Big picture. Namibia's economy improved gradually but stayed fragile in May 2026, held back by global uncertainty and high energy costs. Inflation rose to 4.1%, business borrowing stayed cautious, and the outlook is weak but stable.
Why it matters
- Inflation rose to 4.1%. Up from 3.5% a year earlier, driven by food, fuel, transport, and electricity, squeezing low and middle-income households hardest.
- Fuel stayed elevated. Petrol and diesel were more than 10% above the same time last year. The Government cut fuel levies 50% and drew about N$1.3 billion from the National Energy Fund across April and May.
- Business investment stayed low. Corporate borrowing was subdued on high operating costs and weak profit expectations, even as household credit improved.
Macro indicators at a glance
- Private credit grew 4.8%: year-on-year in April, led by household mortgages and personal loans; business borrowing remained cautious.
- Trade deficit widened: to N$4.4bn in April, on strong demand for imported fuel, vehicles, and machinery against a mining-dependent export base.
- Markets turned defensive: investors leaned toward inflation-protecting assets, while demand for ordinary government bonds weakened.
- Policy stays cautious: the central bank is expected to prioritise price stability over rate cuts, with a gradual recovery dependent on lower global risks and stronger non-mining sectors.
Fund performance highlights
- Best 1-year return: Old Mutual Namibia Growth, 24.8% (level with its 24.8% benchmark).
- Best 5-year return: Allan Gray Namibia Balanced B, 14.7% annualised (vs 11.1% benchmark).
- Top conservative pick: Allan Gray Namibia Stable A, 11.8% annualised over five years vs a 6.2% benchmark.
- Furthest behind benchmark: STANLIB Namibia Managed A, 3.5pp below on five years (9.4% vs 12.9%), trailing on all three horizons.
Investment performance vs benchmark
Latest fund fact sheets, 31 May 2026.
| Fund | AUM | 1Y | 1Y BM | 3Y p.a. | 3Y BM | 5Y p.a. | 5Y BM |
|---|---|---|---|---|---|---|---|
| Money Market | |||||||
| STANLIB Money Market A | N$1.72bn | 6.9% | 7.3% | 7.8% | 8.0% | 6.8% | 7.0% |
| STANLIB CashPlus R | N$1.58bn | 6.2% | 7.3% | 7.5% | 8.0% | 6.6% | 7.0% |
| FNB Namibia Money Market A | N$2.84bn | 7.0% | 7.1% | 7.7% | 7.9% | 6.7% | 6.4% |
| Conservative | |||||||
| STANLIB Income A | N$1.50bn | 8.6% | 7.1% | 9.2% | 7.9% | 7.8% | 6.9% |
| Ashburton Namibia Income A | N$1.26bn | 7.3% | 7.1% | 10.0% | 7.9% | 9.7% | 6.9% |
| NAM Coronation Balanced Defensive | N$0.25bn | 8.3% | 6.8% | 11.0% | 7.1% | 9.6% | 7.8% |
| Allan Gray Namibia Stable A | N$0.58bn | 14.2% | 6.5% | 12.1% | 7.2% | 11.8% | 6.2% |
| Moderate | |||||||
| STANLIB Namibia Managed A | N$0.22bn | 14.7% | 18.0% | 12.4% | 14.5% | 9.4% | 12.9% |
| Allan Gray Namibia Balanced B | N$7.27bn | 20.3% | 15.0% | 15.3% | 12.7% | 14.7% | 11.1% |
| M&G Namibian Inflation Plus A | N$2.48bn | 10.2% | 7.1% | 10.6% | 7.8% | 10.4% | 8.6% |
| NAM Coronation Balanced Plus | N$1.67bn | 10.8% | 16.9% | 14.0% | 13.9% | 11.6% | 11.7% |
| Ninety One Namibia Managed R | N$6.58bn | 17.0% | 16.0% | 13.3% | 13.5% | 11.4% | 11.9% |
| STANLIB Namibia Inflation Plus A | N$0.76bn | 10.9% | 7.1% | 10.4% | 7.8% | 10.8% | 8.6% |
| Old Mutual Namibia Managed | N$1.12bn | 15.9% | 14.8% | 13.2% | 13.0% | 11.6% | 11.0% |
| Aggressive | |||||||
| Old Mutual Namibia Growth | N$0.88bn | 24.8% | 24.8% | 20.8% | 19.6% | 14.6% | 14.4% |
Performing against benchmark (within 0.5pp or above)Underperforming (0.5-2.0pp below)Not performing (more than 2.0pp below)
The takeaway
Growth is recovering slowly, but high fuel costs and cautious businesses are holding it back. For investors, quality risk-adjusted funds continue to separate from the pack. Speak to a Liberty advisor about positioning your portfolio for the months ahead.
Source: Gail Hailonga, Junior Economist, High Economic Intelligence (HEI).