CHAMWE KAIRA
The Bank of Namibia’s stock of international reserves increased at the end of January and rose to N$64.3 billion, reflecting a month-on-month increase of 2.1%.
The monthly increase in reserves was predominantly driven by inflows of N$7 billion from SACU. This level of international reserves translates into 4.2 months of import cover.
When excluding oil exploration and appraisal activities, which are mainly financed from abroad, it stood at 5.2 months of import cover at the end of January, the central bank stated.
Banking industry cash holdings increased in January, with cash balances within the banking industry increasing to N$8.5 billion at the end of January, from N$8.3 billion recorded in December 2024.
The central bank said the increase was mainly supported by coupon payments injected into the market and higher diamond sales proceeds recorded during the period under review.
Growth in mortgage credit stood at 0.3% in January, lower than the growth of 0.6% recorded in December 2024. The sluggish growth in mortgage credit was as a result of lower uptake by both households and businesses during the review period, the central bank said.
Growth in other loans and advances stood at 12.3% in January 2025, relative to 10.3% in December. The growth emanated from increased credit uptake by businesses in the mining and construction sectors during the period under review.
Annual growth in overdraft credit shrank by 8.6% in January from a contraction of 6% at the end of the previous month.
“This marks a twelve-month run of declining growth, as businesses continued to settle their overdraft balances. “
The central bank added that the annual growth in credit extended to households slowed to 2.6% at the end of January, from 3.1% recorded in December 2024.
“The sluggish growth in credit extended to households during the period under review stemmed from lower demand for mortgage credit and overdrafts, as well as other loans and advances, while demand for installment and leasing increased.”
The central bank added that the growth in business credit stood at 6.1% in January, higher than the 5.4% recorded in the previous month.
“The higher growth in business credit emanated mainly from an uptake of credit in the form of other loans and advances and installment and leasing, primarily from corporations in the mining, construction, and tourism sectors.”
