By: Nghiinomenwa-vali Erastus
The Bank of Namibia’s recent annual report paints a troubling picture of the country’s economic landscape, with non-performing loans (NPLs) reaching N$6.5 billion by the end of 2023.
Of these loans, 51% are attributed to individuals, while the real estate and business service sector accounts for 11.8%.
The increase in NPLs reflects deteriorating economic conditions, impacting the ability of households and businesses to service their debt.
Factors such as slow sectoral recovery, higher-than-normal inflation, and the prevailing interest rate environment have further exacerbated the situation.
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