Windhoek: Namibia's financial system remains stable, sound and resilient despite heightened global macro-financial conditions, the Bank of Namibia's Macroprudential Oversight Committee (MOC) said in a statement issued on Tuesday. The statement followed the committee's first meeting of 2026, held on 20 July, during which it assessed global and domestic macro-financial conditions and their implications for financial stability.
According to Namibia Press Agency, the financial system remains sound and stable. Financial institutions continue to maintain adequate financial and prudential buffers to withstand potential shocks, while the financial market infrastructure remains operationally resilient, the committee said. It added that the committee remains committed to monitoring emerging vulnerabilities and stands ready to implement appropriate macroprudential policy measures should systemic risks intensify.
The statement highlighted that Namibia's economy demonstrated resilience during the review period, with real gross domestic product (GDP) growing by 2.0% in the first quarter of 2026 after recording growth of 0.1% in the final quarter of 2025. The bank projects economic growth to increase to 2.6% this year, supported mainly by stronger activity in uranium mining, wholesale and retail trade, financial services, public administration and defence. However, geopolitical tensions, weaker global demand, inflationary pressures and water supply constraints remain downside risks.
BoN's MOC reported that the banking sector remained well capitalised, profitable and liquid during the first quarter of 2026, with total banking sector assets increasing by 3.8% to N$195.1 billion. The non-performing loan ratio declined from 4.3 per cent in the fourth quarter of 2025 to 4.2 per cent in the first quarter of 2026, while liquidity and capital levels remained above regulatory requirements.
The committee also noted that the non-bank financial institutions sector remained financially sound, while risks in the residential property market and national payment infrastructure remained contained. The MOC concluded that the financial system remains sound, stable and resilient despite the prevailing macroeconomic environment. It added that no additional macroprudential policy intervention is required at this stage, noting that existing policy measures and supervisory actions are sufficient for the current macro-financial environment. The committee said it will continue to monitor developments and deploy appropriate policy measures should conditions warrant such action.