Salomo Hei unpacks the implications of the central bank’s announcement to maintain a 3.75% margin above the repo rate

[PODCAST]

Namibian consumers could soon see some relief in the cost of borrowing after the Bank of Namibia urged commercial banks to lower their prime lending rates to align with practices across the Common Monetary Area (CMA). Although the central bank kept the repo rate unchanged at 6.75%, it emphasized that banks in Namibia have maintained a 3.75% margin above the repo rate – a figure higher than the standard 3.5% in fellow CMA countries.

With local banks posting billions in profits—largely driven by interest on loans—questions arise about whether these institutions are doing enough to support economic recovery and household affordability. We now speak to economist Salomo Hei to unpack the implications of the central bank’s announcement and what it could mean for credit access, consumer debt, and the broader economy.