Households, businesses take up more credit in September

Households and businesses took up more credit in September according to the latest private sector credit extension figures provided by the Bank of Namibia, rising 2.1% on a monthly basis, PSG Konsult said. "Private sector credit extension (PSCE) growth rose to 3% year-on-year (y/y) in September from 2.1% y/y in August. The Bank of Namibia's (BoN) latest Money and Banking Statistics Report indicates that credit extended to businesses increased by 3.3% y/y in September, up from 2.1% y/y recorded in August. According to the BoN, the uptick in business loans was observed in all categories. Meanwhile, the growth in credit extended to households rose to 2.9% y/y from 2.1% y/y in August, with the increase mainly observed in installment sales and leasing and other loans and advances," PSG said. PSG also noted that broad money supply accelerated by 9.8% m/m. "Looking at the monetary aggregates, growth in the broad money supply accelerated to 9.8% y/y in September from 7.8% y/y in August. The increase in domestic claims supported the growth in broad money supply. The stock of foreign exchange reserves declined by 3.7% month-on-month (m/m) to N$57.1 billion at the end of September, which the central bank attributes to foreign currency withdrawals and net commercial bank outflows. This level of foreign reserves provides import cover for 3.9 months – above the international benchmark of three months," it said. "The small jump in the credit and monetary aggregate growth figures can partly be attributed to base effects from the monthly contraction in domestic claims in September 2023. Credit and money supply growth figures remain well below long-term averages, foreign reserves remain adequate, and headline inflation has moderated to below 4.0% y/y. We believe these factors provide scope for the BoN to cut interest rates by another 25 basis points (bps) in December, following the South African Reserve Bank's anticipated 25-bps cut in November," it added.

Households, businesses take up more credit in September

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Namibian Sun 2025-05-02

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Households, businesses take up more credit in September

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Namibian Sun 2025-05-02

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