The repo rate is now 7.00%. Here is what it costs you.

Andersen Namibia Weekly, Issue 1, 2026-10-29. Every week we take one development that matters to Namibian businesses, show what it means in money, and list the deadlines coming up.

On Tuesday 2026-10-28 the Bank of Namibia raised its repo rate by 0.25% to 7.00%. Banks set prime 3.5% above the repo rate, so prime moves from 10.25% to 10.50%. Most business overdrafts, property loans and vehicle finance in Namibia are priced off prime, which is why a decision taken at the central bank shows up on your bank statement within weeks.

This is the second rise this year. The repo rate stood at 6.50% from October 2025, went up to 6.75% in June 2026 and is now back at 7.00%, the level it last held at the end of 2024. For perspective, the peak of the last cycle was 7.75%, held from June 2023 to August 2024.

What it costs a real business

Take a Windhoek business with three prime linked facilities: an overdraft of N$2,000,000, a property loan of N$1,500,000 and vehicle finance of N$800,000. This is an illustration, not a client, but the balances are typical of a growing owner managed company.

A 0.25% rise on N$4,300,000 adds N$10,750 of interest a year, about N$896 a month. The overdraft alone carries almost half of it. The margin your bank charges above prime does not change the answer: whether you pay prime or prime plus 2%, the rise is the same 0.25% on the balance.

Interest on money borrowed to run a business is normally deductible against taxable income. At the 30% company tax rate, the after tax cost of that N$10,750 is closer to N$7,525. It is still money that leaves the business, and it repeats every year the rate stays where it is.

Where you will feel it first

Prime linked overdrafts and loans follow the new rate, so check the rate on your next bank statement. Fixed rate loans do not move until they come up for refixing, which makes this a good moment to note when each of yours does.

The second effect is on your customers. A household with a N$1,000,000 home loan at prime now pays about N$2,500 more a year, roughly N$208 a month. Spread across your customer base, that is money that would otherwise have gone to paying your invoices on time. If your debtors already run long, expect them to stretch further into December.

Five things to do this month

1. List every facility you have, whether it is prime linked or fixed, and the margin on each. Most owners are surprised by at least one.
2. Use collections to cut the overdraft. At an overdraft rate of 11.50% (prime plus 1%), every N$100,000 collected from debtors and used to reduce the overdraft saves about N$11,500 a year in interest.
3. Ask your bank to review the margin. A rate change is a natural time to have that conversation, especially if your trading has improved since the facility was granted.
4. Check contracts and price lists with annual escalations. If your costs are rising, your next escalation should reflect it.
5. Update your cash flow forecast for December and January, when many customers slow down and PAYE, VAT and provisional tax still fall due.

Coming up: deadlines and the economy

1. 20 November: PAYE and employer return for October.
2. 20 November: withholding tax on services withheld in October.
3. 25 November: VAT for two month periods ending October.
4. 9 December: the next Bank of Namibia rate decision.
5. 10 December: public holiday, Human Rights Day.

How we help

Our cash flow and debt review models every facility you hold at the new rate, shows where finance cost can be cut, and prepares the numbers for the conversation with your bank. Message "CASH" on WhatsApp +264 81 315 7942 or email info@na.andersen.com to book 30 minutes.

Sources: Bank of Namibia repo rate history and MPC calendar; NamRA tax guides. Example figures are Andersen Namibia calculations. More charts at Namibia in Numbers.