By: Justicia Shipena
Economists are warning that the growing volume of non-performing loans (NPLs) in Namibia could destabilise the financial sector and jeopardise banks’ balance sheets.
An increasing number of Namibians are defaulting on loans due to affordability challenges, with experts attributing the trend to prolonged economic difficulties spanning nearly a decade.
By the end of 2024, commercial banks had disbursed N$115.9 billion to businesses, projects, and individuals across various sectors, with individuals receiving the largest share at N$49.7 billion.
However, servicing N$3.7 billion in loans has become challenging for some borrowers, leading to their classification as non-performing, meaning they are overdue for more than three months.
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