Observer

Developments in the Namibian banking sector has pointed out that the sector remained profitable, liquid and adequately capitalised in 2023, despite a strained economic environment. Board chairperson of the Namibia Deposit Guarantee Authority, Ebson Uanguta said this week that the banking sector continues to record higher profitability levels, coupled with robust capital levels above prudential limits. Uanguta revealed that the sector’s common equity Tier 1 capital increased last year and stood significantly above the required 7% limit. The non-performing loan (NPL) ratio picked up slightly year-on-year and is nearing the trigger ratio of 6%, due to the high inflation and…

CHAMWE KAIRA The rise in civil servant wages and the tax reforms enacted on 1 March are likely to support disposable income and increase consumer spending, which will potentially drive demand-side inflation. In the 2024/25 budget, the government has budgeted N$35,4 billion for wages and benefits and this also includes a 5% increase for civil servants. The country has about 107 000 civil servants. “The downside risk to this view is the elevated interest rate environment which may dampen the impact of these demand-side inflationary pressures,” FNB Namibia economists Ruusa Nandago and Helena Mboti disclosed this week. The economists noted…

CHAMWE KAIRA Deep Yellow Limited, the Australian company that is developing the Tumas Project in the Erongo region has revealed its offer of fully paid ordinary shares under its Share Purchase Plan (SPP) received applications for a total of 36.8M shares totalling approximately 45 million Australian Dollars (A$). “We are delighted with the support shown by our shareholders to back us at this important time in the further development of our company. This SPP, plus the funds from the recently announced A$220M placement, together totalling A$250M, will support our growth strategy, the ongoing development of the flagship Tumas Project in…

Inflation maybe slowing in the country but this won’t reflect in shopping baskets. Inflation has dropped from an average of 5,9% in 2023 to 4.9% in 2024. But Simonis Storm Security noted that it is important to note that this does not necessarily translate to real gains, considering inflation levels still remain relatively high. “Moreover, there are potential risks to inflation, particularly in food prices, which could be worsened by the El Niño weather phenomenon, alongside elevated oil prices,” it said. Namibia is experiencing a more rapid slowdown in annual inflation than anticipated, with March seeing an annual inflation rate…

CHAMWE KAIRA Nictus Holdings Limited has disclosed that the first six months of the 2023 financial year, the group exceeded profits of the comparative period by 57%. The group said even within the high inflationary and interest rate environment, the group was able to increase retail sales and it is expected that retail sales continue on this trend. The insurance segment also exceeded premium expectations for the first six months of the year and will continue to do so. “The import strategies of the Group play a major role in the success achieved and will continue to do so in…

PATRICIA LOUW In the ever-evolving world of personal finance, understanding your credit bureau report is vital to making informed financial decisions. Your credit bureau report is a snapshot of your credit history, and it plays a crucial role in shaping your financial future. It is important to investigate the intricacies of credit bureau reports, exploring what they are, where to find them, the factors that influence your credit score, and actionable steps to improve your score. A credit report is a detailed record of your credit history compiled by credit reporting institutions called Credit Bureaus. These reports contain information about…