Entrepo Finance (Pty) Ltd, Letshego Micro Financial Services (Namibia) (Pty) Ltd and Old Mutual Finance control 80.5% of Namibia’s term lending market, valued at N$6.9 billion.
Data from the Namibia Financial Institutions Supervisory Authority (NAMFISA) shows the total microlending loan book stood at N$7.5 billion at the end of the fourth quarter of 2025, with 958 microlenders active during the period. Term lending, comprising instalment-based loans, accounted for 91.0% of the market.
Entrepo Finance holds the largest share of the term lending segment at 29.5%, followed closely by Letshego at 29.4%, while Old Mutual Finance accounts for 21.6%.
Despite its dominance, the segment is contracting. Term lending declined by 4.1% quarter-on-quarter and 9.1% year-on-year, reflecting weakening activity among lenders.
Overall, the microlending loan book fell by 3.0% from N$7.8 billion in the previous quarter and declined by 6.5% compared to the same period last year.
In contrast, payday lending continues to expand. The segment, which accounts for 9.0% of the market or N$621 million, grew by 11.0% over the period, partially offsetting the decline in term lending.
Express Credit Cash Advance (Pty) Ltd dominates the payday lending segment with a 68.9% market share, followed by Janeel Financial Services CC at 6.0% and Pause Financial Services CC at 3.0%.
NAMFISA said lending activity remained relatively resilient despite the contraction in overall disbursements.
“Lending activity remained relatively resilient, with the number of new loans increasing marginally during the quarter, largely supported by growth in payday lending transactions despite the overall decline in disbursements and loan book value,” the regulator said.
The number of household borrowers rose marginally by 0.3% to 279,594 clients, representing a 16.3% increase year-on-year, driven mainly by growth in payday lending.
Payday borrowers increased by 13.6% to 120,899 clients, while term lending clients declined by 8.0% to 158,695. Despite the drop, term borrowers still account for the majority share at 56.8%.
Loan sizes also reflected a shift in borrowing patterns. The average term loan fell by 29.2% to N$23,495, while the average payday loan increased by 3.8% to N$3,906, indicating growing reliance on smaller, short-term credit.
NAMFISA noted that market concentration remains high across both lending segments, with a small number of players continuing to dominate the sector.
