Namibia’s private sector credit extension (PSCE) on a rolling 12-month basis stood at N$6.69 billion in July, with N$1.85 billion taken up by individuals and N$4.62 billion by corporates, according to IJG Securities.
IJG reported that total credit extended to the private sector fell by N$1.1 million in July, bringing the outstanding balance to N$120.29 billion.
The firm said PSCE growth held steady at 5.88% year-on-year, broadly unchanged from June and continuing at levels last recorded in February 2020.
“Corporates have been the primary driver of PSCE growth over the past twelve months, accounting for 69% of the N$6.69 billion issued over the period,” IJG said.
The firm noted that credit to individuals grew by 0.5% month-on-month and 2.7% year-on-year in July, largely supported by overdrafts which increased by 3.5% month-on-month, the highest since January 2024.
Mortgage loans to individuals grew by only 0.8% year-on-year, while month-on-month growth slowed to 0.2%. Other loans and advances rose by 0.7% month-on-month and 5.7% year-on-year, which IJG highlighted as a major contributor to annual growth.
“Credit extension to individuals remains subdued at 2.74%, trailing inflation. Mortgage lending by individuals is particularly weak, with growth of just 0.8% y/y,” IJG said.
On the corporate side, IJG reported that credit growth was flat month-on-month but climbed 10.07% year-on-year in July. The firm noted that while this was slightly below June’s 10.6%, it still represented the second-highest growth rate since December 2019.
According to IJG, mortgage loans to corporates grew by 1.4% month-on-month after four months of contraction, though the category was down 2.3% year-on-year.
Other loans and advances to corporates rose by 10.5% year-on-year, while instalment credit slowed to 18.8% year-on-year and overdrafts eased to 23.4%.
“On a year-on-year basis, PSCE grew by 5.9% y/y in July – a minute decrease from June. Despite the slowdown, this figure marks the second highest annual growth rate since January 2020,” IJG said.
The firm also highlighted that the liquidity position of commercial banks declined by N$274.98 million in July, falling from an average of N$6.07 billion in June to N$5.80 billion — the lowest level since September 2024.
IJG explained that the month-on-month reduction was primarily driven by the latent effects of corporate tax payments due at the end of June 2025.
