This study investigates credit activity among rural households in the Kavango and Caprivi regions of Namibia, challenging the common assumption that little lending occurs in communal areas. Based on survey data from 321 households, the findings reveal that two‑thirds of respondents accessed at least one loan in the past 2–3 years, primarily through informal sources. These loans typically small, short-term, interest‑free, and provided by friends or relatives are used mainly for food and personal needs, with less than 20% directed toward farming. Despite practising diversified agriculture, farmers in both regions remain severely undercapitalised, investing minimally in productivity‑enhancing technologies. Restricted access to formal credit due to bank prejudices, lack of collateral, illiteracy, gender bias, and low incomes emerges as a major barrier to agricultural development. More than 90% of respondents expressed a desire to borrow in future, especially for crop production, livestock for ploughing, and small business ventures. Fieldwork simulations show that borrowers are willing to repay market‑related interest rates, indicating a viable opportunity for expanding formal agricultural lending. The study highlights a strong borrowing culture and recommends the introduction of small credit groups, with a focus on including women, and a pilot programme centred on community mobilisation and group formation.