Namibia’s Microlending Market Surge 42% in One Year

Namibia’s microlending industry expanded sharply in 2024, with the number of regulated microlenders rising by 236 in a single year.

This raises important questions about access to credit, competition and the financial pressures facing borrowers.

According to the Namibia Financial Institutions Supervisory Authority (NAMFISA), the number of microlenders increased from 560 in 2023 to 796 by December 2024. This represents growth of approximately 42.1%, meaning that for every 10 microlenders recorded in 2023, the market had about four additional lenders by the end of 2024.

The expansion coincided with a substantial increase in lending activity. NAMFISA’s 2025 Annual Report recorded 700 393 newly issued loans in 2024, up 54.8% from 665 290 in 2023. The total value of loans disbursed increased by 44.9%, from approximately N$3.57 billion to N$5.17 billion.

Microlending provides access to relatively small loans, often over short periods, and can offer an alternative for people who struggle to obtain credit through traditional channels.

A growing number of providers could increase competition, widen access to financing and give consumers more options when unexpected expenses arise.

However, the increase in lending also raises questions about affordability, repayment obligations and the ability of borrowers to manage multiple loans.

The annual report shows that payday lenders accounted for 575,751 of the 700,393 new loans issued in 2024, representing approximately 82% of the total. The average payday loan amount rose from N$2,584 in 2023 to N$3,875 in 2024, an increase of about 50%.

The outstanding microlending loan book also grew by 12.8%, reaching N$8.1 billion at the end of 2024. This represents the value of loans still outstanding, rather than the total amount lent during the year.