Namibian households borrowed N$438.7 million more in July than they did in June 2026, bringing the total credit for individuals to N$72.74 billion.
According to a report by economic analysts IJG Securities, this annual household credit growth grew to 4.6% year on year (y/y) from 4.5% in June.
“This extended the strongest run of annual expansion since August 2023,” the report notes.
According to IJG Securities, household mortgage lending continued to gain momentum, with the outstanding balance increasing by N$238.5 million (0.5% month on month (m/m)) to N$47.12 billion and annual growth quickening to 2.4% y/y, the fastest pace since December 2023.
“Other loans and advances rose by N$108.1 million (0.8% m/m) to N$13.39 billion, with annual growth edging up to 5.0% y/y from 4.9% y/y, interrupting the gradual moderation observed since October 2025,” the analysts report.
Instalment sale and leasing credit increased by N$88.2 million (0.9% m/m) to N$9.69 billion, although annual growth eased marginally to 14.6% y/y from 14.8% y/y in June, continuing to indicate resilient demand for vehicle and asset finance.
The analysts note that household overdraft balances were broadly unchanged, rising by N$4.0 million (0.2% m/m) to N$2.54 billion following the net repayments recorded in June.
Meanwhile, credit extended to corporates declined by N$778.7 million or 1.5% m/m in July, reducing the outstanding corporate credit balance to N$52.41 billion.
“Consequently, annual corporate credit growth eased to 3.7% y/y from 4.5% y/y in June,” the analysts say.
Citing the Bank of Namibia, IJG Securities says the moderation was on account of lower uptake and net repayments in overdrafts, mortgages, instalment and leasing, as well as other loans and advances by corporates in the manufacturing, fishing, agriculture, wholesale and retail trade, financial services, and energy, oil and petroleum sectors.
Other loans and advances accounted for the bulk of the monthly decline, falling by N$1.79 billion or 8.5% m/m to N$19.25 billion and fully reversing the previous month’s rebound, with annual growth swinging to a contraction of 3.7% y/y from growth of 2.5% y/y in June.
The analysts observe that corporate overdraft balances declined by N$212.4 million (2.0% m/m) to N$10.24 billion, with annual growth easing to 0.8% y/y from 2.2% y/y.
Instalment and leasing credit was little changed, rising by N$20.4 million to N$8.69 billion, while annual growth moderated to 23.4% y/y from 24.4% y/y, remaining comfortably the fastest-growing corporate credit category.
Corporate mortgage lending was the exception to the broader softening, with the outstanding balance increasing by N$1.20 billion or 9.2% m/m to N$14.23 billion and annual growth returning to 6.5% y/y from a contraction of 1.1% y/y in June, the strongest pace since September 2022.
The analysts say the stock of international reserves increased by N$1.62 billion to N$58.04 billion at the end of July, up from N$56.42 billion in June, providing an estimated 3.6 months of import cover or 4.0 months excluding oil and gas-related imports.
