Credit extended rises to pre-Covid highs
Private sector credit extended (PSCE) has risen to its highest levels since the advent of the Covid-19 pandemic, the Bank of Namibia (BoN) said this week during the monetary policy committee meeting, held to announce a reduction in the repo rate by 25 basis points.
“The annual growth in PSCE has continued on a gradual recovery path, rising to a post-pandemic high of 5.8% in August 2025 and remaining above the 5.7% recorded in June 2025. Similarly, the improvement in credit to the private sector was observed in the year-to-date average growth rate, which stood at 4.9% in the first eight months of 2025, relative to 2% during the same period in 2024,” BoN governor Johannes !Gawaxab said when announcing the repo rate reduction.
“Overall, the improvement in PSCE was mainly driven by a stronger credit uptake by businesses, while households lagged,” he added.
Pivoting to the external sector, Namibia’s merchandise trade deficit narrowed by 16.1% to N$17.9 billion during the first eight months of 2025, relative to the corresponding period in the previous year.
“The improved trade deficit was on account of a faster increase in export earnings, especially from uranium and gold, relative to import payments during the period under review.”
Regarding Namibia’s reserves, !Gawaxab noted that there had been a decline.
“The stock of international reserves stood at N$54.7 billion at the end of September 2025, down from N$58.1 billion recorded at the end of July. The reduction in foreign reserves was mainly ascribed to elevated imports, foreign payments by the government, and a stronger exchange rate,” he said.
Despite the reduction, it remained sufficient to support the currency peg between Namibia and South Africa.
“This level of foreign reserves translates to an estimated import cover of 3.6 months, remaining adequate to sustain the currency peg between the Namibia Dollar and the South African Rand and meet the country’s international financial obligations,” !Gawaxab said.
“The annual growth in PSCE has continued on a gradual recovery path, rising to a post-pandemic high of 5.8% in August 2025 and remaining above the 5.7% recorded in June 2025. Similarly, the improvement in credit to the private sector was observed in the year-to-date average growth rate, which stood at 4.9% in the first eight months of 2025, relative to 2% during the same period in 2024,” BoN governor Johannes !Gawaxab said when announcing the repo rate reduction.
“Overall, the improvement in PSCE was mainly driven by a stronger credit uptake by businesses, while households lagged,” he added.
Pivoting to the external sector, Namibia’s merchandise trade deficit narrowed by 16.1% to N$17.9 billion during the first eight months of 2025, relative to the corresponding period in the previous year.
“The improved trade deficit was on account of a faster increase in export earnings, especially from uranium and gold, relative to import payments during the period under review.”
Regarding Namibia’s reserves, !Gawaxab noted that there had been a decline.
“The stock of international reserves stood at N$54.7 billion at the end of September 2025, down from N$58.1 billion recorded at the end of July. The reduction in foreign reserves was mainly ascribed to elevated imports, foreign payments by the government, and a stronger exchange rate,” he said.
Despite the reduction, it remained sufficient to support the currency peg between Namibia and South Africa.
“This level of foreign reserves translates to an estimated import cover of 3.6 months, remaining adequate to sustain the currency peg between the Namibia Dollar and the South African Rand and meet the country’s international financial obligations,” !Gawaxab said.
