Namibian businesses and individuals have racked up debt of over N$110.5 billion as of December 2022, according to the latest Private Sector Credit (PSCE) figures.
The data shows that individuals owe over N$64.7 billion, while businesses owe over N$45.8 billion.
According to IJG, the growth rate of individual credit has increased by 4.75% year-on-year, while credit extended to the private sector has grown by 3.50%.
“The annual growth rate of this line item has been ticking up for four consecutive months, with the December growth rate being the highest since June 2020. Overdraft facilities to individuals grew by 1.9% m/m but fell 0.4% y/y,” says IJG.
“On an annual basis, corporate credit grew by 3.5% y/y in 2022, following contractions in both 2020 and 2021.”
The data shows that mortgages account for N$58.7 billion of the debt and saw a 1.12% increase year-on-year and a 0.16% month-on-month increase.
Other loans and advances account for N$28.6 billion, while overdrafts and credit instalments account for N$12.4 billion and N$10.9 billion, respectively.
“Overall, PSCE growth rebounded in 2022, following two years of very subdued growth,” says IJG.
“The normalised 12-month issuance of N$4.10 billion is nearly three times higher than the issuance of 2021, and one-and-a-half times higher than that of 2020.”
IJG adds, “Corporate credit issuance was encouragingly positive in 2022, after two years of corporates delevering their balance sheets. The 12 months also saw individuals taking up N$1.66 billion more than they did in 2021.”
The overall liquidity position of the commercial banks improved in December 2022, according to IJG, rising by N$1.40 billion to an average of N$5.84 billion.
“The BoN ascribed the increase to a rise in diamond sales coupled with portfolio rebalancing. The strong liquidity position meant that the repo balance stood at zero at the end of the month,” says IJG.
