Namibia’s economy had a tough 2025, growing at only 2.9 percent for the full year — slower than most economists had hoped. “Factories produced less, farms struggled through drought, and households cut back on spending,” says Pieter De Klerk, CEO of Covest Wealth. “But 2026 is shaping up to be a different story. The government and the central bank are both forecasting growth of between 3 and 4 percent, backed by improved rains, stronger uranium exports, and new investment in oil and gas.” One area generating real excitement is Namibia’s emerging oil sector — TotalEnergies’ major offshore discovery in the Orange Basin is moving toward a final investment decision this year, and if it proceeds, it could fundamentally change the size and shape of the Namibian economy over the next decade.
Your Cost of Living Is Getting Cheaper
Prices are rising more slowly than they have in five years. Inflation fell to just 2.9 percent in January 2026, meaning the things you buy every day are barely more expensive than a year ago. “Food prices have stabilised thanks to better local harvests, and petrol dropped by N$1.00 per litre in February — that flows through into transport and the price of most goods,” notes De Klerk. The Bank of Namibia held its main interest rate unchanged in February, but most analysts expect further cuts later in 2026. “The prime lending rate is currently 10 percent, and we expect it to keep coming down,” says De Klerk. “That means home loans and car finance should get a little more affordable as the year goes on. For anyone who has been holding off on a big purchase, the second half of 2026 could be a better time to act.”
Banks Are Still Cautious About Lending to Families
While borrowing costs have come down, banks are mainly extending credit to businesses rather than ordinary people. “Home loan growth is nearly flat, and people are paying off their overdrafts rather than spending more,” explains De Klerk. “Vehicle sales are a bright spot — Namibians bought more cars in 2025 than in any year since 2015 — but the broader picture for household finances remains tight. Until we see mortgage lending pick up, it is hard to say that the rate cuts have fully reached the people who need them most.”
Namibia’s Mines Are Keeping the Country Afloat
The gap between what Namibia sells to the world and what it buys narrowed by 35 percent in 2025, falling to N$25 billion. “That improvement was driven by strong exports of uranium, gold, and diamonds,” says De Klerk. “Our foreign currency reserves stand at N$51.9 billion — enough to cover more than three months of imports — which gives the country a solid buffer against external shocks. It is easy to overlook trade figures, but a healthier trade balance means Namibia is less reliant on borrowing from abroad to fund its spending, and that matters for the long-term stability of the dollar in your pocket.”
Conclusion
“The 2025 numbers were not what anyone hoped for, but the foundations are holding,” concludes De Klerk. “Inflation is low, fuel is cheaper, and interest rates are likely to keep falling. For those who have stayed disciplined with their savings and investments, that patience is paying off — and as you can see in the table alongside this article, there are still plenty of options delivering returns well above the current inflation rate. The opportunity to keep building wealth is very much still there.”
