Chamwe Kaira
Namibia’s international reserves increased to N$51.9 billion at the end of January 2026, supported by inflows from the Southern African Customs Union.
The Bank of Namibia reported in its latest money and banking statistics that the official stock of reserves rose by 0.6% month-on-month. The increase was mainly driven by SACU receipts.
At this level, reserves covered an estimated 3.3 months of imports. When excluding oil and gas exploration and appraisal imports, the cover stood at 3.8 months. The bank said the reserves were equal to 9.6 times the currency in circulation. They remain sufficient to maintain the currency peg between the Namibian dollar and the South African rand and to meet short-term international obligations.
While reserves improved, liquidity in the banking sector declined. Market cash balances fell by 11.8% month-on-month to an average of N$4.5 billion in January.
Broad money supply growth picked up during the month. Annual growth in M2 rose to 7.6% at the end of January, up from 6.5% in December 2025. The bank said M2 growth remains strong and continues to outpace inflation.
Private sector credit extension slowed further. Annual growth in PSCE eased to 4.2% in January from 4.4% in December. The decline reflected lower uptake and net repayments by corporates, while credit to households increased.
Loans to businesses grew by 5.8% in January, down from 6.8% in December. The slowdown was linked to weaker demand and net repayments in the manufacturing, financial and telecommunications sectors.
On the household side, credit growth rose to 3% in January from 2.7% in December. The increase came from higher demand for mortgage loans and overdrafts.
Growth in other loans and advances slowed for the fourth consecutive month. It fell to 4.7% in January from 6.6% in December, as demand from both businesses and households remained muted.
Mortgage credit moved back into positive territory. Annual growth reached 0.1% in January, compared to negative 0.1% in December. Household mortgage credit rose to 0.3% from 0.2%, supported by demand in a lower interest rate environment. Mortgage credit to businesses remained negative for the fifteenth straight month.
Caption
The increase in international reserves was predominantly underpinned by SACU receipts.
– Photo: Contributed
