Cirrus chart of the week

A non-performing loan is one in which the borrower has not made a payment for more than 90 days (three months) or longer. Given the lack of payment for such a duration, the loan is classified as “non-performing”, with a higher risk that the borrower is unlikely or unable to service this loan.As per the latest banking sector data from the Bank of Namibia (Q1 ’24), the total loans outstanding amounted to N$112.7 billion. Individuals represent the largest share with 43% (N$49.3 billion) of total loans. Of the total individual loans outstanding, 7.1% are non-performing – highlighting the strain on households as many people are struggling to pay back their loans.When turning to the business sectors, there is a wide variance in the health of loans. The three largest sectors that have the highest non-performing loans relative to the total loans to the sector are construction (14.6% are non-performing), agriculture and hunting (8.9%), and trade and accommodation (6.5%). The bigger the bubble size in the chart, the higher the percentage of non-performing loans.Construction has been ailing for the past decade as the large-scale infrastructure slowed down (public and private), while the Namibian economy has struggled over the period as well. The agriculture and hunting sector has repeatedly been impacted by drought (again this year), while the trade and accommodation sector is still recovering from the impact of Covid-19 lockdowns and travel restrictions.

Cirrus chart of the week

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Republikein 2025-03-14

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Cirrus chart of the week

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Republikein 2025-03-14

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