Overdraft lending boosts credit growth in April

Staff Reporter PRIVATE sector credit growth in Namibia improved in April 2026, driven mainly by a surge in overdraft lending to both households and corporates, although underlying demand for longer-term credit remained subdued, according to the latest FNB Namibia Private Sector Credit Extension (PSCE) note. The report, authored by FNB Namibia Graduate Analyst Ndateelela Amukuhu, shows that PSCE rose to 4.8% year-on-year in April, up from 4.3% in March, marking the strongest growth so far in 2026 and the highest level since September last year. Corporate lending remained the main driver of overall credit growth, accelerating to 5.5% year-on-year in April from 4.4% in March, while household credit edged up slightly to 4.2% from 4.1%.

The improvement was largely attributed to a sharp rebound in overdraft lending, which rose significantly across both sectors. Amukuhu added that overdraft credit expanded strongly as corporates, particularly in the mining sector, and households increasingly relied on short-term funding. In contrast, other credit categories showed weaker performance, with mortgage lending, instalment credit, and other loans reflecting subdued demand.