According to the First National Bank of Namibia, money extended to the private sector (households and businesses) will remain flat for 2026.
The Bank stated this in its analysis of the latest Monetary Policy decision by the central bank.
First National Bank researchers indicated that the weak economic outlook will play a role in businesses’ approach to slow down on borrowing.
“Looking ahead to 2026, PSCE growth is expected to soften to an average of around 3.3%, as businesses adopt more conservative balance sheet strategies in response to a weaker economic outlook,” the bank wrote.
Softer demand for working capital and investment credit is expected to weigh on overall credit momentum. Private sector credit extension (PSCE) remained subdued at 4.4% y/y in December 2025, reflecting slower credit uptake from both households and corporates.
