Namibia private sector credit growth slows due to corporate sector

Private sector credit extension (PSCE) in Namibia moderated to N$125.1 billion at the end of July, with annual growth slowing to 4.2% from 4.5% in June. This deceleration was primarily driven by subdued loan uptake and net repayments within the corporate sector.

Business credit growth slowed to 3.7%, influenced by declines in overdrafts, mortgages, and other loans and advances across sectors including manufacturing, fishing, agriculture, and energy. Specifically, the category of ‘other loans and advances’ saw a significant contraction, falling to -3.7% annual growth after previously showing positive movement in June.

In contrast, household credit showed resilience, increasing slightly to 4.6% from 4.5% in June. This growth was supported by higher uptake in mortgage credit and instalment sale and leasing credit. While household lending helped offset some corporate contraction, research firm Simonis Storm has lowered its outlook for headline PSCE growth, forecasting a range of 3.5% to 4.5% through the fourth quarter of 2026.