Chamwe Kaira
The Bank of Namibia’s stock of international reserves rose by 6.6% at the end of April to N$63.6 billion. The increase was mainly driven by Southern African Customs Union (SACU) receipts.
This level of reserves covers 4.2 months of imports. When oil exploration and appraisal activities, mostly funded from abroad, are excluded, import cover stands at 5.1 months.
Broad money (M2) grew by 11.6% in April, up from 10.1% in March. The growth in M2 came from an increase in domestic claims, which rose by 9.8%, compared to 9.2% the previous month.
“The rise in domestic claims growth was mainly supported by an increase in net claims on the central government”
Further, the higher M2 growth was also evident in the higher growth for currency outside depository corporations and transferable (demand) deposits, whereas growth in other deposits declined during the month under review,” the central bank said.
Private Sector Credit Extension (PSCE) growth slowed to 4.5% in April, down from 5% in March.
“The decrease in PSCE growth was reflected in credit advanced to both the corporate and household sectors during the period under review. The slower growth in PSCE was in the form of a lower uptake in mortgage credit, other loans and advances and installment sales credit.”
Credit extended to businesses grew by 7.1%, down from 8.2% the previous month. The drop was due to higher net repayments by businesses, mostly in other loans and advances.
Credit to households grew by 2.7% in April, slightly down from 2.8% in March.
“The decrease was mainly observed in other loans and advances and overdraft categories, whereas growth in mortgage loans and instalment and leasing credit edged upwards.”
Overdraft lending grew by 2% in April, up from 0.8% in March. The increase came from higher borrowing by the corporate sector.
“On the other hand, overdraft lending to the household sector remained in negative territory.”
Growth in other loans and advances slowed to 9.5%, from 12% the month before. This was due to lower household demand and repayments from businesses.
Mortgage credit contracted by 0.1% in April, down from 0% growth in March. The fall came from weak demand by both businesses and households.
Commercial banks’ cash holdings increased by N$529.8 million in April to N$9.9 billion. This was due to bond redemptions, coupon payments, and proceeds from diamond sales. The April 2025 figure is the highest since April 2023, the central bank said.
