Namibian households' total credit reaches N$72.7 billion in July

According to IJG Securities, annual household credit growth rose to 4.6% year on year, extending the strongest run of annual expansion since August 2023. Household mortgage lending gained momentum, with the outstanding balance increasing by N$238.5 million to N$47.12 billion, and annual growth quickening to 2.4% year on year, the fastest pace since December 2023. Other loans and advances rose by N$108.1 million to N$13.39 billion, with annual growth edging up to 5.0% year on year.

Instalment sale and leasing credit increased by N$88.2 million to N$9.69 billion, indicating resilient demand for vehicle and asset finance, though annual growth marginally eased to 14.6% year on year. Household overdraft balances were broadly unchanged, rising by N$4.0 million to N$2.54 billion. In contrast, credit extended to corporates declined by N$778.7 million or 1.5% month on month in July, reducing the outstanding corporate credit balance to N$52.41 billion.

This led to annual corporate credit growth easing to 3.7% year on year from 4.5% year on year in June. The moderation was attributed to lower uptake and net repayments in various categories by corporates in sectors such as manufacturing, fishing, agriculture, wholesale and retail trade, financial services, and energy, oil and petroleum. Corporate mortgage lending was an exception, wi