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June 2026
The Namibian
Simonis Stormnoted that government borrowingsurged by 63.6% compared to year earlier
Source
“According to Simonis Storm economist Almandro Jansen, government borrowing from the banking sector surged by 63.6% compared to a year earlier, making it the biggest driver of money supply growth in the economy.”
Simonis StormidentifiedFirstRand Namibia as preferred banking stock on NSX
Source
“The report identifies FirstRand Namibia as the preferred banking stock on the Namibian Stock Exchange (NSX), citing its ability to consistently generate returns on equity above the current cost of equity across a range of economic scenarios.”
Simonis StormsaidNamibia's debt position remains manageable but borrowing pressure is increasing.
Source
“Chamwe Kaira Namibia's debt position remains manageable, but pressure on the country's finances is increasing as borrowing requirements continue to rise, according to financial services firm Simonis Storm.”
Simonis StormanalysedNamibia's inflation slowing to 2.4% year-on-year in February 2026
Source
“According to analysis from financial services firm Simonis Storm (SS), Namibia's headline inflation slowed to 2.4% year-on-year in February 2026, down from 2.9% in January and 3.6% a year earlier.”
Simonis Stormestimatedinflation could climb to 3.5%–4.5% by mid-2026 under certain oil price scenarios
Source
“Under a scenario where Brent averages US$95 to US$100 per barrel in the second quarter, Simonis Storm estimates Namibia's inflation rate could climb from the current 2.4% to between 3.5% and 4.5% by mid-2026.”
Simonis Stormnotescorporate repayments, restrained household borrowing, and liquidity effects from Eurobond redemption caused softening.
Source
“Simonis Storm notes that corporate repayments, restrained household borrowing and lingering liquidity effects from Namibia's Eurobond redemption all played a role.”
Simonis Stormnotedheadline sales momentum softened toward end of 2025
Source
“In its analysis of the latest vehicle sales figures, financial services firm, Simonis Storm (SS), noted that while headline sales momentum softened toward the end of 2025, the underlying fundamentals suggest the sector is transitioning from a sharp cyclical rebound into a more durable, value-driven phase of expansion.”
The Namibian government's debt to local banks climbed to N$52.4 billion in April after a N$20.4 billion increase over the past year, with borrowing from the banking sector surging 63.6% and raising concerns about future inflationary pressures, according to economist Almandro Jansen.
Why it matters
Government debt to local banks soaring to N$52.4 billion signals rising fiscal pressure and inflationary risks for the Namibian economy.
The Namibian government's debt to local banks climbed to N$52.4 billion in April after a N$20.4 billion increase over the past year, with borrowing from the banking sector surging 63.6% and raising concerns about future inflationary pressures, according to economist Almandro Jansen.
Namibia's banking sector continues to draw investors, though earnings quality differences among listed banks are now structural rather than cyclical, according to Simonis Storm's Banking Report 2026. FirstRand Namibia is identified as the preferred banking stock, while Standard Bank Namibia received an accumulate rating and Capricorn Group a reduce rating pending improvements in key indicators.
Headline inflation jumped to 3.1% in April from 2.1% in March, primarily driven by transport costs reflecting currency depreciation and higher global fuel prices. With the repo rate held at 6.50%, real interest rates have fallen, supporting credit demand but eroding household purchasing power.
Namibia's debt position remains manageable and the country has not lost access to financial markets, according to Simonis Storm, but pressure on government finances is increasing as borrowing requirements rise. Domestic debt has reached N$154.4 billion, interest now absorbs approximately 18% of revenue, and the country has become increasingly dependent on the domestic market to absorb government borrowing.
Namibia's inflation fell to a four-year low of 2.4% in February, but economists warn geopolitical tensions in the Middle East have raised global oil prices, potentially pushing inflation back toward 3.5–4.5% by mid-2026 since Namibia imports all its fuel and most of its food.
The Institute for Public Policy Research warns that Namibia faces governance risks as it prepares for oil production, citing lack of transparency in petroleum licensing, insufficient beneficial ownership disclosure, and weak local content oversight as key areas needing reform before the expected investment decisions from TotalEnergies and Mopane projects. Addressing these challenges through the Access to Information Act and digital transparency could help Namibia avoid the "resource curse" while ensuring oil revenues benefit communities rather than political elites.
Namibia's FY2026/27 budget allocates N$81.3 billion to operational spending but cuts capital expenditure to N$8.47 billion, prompting analysts to warn that low investment in infrastructure risks slower economic growth while debt servicing consumes 18% of projected revenue.
Namibia is offering higher interest rates on short-term treasury bills than South Africa, making it more attractive for investors, according to a Simonis Storm report. Last week the Bank of Namibia borrowed N$1.51 billion through treasury bills with oversubscription at strong levels, reflecting improving liquidity conditions.
Private sector credit extension grew 4.4% year-on-year in December 2025, down slightly from November but well above 2024 levels, driven by cautious borrowing rather than banking stress. Households account for 57% of total credit, while businesses are selectively investing in asset-backed financing and managing balance sheets more carefully.
Namibia's vehicle market posted 14,498 sales in 2025, its strongest year since 2015, driven by fleet investment and moderating credit conditions, but faces structural disruption from rising Chinese manufacturers reshaping regional supply chains and competitive dynamics. Cooling sales momentum at year-end should not signal reversal, as underlying fundamentals remain constructive with anticipated further monetary easing and corporate fleet demand expected to anchor volumes through 2026.
The US House of Representatives passed legislation extending the African Growth and Opportunity Act (Agoa) through 2028, preserving duty-free access to the US market for eligible sub-Saharan African countries including Namibia. The previous framework expired on 30 September 2025; if enacted, the extension would benefit Namibian exports of agricultural products, beef, and manufactured goods that face stricter competition without preferential access.
Namibia's headline inflation fell to 3.2% in December 2025 and averaged 3.5% for the year, remaining within the central bank's target range. According to financial services firm Simonis Storm, inflation is expected to tick slightly higher in 2026, averaging 3.6%–3.8%, driven mainly by structural and service-related factors rather than broad-based demand, with housing and utilities remaining the primary pressure points.
Financial advisory firm Simonis Storm predicts a 25 basis point rate cut in the first quarter of 2026, contingent on inflation remaining contained and financial stability being maintained. The forecast comes as inflation slowed to 3.4% year on year in November, within the Bank of Namibia's target range.
Private Sector Credit Extension eased to 4.5% year-on-year in November 2025, down from 4.7% in October, as both corporate and household borrowing softened. According to financial services firm Simonis Storm, credit growth remains well above 2023–2024 levels and is expected to stabilise around 4.5–5.0% into early 2026, with corporate credit continuing to drive growth through investment in productive assets.
Namibia's household credit growth slowed to 2.5% year-on-year in November 2025, with weak mortgage demand and continued borrowing caution driven by high living costs and modest wage growth. Households are shifting towards essential and asset-backed borrowing, particularly vehicle financing, while mortgage lending stagnated at 0% growth due to affordability constraints and limited affordable housing stock.