WINDHOEK, Nov. 4 — Namibia’s credit growth surged to its strongest level since 2020 in September, highlighting economic resilience and investor confidence as the country prepared to repay its 750 million U.S. dollar Eurobond, said research firm Simonis Storm Securities in its latest report released Tuesday.
Private sector credit extension rose 5.9 percent year-on-year, up from 5.8 percent in August, marking the fastest expansion since early 2020, the report said, attributing the steady recovery to lower interest rates and improving liquidity across the financial system.
According to the report, corporate borrowing grew by 9.5 percent due to stronger demand in the agriculture, mining, and manufacturing sectors.
Meanwhile, installment and leasing credit surged by more than 22 percent as firms invested in vehicles, machinery, and equipment, while overdraft borrowing moderated as companies shifted toward long-term financing.
Household credit rose 3.4 percent, driven by higher demand for vehicle and personal loans. However, mortgage lending remained subdued at 0.4 percent, reflecting high property prices and limited affordability.
Banking sector liquidity improved to 7.3 billion Namibian dollars (about 419 million U.S. dollars) in September, bolstered by diamond export receipts, tax inflows, and government spending, the report said.
While the Eurobond repayment may temporarily tighten liquidity, Namibia’s financial position remains sound. The successful redemption is expected to bolster market confidence and reduce refinancing risks, reinforcing the country’s reputation for prudent fiscal and monetary management, the research firm said. (Xinhua)
