Big picture. January 2026 marked a stabilisation phase for Namibia's economy. External buffers held, the Namibian dollar appreciated to multi-year highs, and trade deficits narrowed. Resilient credit conditions offset a moderation in growth from 2024 peaks.
Why it matters
- Multi-year inflation low. Headline inflation at 2.9% — the lowest since February 2021.
- Currency strength returned. The Namibian dollar averaged N$16.41/USD over the first 20 days of January, then strengthened further to N$15.88 by 12 February.
- Trade deficit narrowed sharply. Down to N$393m in December 2025 from N$4.4bn in November, on a 22.9% import contraction and 7.5% export growth.
Macro indicators at a glance
- GDP Q3 2025: 1.9% year-on-year — the 18th consecutive quarterly expansion. Full-year 2025 estimate: 3.0% (down from 3.7% in 2024).
- Headline inflation: 2.9% in January 2026, down from 3.2% in December 2025. Driven by Hotels, Cafes & Restaurants (3.6% vs 8.2% a year earlier), Food (1.9% vs 5.3%), and Education (2.4% vs 4.7%).
- Core inflation: 3.2%, down slightly month-on-month.
- Cumulative 2025 trade: N$125.7bn exports vs N$150.7bn imports. Annual deficit improved to N$25.0bn (from N$41.7bn in 2024).
- Top trading partners: South Africa accounts for 25.5% of exports and 38.3% of imports. Top exports — non-monetary gold (18.0%), precious stones (17.5%), uranium (16.8%). Top imports — petroleum oils (13.7%), commercial vehicles (7.2%).
- International reserves: N$51.6bn — 3.3 months of import cover, sufficient to sustain the currency peg.
- Private credit: PSCE +4.43% year-on-year (N$5.2bn). Business credit drove growth at +6.8% YoY; household credit growth more subdued at 2.74%.
- Fuel prices fell. Petrol cut by N$1.00/litre, both diesel grades by N$0.50/litre, effective 4 February. Walvis Bay pumps now: petrol N$19.58, diesel 50ppm N$19.63, diesel 10ppm N$19.73. Dealer margin +14c to N$2.36.
Policy and pipeline
- Free tertiary education started. Subsidies cover tuition and registration for first-time undergraduate and TVET students. Postgraduate studies excluded. NSFAF loans up to N$17,000 for accommodation, transport, and meals. Income threshold for non-tuition support tightened from N$500,000 to N$100,000.
- Green hydrogen got funded. AfDB approved a US$10m loan to Hyphen Energy for the Lüderitz project on 22 January.
Fund performance highlights
- Best 1-year return: Old Mutual Namibia Growth, 41.9% (vs 39.6% benchmark).
- Best 5-year return: Old Mutual Namibia Growth, 17.4% annualised.
- Top conservative pick: Allan Gray Namibia Stable A — 11.9% annualised over 5 years vs a 6.1% benchmark.
- Underperforming benchmark: STANLIB Namibia Managed A — 4.2pp behind on 5-year (10.0% vs 14.2% benchmark).
Investment performance vs benchmark
Latest fund fact sheets, 31 January 2026.
| Fund | AUM | 1Y | 1Y BM | 3Y p.a. | 3Y BM | 5Y p.a. | 5Y BM |
|---|---|---|---|---|---|---|---|
| Money Market | |||||||
| STANLIB Money Market A | N$1.43bn | 7.2% | 7.5% | 7.9% | 8.0% | 6.6% | 6.7% |
| STANLIB CashPlus R | N$1.65bn | 6.4% | 7.5% | 7.6% | 8.0% | 6.4% | 6.7% |
| FNB Namibia Money Market A | N$2.72bn | 7.3% | 6.3% | 7.8% | 7.0% | 6.5% | 6.0% |
| Conservative | |||||||
| STANLIB Income A | N$1.46bn | 8.9% | 7.4% | 9.1% | 8.0% | 7.4% | 6.7% |
| Ashburton Namibia Income A | N$1.18bn | 8.0% | 7.4% | 10.5% | 8.0% | 9.6% | 6.7% |
| NAM Coronation Balanced Defensive | N$0.24bn | 12.7% | 6.2% | 11.2% | 7.0% | 10.2% | 7.7% |
| Allan Gray Namibia Stable A | N$0.55bn | 17.5% | 6.6% | 13.0% | 7.2% | 11.9% | 6.1% |
| Moderate | |||||||
| STANLIB Namibia Managed A | N$0.22bn | 18.2% | 20.5% | 13.8% | 17.3% | 10.0% | 14.2% |
| Allan Gray Namibia Balanced B | N$6.88bn | 25.7% | 18.8% | 16.2% | 13.3% | 14.9% | 12.1% |
| M&G Namibian Inflation Plus A | N$2.50bn | 13.4% | 7.2% | 11.1% | 8.0% | 10.9% | 8.7% |
| NAM Coronation Balanced Plus | N$1.67bn | 16.1% | 18.9% | 15.3% | 14.6% | 13.0% | 12.7% |
| Ninety One Namibia Managed R | N$6.52bn | 20.3% | 20.0% | 13.5% | 14.1% | 12.0% | 12.5% |
| STANLIB Namibia Inflation Plus A | N$0.81bn | 17.6% | 7.2% | 11.8% | 8.0% | 11.0% | 8.7% |
| Old Mutual Namibia Managed | N$1.09bn | 18.0% | 19.8% | 13.9% | 14.1% | 12.6% | 12.2% |
| Aggressive | |||||||
| Old Mutual Namibia Growth | N$0.88bn | 41.9% | 39.6% | 20.9% | 18.9% | 17.4% | 16.5% |
Performing against benchmark (within 0.5pp or above)Underperforming (0.5-2.0pp below)Not performing (more than 2.0pp below)
The takeaway
January was a stabilisation month, not a breakout. With growth moderating but external buffers strong, the spread between aggressive winners and moderate laggards is widening. Speak to a Liberty advisor about which fund profile fits your goals.
Source: Janet Haufiku, Junior Data Analyst — High Economic Intelligence (HEI).