Select Page

Private sector credit increases by just 1% in 2021

Private sector credit increases by just 1% in 2021

In 2021, private sector credit increased by just 1% to N$1.05 billion over 12 months, following an already slow increase of 1.6% in 2020.

This is according to the Bank of Namibia’s, which indicates that of this N$1.05 billion, individuals took up N$1.27 billion, while corporates reduced their borrowings by N$48.5 million and the non-resident private sector repaid N$173.3 million of their borrowings.

On a year-on-year basis, credit extended to individuals rose by 2.1% in December 2021. Overdraft facilities to individuals declined 3.3% on an annual basis. Other loans and advances (consisting of credit card debt, personal- and term loans) rose by 0.2% and 2.8% yearly. Growth in mortgage loans to individuals has been slowing since April 2021, but increasing by 2.6% yearly.

On both a monthly and annual basis credit extended to corporates contracted for a second consecutive month, decreasing by 0.11% yearly, as corporates continued to de-lever their balance sheets in 2021.

Overdrafts in corporates declined by 13.1% yearly, while mortgage loans to corporates rose by 5.8%. Instalment credit growth remained subdued increasing by 5.6%, although it is from a very low base. Other loans and advances rose by 3.1% as of December 2021.


About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys