Namibia’s commercial banks have lowered their lending rates in line with a directive from the Bank of Namibia (BoN) to narrow the margin between the repo rate and lending rates.
Bank Windhoek, Nedbank, Standard Bank and FNB Namibia have reduced their prime lending rate from 10.50% to 10.375%, while home loan rates have been cut from 11.50% to 11.375%.
According to the BoN directive, banks were required to implement a 0.125% reduction by 30 September 2025, followed by a further 0.125% cut by 31 December 2025.
The directive also compels banks to confirm compliance in writing, with acknowledgements signed by their chief executives.
The central bank said the move is aimed at lowering Namibia’s historically high interest rate margins and making credit more affordable for households and businesses.
By reducing borrowing costs, the measure is expected to stimulate economic activity, ease financial pressures on consumers and support investment.
“This is a significant and necessary step towards ensuring a more equitable and inclusive financial system. At a time when concerns over the cost of financial services are growing, these actions reflect the sector’s willingness to contribute constructively to national economic objectives and to address public concerns,” said BoN Governor Johannes !Gawaxab.
Namibia has maintained a wider spread of 3.75 percentage points between the repo and prime rates since 2010, compared to 3.50 percentage points in South Africa, Lesotho and Eswatini, which form part of the Common Monetary Area (CMA).
The current reduction will bring Namibia more in line with its CMA peers, creating a more predictable and consistent banking environment across the region.
