Total credit extended to Namibia’s private sector increased by N$558.9 million in August, bringing the overall stock to N$120.85 billion, according to IJG Securities.
“Private sector credit extension rose by 6.04% year-on-year in August, compared to 5.88% in July. Growth was recorded across all categories of credit except overdrafts,” IJG stated.
Mortgage borrowing by individuals remained subdued, with growth of just 0.8% year-on-year. Household overdraft credit contracted for the eighth consecutive month, reflecting weaker demand.
“Over the past twelve months, N$1.91 billion worth of credit was extended to individuals, while N$4.76 billion was extended to corporates,” IJG said.
Credit to individuals grew by 0.3% month-on-month and 2.8% year-on-year in August, mainly driven by instalment credit, which expanded by 0.7% month-on-month and 15.5% year-on-year, supported by higher vehicle sales.
“Other loans and advances to individuals, including term loans, personal loans and credit card debt, increased by 0.4% month-on-month and 5.7% year-on-year, making it a key driver of annual growth,” IJG noted.
Credit to corporates in Namibia continued to grow strongly, rising by 10.3% year-on-year in August, up from 10.1% in July. IJG said this represents the second-highest annual growth rate since December 2019.
“Other loans and advances to corporates grew by 1.7% month-on-month and 11.8% year-on-year, the fastest pace in four months. Mortgage loans to corporates remained weak, contracting by 2.3% year-on-year,” IJG said.
Corporate overdrafts fell by 1.4% month-on-month but were up 20.9% year-on-year, while instalment credit to corporates rose by 19.9% year-on-year.
