net repayments from businesses,” say the analysts.
Credit extended to individuals increased by 0.6% m/m and 2.7% y/y in December, growing at a slightly faster rate than the 2.5% y/y increase recorded in November.
“On a monthly basis, this marks the second highest growth rate for 2025,” IJG says, adding that the m/m growth has mostly been driven by an increase in mortgage loans which grew by 0.3% m/m, following a 0.02% m/m contraction in November.
On an annual basis, mortgage loans grew by a subdued 0.2% while ‘other loans and advances’ consisting of term and personal loans and credit card debt recorded moderate annual growth of 7.1% y/y, mostly in-line with the 7.2% growth recorded during the prior month.
“Overdraft credit increased by 4% m/m in December, following a 2.8% contraction recorded in November. On an annual basis, overdrafts remained subdued, contracting by 10.7% y/y.
“Growth in credit extended to individuals of 2.7% remains below the current inflation rate of 3.2% y/y,” says IJG.
Meanwhile, the annual growth in credit extended to corporates moderated at the end of December 2025.
The analysts say corporate credit growth slowed to 6.8% y/y, down from 7.2% recorded in November 2025. On a monthly basis, credit extended to corporates rose by 0.8%, down from the 1.2% m/m growth recorded in the prior month.
According to the Bank of Namibia (BoN), this is attributed to lower demand and repayments by corporates in the financial, fishing and wholesale and retail trade sectors.
“On an annual basis, mortgage loans contracted by 0.9% y/y, while both ‘other loans and advances’ and overdraft facilities recorded growth, increasing by 6.3% y/y and 8.9% y/y, respectively,” note the analysts.
They say the overall liquidity position of commercial banks declined to an average of N$5.16 billion in December, reflecting a 4.2% m/m contraction from the November average of N$5.39 billion.
According to BoN, this was attributable to a decline in diamond sales proceeds during the month under review.
International reserves increased further to N$51.6 billion in December, representing a 4.9% m/m rise from the N$49.2 billion recorded at the end of November.
“This level of reserves translated to an estimated 3.3 months of import cover, and 3.8 months when excluding oil and gas exploration and appraisal related imports,” says IJG Securities.
– Email: [email protected]
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch.
It’s an essential way to stay informed. Subscribe and join our newsletter community.
For More News And Analysis About Namibia Follow Africa-Press
