Namibia's private sector is currently facing a total debt of N$122.3 billion, following a month-on-month borrowing increase of N$808.2 million in December 2025. According to a recent analysis by IJG Securities on private sector credit extension (PSCE), the rate of credit growth dipped slightly to 4.4% year-on-year (y/y) in December, down from 4.5% in November. This decline in growth rate has been attributed to lower demand for credit and net repayments by businesses, indicating a cautious approach amid uncertain economic conditions.

Furthermore, credit extended to individual borrowers experienced a modest rise of 0.6% month-on-month and 2.7% year-on-year, signifying a slightly more robust growth than the 2.5% y/y increase registered in the previous month. This increase in individual borrowing reflects ongoing consumer confidence in the housing market despite the overall trend in corporate borrowing. However, on an annual basis, mortgage loans saw only a negligible growth of 0.2%, showcasing the lukewarm response from the housing sector.

IJG Securities also highlights that the growth in mortgage loans, which contributed to the month's positive credit extension, showed a monthly increase of 0.3%. This rebound follows a contraction of 0.02% in November, indicating a potentially stabilizing trend in the real estate sector. As businesses strive to manage their borrowings while individuals are leaning towards mortgages, the overall credit landscape in Namibia underscores a nuanced shift in borrowing behaviors and economic confidence within the private sector.