The country’s inflationary pressures have for the first time hit a double digit percentage figure, the latest monitory policy review statement by the Bank of Namibia (BoN) shows.
“The majority of the food inflation experienced in Namibia remains driven by external cost push factors which are out of Namibia’s control. Transport also contributed to the overall, increasing 1.2% month on month and 6.1% year on year. Once again much of the transport inflation is being driven by external factors,” BoN governor Ipumbu Shiiimi noted.
According to Shiiimi private sector credit demands increased illustrating the growing need for credit in the Namibia market where individuals have been borrowing to drive their luxury spending.
“This is the largest of credit seen in five years and was driven predominantly by credit extension to business which reached 21.1% year on year in October.”
Despite these growing challenges, Shiimi argued that the operating environment in the country remains sound enough and good to lure foreign direct investment.
The Governor also maintained its repo rate at 5.5% basis points.