Household Credit Growth Rises to 4.5% in June

By: Elizabeth Naftal

Namibia has recorded an increase in household credit, which grew by 4.5% year-on-year at the end of June 2026, compared to 2.4% during the second quarter of 2025.

This was driven by higher uptake of mortgage loans and overdraft credit, according to the Bank of Namibia’s September 2026 Quarterly Bulletin.

The report noted that household credit growth also increased from 4.1% in the first quarter of 2026, showing a continued rise in borrowing by households over the period.

According to the Bank of Namibia (BoN), the increase in household credit was reflected in higher uptake of mortgage loans and overdraft credit, both on a quarterly and annual basis.

The growth in household borrowing also contributed to a slight increase in overall private sector credit extension, which rose to 4.5% in the second quarter of 2026 from 4.3% in the previous quarter, the bulletin reported.

BoN noted that the increase in private sector credit growth was supported by marginally higher borrowing from both households and businesses, particularly through overdraft lending.

Meanwhile, overdraft lending recorded growth of 4.1% in the second quarter of 2026, compared with a contraction of 2.0% in the preceding quarter, according to the report.

The bulletin further noted that growth in other loans and advances, as well as instalment sale and leasing credit, declined during the quarter, while mortgage credit growth remained steady.

Mortgage credit continued to account for the largest share of total private sector credit, representing 47.7% in the quarter ending June 2026, although its share declined by 0.8 percentage points from the previous quarter, BoN reported.