Credit extensions led to increase in household borrowers

18 Sep 2019 18:00pm
WINDHOEK, 18 SEP (NAMPA) – The total number of household borrowers stood at 238 640 with term-loan household borrowers accounting for 90,4 per cent during the year ending December 2018, the Namibia Financial Institutions Supervisory Authority (Namfisa) has said.
This was revealed by Namfisa’s Chief Executive Officer, Kenneth Matomola during the launch of its Annual Report in the capital on Wednesday.
According to the report, the value of the micro-lending loan book increased by 18 per cent to N.dollars 6.4 billion 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 billion compared to N.dollars 3.6 billion 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 in 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, the report noted.