# Namibian economic growth and credit slowdown

> Live situation record from CLSTR: https://clstr.news/situations/namibian-economic-growth-and-credit-slowdown
> Updated: 2026-09-02T02:19:57.000Z. Sources: 2. Developments: 2.

The Namibian economy has faced downward pressure characterized by lowered growth forecasts and slowing credit expansion. In August 2026, the Bank of Namibia maintained its repo rate at 6.75% to protect international reserves and the currency peg with the South African rand. This decision followed a reduction in the 2026 economic growth forecast from 2.6% to 2.1%, driven by subdued activity in the mining, manufacturing, electricity, and transport sectors.

By September 2026, private sector credit extension showed signs of deceleration, falling to an annual growth rate of 4.2% in July. This slowdown was largely attributed to the corporate sector, where business credit growth slowed to 3.7% due to declines in overdrafts and various loans across the manufacturing, fishing, agriculture, and energy industries. While household credit remained resilient with a slight increase to 4.6%, overall credit growth outlooks have been lowered.

## Timeline

### 2026-09-02: Namibia private sector credit growth slows due to corporate sector

Namibia's private sector credit growth slowed to 4.2% in July as corporate borrowing declined, despite a marginal increase in household credit and mortgage uptake.

2 sources. https://clstr.news/cluster/namibia-private-sector-credit-growth-slows-due-to-corporate-sector

### 2026-08-13: Bank of Namibia holds repo rate at 6.75% amid lowered growth outlook

The Bank of Namibia held its repo rate at 6.75% and lowered its 2026 growth forecast to 2.1% due to weak activity in mining and manufacturing.

2 sources. https://clstr.news/cluster/bank-of-namibia-holds-repo-rate-at-675-amid-lowered-growth-outlook

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Cite as: Namibian economic growth and credit slowdown. CLSTR, https://clstr.news/situations/namibian-economic-growth-and-credit-slowdown