(3 Minutes Read)
This shift is underpinned by stronger demand in key sectors such as energy, tourism, manufacturing, and financial services, which have driven a N$1 billion month-on-month increase in corporate debt stock.
Namibia’s corporate sector has recorded a milestone in its post-pandemic recovery, with business overdraft facilities posting positive annual growth for the first time in over a year, signalling renewed confidence among firms amid broader credit expansion. According to the latest Private Sector Credit
Extension (PSCE) report by Simonis Storm, overdraft credit for businesses grew by 4.6% year-on-year (y/y) in March 2025, ending a 13-month contraction streak. This turnaround, alongside an 8.2% y/y surge in overall corporate credit—the fastest pace since December 2019—reflects tentative optimism as Namibia’s economy navigates global headwinds and domestic structural challenges.
The rebound in overdrafts, often used for short-term operational liquidity, points to improved cash flow management and a gradual easing of risk aversion among businesses. This shift is underpinned by stronger demand in key sectors such as energy, tourism, manufacturing, and financial services, which have driven a N$1 billion month-on-month increase in corporate debt stock.
Instalment and leasing credit, a bellwether for capital expenditure, soared by 26.6% y/y, reflecting investments in transport fleets, mining equipment, and durable assets.
Read Also:
However, the commercial real estate market remains a weak spot, with business mortgage credit contracting by 2.3% y/y. Firms continue to prioritise flexible, short-term financing over long-term property investments, a trend analysts attribute to lingering global uncertainty and elevated import costs.
Arabic
Chinese (Simplified)
Danish
English
French
Hindi
Italian
Norwegian
Portuguese
Russian
Spanish
Swedish