CHAMWE KAIRA
The Bank of Namibia’s stock of international reserves decreased at the end of March and stood at N$59.7 billion, reflecting a month-on-month decrease of 7.4%.
The central bank stated that the government’s rising imports and foreign payments primarily drove the monthly decrease in reserves.
This level of international reserves translated into 3.9 months of import cover.
When excluding oil exploration and appraisal activities, which are mainly financed from abroad, the import cover stood at 4.8 months of imports, the central bank said.
Cash balances in the overall banking industry remained robust at N$9.4 billion in March 2025, relative to N$9.9 billion recorded in February 2025. The decrease was mainly attributable to outflows for foreign payments during the review period.
Annual growth in mortgage credit recorded zero growth in March relative to the 0.5% growth recorded in February.
Growth in mortgage credit remains relatively subdued, resulting from lower uptake by both households and businesses.
Annual growth in installment sales and lease credits rose in March. Growth in instalment sales and leasing credit rose to 17.1% in March compared to 15.7% in the previous month.
This growth was supported by increased uptake by both businesses and households, the central bank said.
Growth in other loans and advances increased in March. The annual growth in other loans and advances stood at 12% in March, higher than the 8.9% recorded in February.
“The increase was due to uptake by corporations in the manufacturing and energy sectors,” the central bank said.
Growth in overdraft lending recorded an increase in March. The average growth stood at 0.8 per cent in March, following a contraction that lasted for 13 consecutive months, since February 2024, as a result of higher net repayments by businesses.
“The positive growth emanated from increased uptake by businesses in the mining and financial sectors during the review period.”
Growth in household credit inched higher in March. The annual growth in credit extended to households stood at 2.8% in March, relative to 2.6% in February.
“The slight uptick in growth emanated from increased uptake in the form of instalment sales and leasing credit.”
Annual growth in business credit reached its pre-pandemic levels in March, with credit extended to businesses growing by 8.2% in March, relative to 5.9% recorded in February.
“This is the highest annual growth recorded for business credit since December 2019 and was mainly attributed to uptake in the categories of other loans and advances and overdrafts, as well as instalment and leasing by corporations in the mining, energy, tourism, manufacturing, and financial sectors.”
