Namibians borrowed N$1.4 billion through microlenders in the third quarter of 2025, reflecting an 8.1% quarter-on-quarter decline but a 26.1% increase year on year, according to the Namibia Financial Institutions Supervisory Authority (NAMFISA).
The contraction was driven mainly by weaker term lending activity. Term lenders recorded a 13.9% decline in disbursements to N$774.1 million, while payday lenders posted a marginal increase of 0.4% to N$615.3 million.
NAMFISA said term lenders accounted for 56.0% of total disbursements during the quarter, with payday lenders contributing the remaining 44.0%.
The total microlending loan book remained broadly stable, declining by 0.1% quarter on quarter to N$7.8 billion, while increasing by 7.2% compared with the same period last year.
“Term lenders, representing 92.0% of the loan book, saw their portfolios ease by 0.5% to N$7.2 billion, but remained 5.0% higher than a year earlier,” the authority said.
Payday lenders continued to expand, with the value of their loan book increasing by 4.3% quarter on quarter to N$595.3 million and by 43.1% year on year. NAMFISA said the growth points to sustained demand for short-term credit during the period.
Average loan values showed mixed trends. The average term loan remained steady at N$33,183, representing an 18.2% increase year on year. In contrast, the average payday loan declined by 6.4% to N$3,762, although it was still 9.8% higher than a year earlier.
NAMFISA also reported strong concentration in both lending segments. Express Credit Cash Advance dominated payday lending, holding a 67.2% share of the loan book, while Entrepo Finance and Letshego Micro Financial Services jointly accounted for more than 60% of the term lending market.
The number of microlending clients rose sharply during the quarter, increasing by 15.5% quarter on quarter and 13.3% year on year to 278,841 borrowers.
“Term lending clients increased by 24.5% to 172,393, while payday lending clients rose by 3.4% to 106,448, underscoring continued reliance on microlending despite softer quarterly disbursements,” NAMFISA said.
