Namibia’s corporate debt stock increased by N$1 billion in March 2025, marking the fastest pace of business credit growth since December 2019, as demand for liquidity and capital investment surged across key sectors.
According to the latest data released by Simonis Storm, corporate borrowing rose by 8.2% year-on-year (y/y), up from 5.9% in February.
Junior Economist at Simonis Storm, Almandro Jansen, attributed the sharp rise in credit uptake to increased activity in mining, energy, tourism, manufacturing, and financial services — signalling a broad-based recovery in the Namibian economy.
“Installment and leasing credit grew by 20.6% y/y, up slightly from February’s 20.4%, but still indicative of strong investment activity, particularly in transport, mining, and equipment-related sectors,” Jansen said.
He noted that the elevated demand reflected capital expenditure by firms upgrading vehicle fleets and acquiring durable assets.
“Other loans and advances surged to 14.8% y/y in March, up from 9.6% in February, with demand concentrated in manufacturing and energy. This suggests strategic credit usage for project financing and working capital needs,” he added.
After more than a year of contraction, overdraft facilities also showed signs of recovery, increasing by 4.6% y/y in March compared to just 0.3% in February.
“The return to growth after over a year of contraction signals improved operational cash flow requirements and a tentative return to flexible credit lines,” Jansen said.
However, commercial mortgage lending continued to weaken, slipping deeper into negative territory.
“This indicates that the commercial property market remains weak, with businesses continuing to delay large real estate investments in favour of more liquid or short-term financing structures,” Jansen said.
On the household side, Namibia’s debt stock reached N$129 billion in March 2025, reflecting a month-on-month increase of N$23.8 million. Household credit rose by 2.8% y/y, slightly higher than the 2.6% recorded in February.
Despite this improvement, mortgage credit growth slowed to 0.6% y/y, reversing the modest momentum seen earlier in the year.
“This stagnation highlights persistent affordability challenges amid elevated home prices and weak wage growth,” said Jansen.
Unsecured borrowing remained stable, with other loans and advances maintaining 7.9% y/y growth in March.
“The sustained growth points to continued reliance on flexible credit facilities, particularly among middle-income households seeking accessible financing options,” Jansen said.
Short-term borrowing patterns also reflected changing household liquidity needs. Overdraft facilities for households posted a -12.5% y/y contraction in March, continuing a recovery from earlier declines.
“Installment and leasing credit stood firm at 14.5% y/y, rising from 12.3% in February. The strength of this segment is underpinned by high vehicle sales and growing consumer demand for durables,” Jansen said.
Overall, Namibia’s Private Sector Credit Extension (PSCE) rose to 5.0% y/y in March, up from 3.9% in February, driven largely by strong corporate credit uptake and steady gains in household borrowing.
