Chamwe Kaira
Namibia’s stock of international reserves rose at the end of December 2025, supported mainly by net inflows of the South African rand and revaluation gains, the Bank of Namibia (BoN) has reported.
Official reserves increased by 4.9% month-on-month to N$51.6 billion.
The rise was driven by strong net rand inflows linked to portfolio investment, as well as favourable price movements in some fixed-income securities held by the central bank.
At this level, the international reserves were sufficient to cover an estimated 3.3 months of imports.
When oil and gas exploration and appraisal-related imports are excluded, import cover improves to 3.8 months.
Namibia’s banking industry saw a decline in cash balances during the same period.
Average cash balances fell by 5.2% to N$5.1 billion in December 2025 compared to the previous month. The decline was mainly linked to lower diamond sales proceeds.
Credit growth remained mixed. Mortgage lending continued to show weak performance.
Annual growth in mortgage credit contracted for the fourth consecutive month, falling by 0.1% in December, compared to a contraction of 0.5% in November.
Mortgage credit to businesses remained in negative territory for the fourteenth straight month since November 2024.
In contrast, mortgage lending to households increased slightly by 0.2% in December, following zero growth in November, reflecting improved demand in a lower interest rate environment.
Annual growth in installment sales and lease credit stayed strong but eased marginally.
Growth slowed to 18.5% in December from 18.9% in November, supported by continued demand from households and businesses.
Growth in other loans and advances also moderated. Annual growth declined to 6.6% in December from 7.0% in the previous month, due to lower borrowing by businesses and households.
Overdraft lending continued to weaken. Annual growth in overdraft credit declined for the sixth consecutive month to 4.3% in December, from 6.1% in November, as businesses reduced overdraft balances.
Household overdraft credit remained in contraction for the twelfth straight month.
Overall credit extended to businesses slowed further at the end of December.
Annual growth declined to 6.8% from 7.2% in November, reflecting lower demand and repayments by companies in the financial, fishing, and wholesale and retail trade sectors.
Caption
Net inflows of the South African rand and revaluation gains helped lift Namibia’s international reserves at the end of December 2025.
- Photo: Contributed
