Big picture. Namibia's economy posted its first year-on-year contraction since 2021, with Q4 2025 real GDP down 0.5% as mining fell 28.8%. Inflation kept easing to 2.1%, the stock market's overall index dropped 10.68% on global volatility, and Old Mutual Namibia Growth again led the funds with 30.4% over one year.
Why it matters
- First contraction since 2021. Q4 2025 real GDP fell 0.5% year-on-year, the first annual contraction since Q1 2021, though quarter-on-quarter growth held positive at 6.4%.
- Mining drove the drag. Mining and quarrying contracted 28.8%, hit by lab-grown diamond competition and depleting open-pit gold reserves. Full-year 2025 growth slowed to 1.7%, from 3.8% in 2024.
- Tertiary sector carried the economy. Services expanded 4.2% and the secondary sector returned to growth at 2.1%, offsetting the primary-sector decline.
Macro indicators at a glance
- Inflation eased to 2.1%: down from 2.4% in February and 4.2% a year earlier. Core inflation held at 2.9%.
- Trade deficit widened: N$5.2bn in February 2026, on N$6.6bn of exports against N$11.8bn of imports. South Africa stayed the largest trading partner, followed by Zambia and China.
- Private credit grew 4.73%: year-on-year (N$5.6bn). Business credit led at 7.28% and instalment-and-leasing finance jumped 28.10%. Household credit rose a cautious 2.91%.
- Foreign reserves near N$52bn: enough to support the currency peg to the South African Rand.
- Fuel costs climbed: April petrol rose N$2.50 a litre and diesel N$4.00 a litre. Cabinet cut fuel levies 50% for April to June to soften the impact.
- Next rate decision: the Bank of Namibia's Monetary Policy Announcement is set for 22 April 2026.
Markets and institutions
- Stock market fell: the NSX Overall Index dropped 10.68% month-on-month to 2,151.37 on global volatility, while the Local Index edged up 0.43%.
- Central bank delivered: the Bank of Namibia met 97.6% of its 2025 strategic targets and posted N$553m in distributable operating profit.
Fund performance highlights
- Best 1-year return: Old Mutual Namibia Growth, 30.4% (vs 23.6% benchmark).
- Best 5-year return: Old Mutual Namibia Growth, 14.5% annualised (vs 13.0% benchmark).
- Top conservative pick: Allan Gray Namibia Stable A, 11.6% annualised over five years vs a 6.1% benchmark.
- Furthest behind benchmark: STANLIB Namibia Managed A, 5.5pp below on five years (8.5% vs 14.0%).
Investment performance vs benchmark
Latest fund fact sheets, 31 March 2026.
| Fund | AUM | 1Y | 1Y BM | 3Y p.a. | 3Y BM | 5Y p.a. | 5Y BM |
|---|---|---|---|---|---|---|---|
| Money Market | |||||||
| STANLIB Money Market A | N$1.50bn | 7.0% | 7.3% | 7.9% | 8.0% | 6.7% | 6.8% |
| STANLIB CashPlus R | N$1.57bn | 6.3% | 7.3% | 7.5% | 8.0% | 6.5% | 6.8% |
| FNB Namibia Money Market A | N$2.74bn | 7.1% | 6.3% | 7.7% | 6.9% | 6.6% | 6.4% |
| Conservative | |||||||
| STANLIB Income A | N$1.51bn | 8.2% | 7.3% | 8.9% | 8.0% | 7.6% | 6.8% |
| Ashburton Namibia Income A | N$1.23bn | 7.5% | 7.3% | 10.0% | 8.0% | 9.7% | 6.8% |
| NAM Coronation Balanced Defensive | N$0.25bn | 9.0% | 5.4% | 10.1% | 6.7% | 8.9% | 7.5% |
| Allan Gray Namibia Stable A | N$0.58bn | 16.0% | 6.6% | 12.7% | 7.2% | 11.6% | 6.1% |
| Moderate | |||||||
| STANLIB Namibia Managed A | N$0.22bn | 13.9% | 23.6% | 12.1% | 16.5% | 8.5% | 14.0% |
| Allan Gray Namibia Balanced B | N$7.07bn | 22.8% | 15.6% | 15.6% | 12.2% | 14.2% | 10.5% |
| M&G Namibian Inflation Plus A | N$2.49bn | 10.7% | 6.4% | 10.3% | 7.7% | 10.2% | 8.5% |
| NAM Coronation Balanced Plus | N$1.67bn | 11.3% | 14.8% | 13.5% | 12.9% | 10.6% | 10.9% |
| Ninety One Namibia Managed R | N$6.52bn | 18.2% | 15.4% | 12.7% | 12.9% | 10.7% | 10.9% |
| STANLIB Namibia Inflation Plus A | N$0.77bn | 12.7% | 6.4% | 10.0% | 7.7% | 10.2% | 8.5% |
| Old Mutual Namibia Managed | N$1.10bn | 14.4% | 15.4% | 12.7% | 12.9% | 10.9% | 10.9% |
| Aggressive | |||||||
| Old Mutual Namibia Growth | N$0.90bn | 30.4% | 23.6% | 20.0% | 16.1% | 14.5% | 13.0% |
Performing against benchmark (within 0.5pp or above)Underperforming (0.5-2.0pp below)Not performing (more than 2.0pp below)
The takeaway
The economy is at a turning point: mining is shrinking, but services and a recovering secondary sector are picking up the slack, and inflation stays low. For investors, the gap between the best and worst risk-adjusted funds keeps widening. Speak to a Liberty advisor about which fund profile fits your goals.
Source: Solomon Kint, Financial Research Analyst, High Economic Intelligence (HEI).