Corporates drive credit uptake in November

Credit uptake increased slightly in November, compared to the growth registered for the same period in November 2022, the Bank of Namibia’s (BoN)’s Money and Banking Statistics report indicated. “Private Sector Credit Extension (PSCE) growth inched higher to 2.0% year-on-year (y-o-y) in November from 1.8% y-o-y in October. The report indicates that credit extended to businesses grew by 0.7% y-o-y in November, ending a streak of seven consecutive contractions,” PSG said in its analysis of credit figures following the release of the report. The uptick in credit extended was mainly driven by corporates, while credit uptake by households slowed, PSG noted. “The slight improvement is attributed to an increase in demand from corporates in the services, tourism as well as the wholesale and retail trade sector. Credit uptake by households slowed to 2.9% y-o-y in November from 4.2% y-o-y logged in the prior month, attributed to a decrease in the demand for overdraft credit, other loans and advances as well as mortgage credit categories,” PSG said. PSG was expecting an uptick in credit demand on the back of improved economic growth, and a moderation in the repo rate. “Once consumers and businesses are confident that there will be steady economic growth and a moderation in the repo rate, we expect to see an uptick in credit demand. This could subsequently boost economic activity and employment creation,” PSG said. PSG was confident that the repo rate would remain unchanged largely for the first half of the year. The repo rate was expected to ease towards the second half of the year, it added. “We hold the view that the BoN will keep rates unchanged in the first half of 2024 and will only start cutting rates in the second half of 2024. Furthermore, we forecast real Gross Domestic Product growth will moderate from 5.8% in 2023 to 3.1% in 2024,” PSG said.

Corporates drive credit uptake in November

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Namibian Sun 2025-06-02

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Corporates drive credit uptake in November

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Namibian Sun 2025-06-02

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