Big picture. Namibia's macroeconomic environment is cautious but improving. The Minister of Finance tabled a N$87.8 billion budget for 2026/27 on 26 February, headline inflation cooled to 2.4%, and the country recorded a N$193.2 million trade surplus in January. Risk-adjusted returns favoured Allan Gray Namibia at the conservative end and Old Mutual Namibia Growth at the aggressive end.
Why it matters
- Fiscal consolidation stays on track. The N$87.8bn budget targets a positive primary balance, stable public debt, and a narrower deficit over the Medium-Term Expenditure Framework.
- Inflation cooled to 2.4% (from 3.6% a year earlier). Transport disinflated 1.0% and food eased to 1.6%, though housing and utilities pushed up 4.7%.
- Growth is moderating. 2025 GDP forecast: 2.9%, down from 3.7% in 2024. Primary sector +2.8% (mining-led); secondary 0.8%; tertiary 3.3%.
Macro indicators at a glance
- National budget 2026/27: N$87.8bn total. N$81.3bn operational, N$6.5bn state-funded development, N$4bn externally funded.
- Key allocations: N$2.8bn subsidised tertiary education. N$1.7bn public service wage adjustments. N$100 increase to the elderly pension.
- Private credit: N$5.0bn, up 4.20% year-on-year. Business credit led at 5.83%; household credit a more cautious 3.04%.
- Trade surplus: N$193.2m (N$11.4bn exports, N$11.2bn imports). Top export destinations — China 22.6%, South Africa 20.0%. Top import source — South Africa 31.2%.
- Foreign reserves: N$51.9bn — 3.3 months of import cover.
- Currency: N$16.03/USD average early February, generating a fuel over-recovery. Pump prices held; dealer margin +2c to N$2.38.
- Oil pressure: Iran conflict tightened global supply via Strait of Hormuz disruptions. Prices expected to remain elevated and volatile while transit routes stay threatened.
Fund performance highlights
- Best 1-year return: Old Mutual Namibia Growth, 48.3% (vs 39.6% benchmark).
- Best 5-year return: Old Mutual Namibia Growth, 17.3% annualised.
- Top conservative pick: Allan Gray Namibia Stable A, 12.2% annualised over 5 years vs a 6.1% benchmark — strong risk-adjusted outperformance.
- Underperforming benchmark: STANLIB Namibia Managed A, –4.0pp on 5-year (10.0% vs 14.0% benchmark).
Investment performance vs benchmark
Latest fund fact sheets, 28 February 2026.
| Fund | AUM | 1Y | 1Y BM | 3Y p.a. | 3Y BM | 5Y p.a. | 5Y BM |
|---|---|---|---|---|---|---|---|
| Money Market | |||||||
| STANLIB Money Market A | N$1.52bn | 7.1% | 7.5% | 7.9% | 8.0% | 6.7% | 6.7% |
| STANLIB CashPlus R | N$1.64bn | 6.4% | 7.5% | 7.6% | 8.0% | 6.4% | 6.7% |
| FNB Namibia Money Market A | N$2.74bn | 7.2% | 6.3% | 7.7% | 6.9% | 6.6% | 6.0% |
| Conservative | |||||||
| STANLIB Income A | N$1.50bn | 8.9% | 7.4% | 9.1% | 8.0% | 7.7% | 6.7% |
| Ashburton Namibia Income A | N$1.24bn | 7.8% | 7.4% | 10.4% | 8.0% | 9.7% | 6.7% |
| NAM Coronation Balanced Defensive | N$0.24bn | 12.8% | 6.7% | 11.2% | 6.9% | 9.8% | 7.7% |
| Allan Gray Namibia Stable A | N$0.57bn | 20.3% | 6.6% | 13.5% | 7.2% | 12.2% | 6.1% |
| Moderate | |||||||
| STANLIB Namibia Managed A | N$0.21bn | 20.8% | 20.4% | 14.3% | 15.6% | 10.0% | 14.0% |
| Allan Gray Namibia Balanced B | N$6.94bn | 29.5% | 23.4% | 17.0% | 14.6% | 15.2% | 12.1% |
| M&G Namibian Inflation Plus A | N$2.46bn | 15.1% | 6.9% | 11.6% | 7.8% | 11.0% | 8.6% |
| NAM Coronation Balanced Plus | N$1.65bn | 16.3% | 23.8% | 15.2% | 15.4% | 12.1% | 12.5% |
| Ninety One Namibia Managed R | N$6.44bn | 25.1% | 22.1% | 15.0% | 14.8% | 12.0% | 12.5% |
| STANLIB Namibia Inflation Plus A | N$0.78bn | 19.0% | 6.9% | 11.9% | 7.8% | 11.2% | 8.6% |
| Old Mutual Namibia Managed | N$1.08bn | 21.4% | 22.2% | 14.7% | 14.8% | 12.7% | 12.3% |
| Aggressive | |||||||
| Old Mutual Namibia Growth | N$0.88bn | 48.3% | 39.6% | 23.0% | 19.7% | 17.3% | 15.7% |
The takeaway
Macro stability is improving, but growth in secondary and tertiary sectors is slowing. For investors, the spread between the best and worst risk-adjusted returns is widening. Speak to a Liberty advisor about which fund profile fits your goals.
Source: Solomon Kint, Financial Research Analyst — High Economic Intelligence (HEI).