Credit extensions led to increase in household borrowers

The total number of household borrowers stood at 238 640 with term-loan household borrowers accounting for 90,4 per cent and payday borrowers accounting for 9,6 per cent.

This was revealed at the launch of the Namibia Financial Institutions Supervisory Authority (Namfisa)'s Annual Report for 2019 here on Wednesday.

The value of the micro-lending loan book increased by 18 per cent to N.dollars 6.5 million in December 2018 from N.dollars 5,5 billion the previous year.

Namfisa attributed the growth to a higher amount of credit extended by term lenders. The total value of loans disbursed during 2018 grew by 12,4 per cent to N.dollars 4 million compared to N.dollars 3.6 the previous financial year.

Meanwhile, the long-term industry's total assets grew by five per cent to N.dollars 56.6 billion while the short-term industry's total assets increased by 4,9 per cent to N.dollars 6.5 billion.

The moderate growth is assets was attributed to volatile and declining market performances.

Total retirement funds investments, including insurance policies, increased by 2,4 per cent year-on-year to N.dollars 158.5 billion.

Investments held in insurance policies accounted for 12,1 per cent of the industry's total investments.

Source: Namibia Press Agency