The Bank of Namibia published its April 2025 Financial Stability Report, concluding that Namibia’s financial system remained stable, sound and resilient in 2024 despite vulnerabilities arising from the global environment. It reports continued strength across the banking and non-bank financial institution sectors and the national payment system, alongside macroprudential steps aimed at reinforcing sector resilience. Banks remained well-capitalised, profitable and liquid in 2024, with a notable improvement in asset quality. The NBFI sector’s aggregate assets grew faster than inflation, and the national payment system and infrastructure remained stable while supporting reliable payments. The report also notes that domestic economic activity expanded in 2024 but at a slower pace than in 2023 due to weak performance in the primary industry, while household debt to disposable income declined as income improved following salary increments and government tax relief measures. On the external environment, global growth was stable in 2024 and is projected to slow in 2025 amid greater uncertainty around trade tensions and policy. Macroprudential Oversight Committee work included advancing preparations and industry consultations on a countercyclical capital buffer framework and approving the use of a growth-at-risk model to strengthen macroprudential surveillance.

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