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<\/p>\nNamibia\u2019s household financing conditions remained tight in November 2025, with credit demand continuing to favour essential and asset-backed borrowing.<\/p>\n
At the same time, mortgage and unsecured lending lagged, according to Simonis Storm analysts.<\/p>\n
The firm says despite supportive monetary conditions and a stabilising liquidity environment, affordability pressures and weak income growth continued to limit household borrowing.<\/p>\n
As a result, household credit demand remained concentrated in essential and asset-linked categories rather than broad-based consumption or housing finance.<\/p>\n
Borrowing patterns point to continued caution among households despite lower lending rates, Simonis Storm economist Almandro Jansen says.<\/p>\n
Household mortgage lending remained under pressure, with growth weakening further to 0% year on year.<\/p>\n
Subdued demand for home loans reflected high construction costs, rising utility charges and the limited availability of affordable housing stock.<\/p>\n
Jansen says mortgage activity remained largely confined to higher-income borrowers, while affordability constraints continued to exclude much of the lower- and middle-income segment from the property market.<\/p>\n
\u201cMortgage demand remains muted, reflecting both affordability constraints and structural supply limitations in the housing market,\u201d he says.<\/p>\n
Overall household credit growth softened further to 2.5% year on year in November, down from 2.8% in October, reinforcing the view that household recovery remains slow, uneven and highly selective.<\/p>\n
The household debt stock remained above N$70 billion, with borrowing behaviour constrained by modest wage growth, elevated living costs and persistent affordability pressures.<\/p>\n
\u201cDespite a sizeable household debt stock, borrowing appetite remains cautious as real income growth continues to lag rising living costs,\u201d Jansen says.<\/p>\n
In contrast, installment and leasing credit remained the strongest-performing household-linked category, with growth accelerating to 15.8% year on year in November from 14.8% in October.<\/p>\n
This was supported by strong vehicle financing activity and improved availability of imported models.<\/p>\n
However, Simonis Storm says an increasing share of this momentum originated from corporate rather than household borrowers, suggesting that household participation, while resilient, remained secondary to business-driven demand.<\/p>\n
\u201cHouseholds are prioritising vehicle and equipment purchases over property investment due to lower upfront costs and the greater flexibility of installment-based lending,\u201d Jansen says.<\/p>\n
Overdraft lending to households remained in contraction for the eleventh consecutive month, declining to minus 12.6% from minus 10.4% in October, as elevated food, transport and utility costs continued to erode disposable incomes.<\/p>\n
Other loans and advances recorded slower growth of 7.2% year on year, down from 8.2% in October, consistent with more selective uptake of unsecured credit focused on short-term consumption smoothing, education and healthcare-related expenses.<\/p>\n
\u201cOverall risk aversion among households remains elevated, with unsecured borrowing still subdued amid sustained financial strain,\u201d Jansen says.<\/p>\n
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