The private sector credit extension increased to N$127.1 billion in August compared to July, driven by a larger uptake of loans in both the business and household sectors, according to the Bank of Namibia’s money and banking statistics.
The report highlighted the 5.4% annual growth as the highest figure recorded since September last year, an indication of improved demand.
Annual credit growth extended to the corporate sector stood at 5.9%, higher than 3.7% reported in July. The increase was primarily attributed to higher uptake in overdrafts, as well as other loans and advances by corporates in the real estate, mining, retail, fishing, transport and logistics, manufacturing and business services sectors.
The overall overdraft lending rose to 6.9% annually from 2.3%, mainly due to higher demand by the corporate sector, whose overdraft credit stood stood at 7.1% during the month under review relative to 0.8% in July.
Annual growth in other loans and advances stood at 4.7%, relative to a negative growth of 0.3% posted in July. The increase was attributed to higher uptake by households and corporates in the manufacturing, transport and logistics sectors.
Contributing further to the higher overall growth in PSCE was household credit whose growth inched higher to 4.8% from 4.6% recorded during the previous month. The slight uptick was attributed to an increase in growth of mortgage credit, instalment sale and leasing credit, as well as other loans and advances. Household mortgage credit stood at 2.8%, the highest level recorded since October 2023.
Meanwhile, growth in household overdraft credit slowed further to 6% from 8.9% in July, due to lower demand.
Growth in mortgage credit stood at 1.9%, a marginal increase from the 1.6% recorded in July, emanating mainly from an increase in uptake by households, which inched up to 2.8%. Meanwhile, the contraction in business mortgage credit growth widened slightly to 1.2% during the period under review, relative to 1.1% recorded in July.
Annual growth in instalment sale and leasing credit rose moderately to 18.7% during the month under review, relative to 18.6% in July 2026. The slight rise was on account of increased uptake by households during the month under review.
