Observer Money

Chamwe Kaira Good rains have seen Namibia generating more local electricity in the past year. Local generation of electricity rose substantially on an annual basis largely due to higher water inflow into the Ruacana hydro-power plant. The local generation of electricity increased substantially by 33.8% annually during the second quarter of 2023. Bank of Namibia data attributed the increase partly due to improved water inflow into the Ruacana hydro-power plant during the 2022/23 rain season, resulting in a decline in imports of electricity by 12.1%. The units of electricity consumed increased by 17.1% during the second quarter, reflecting increased demand,…

Namib Desert Diamonds (Pty) Ltd (Namdia) has disclosed that its two properties in Windhoek were revaluated by an independent property valuator, resulting in a fair value loss of N$5.5 million for Erf 336, Klein Windhoek, and a fair value loss of N$2.5 million for Erf 337, Klein Windhoek. In terms of the revaluation of remainder of Erf No. 336 Klein Windhoek, Namdia said in the current period, this property had a market value of N$30.1 million as determined on 5 April 2023 by an independent property valuator, Ngonyofi Property Investments CC, resulting in a fair value loss of N$5,495,000 in…

Chamwe Kaira Diamonds production rose on a yearly basis by 8.8% to 617 780 carats during the second quarter of 2023, Bank of Namibia data revealed. The rise was attributed to more carats mined onshore owing to ongoing expansion of the mining area at the land operations as well as more carats mined offshore ascribed to additional output from the Benguela Gem, operated by Debmarine Namibia. The central bank said production of uranium rose on a yearly and quarterly basis during the second quarter, predominantly ascribed to base effects resulting from fewer water supply interruptions experienced during the quarter. Uranium…

This week Rene Werner, chairman of Poultry Producer Association (PPA) talks about the current bird flu outbreak in South Africa and its possible impact on Namibia since Namibia has banned imports from its southern neighbor. South Africa is currently experiencing an outbreak of the Highly Pathogenic Avian Influenza (HPAI) in commercial poultry. Werner pointed out that although closure of the border is not a new thing, the current closure is bad for South Africa because it has affected production farms, breeders and hatcheries, which could result in a longer recovery time for South Africa. Since 2017, when South Africa had…

Chamwe Kaira Nictus Namibia achieved the N$1 billion turnover in the year ended 30 June, a long-standing goal for the group and was last achieved in our 2014 financial year. Nictus said despite the recession that ensued, compounded by the Covid-19 pandemic, the company said it was grateful to have reached this target once again. Profit for the year was N$41 million compared to N$42 the previous year. Revenue stood at N$927 million compared to N$862 million the previous year. The Namibia Stock Exchange listed Nictus Namibia is the holding company of a group of companies, which retail motor vehicles,…

Namibia exported goods worth N$4.1 billion to Mozambique in the period 2015 to 2022, statistics by Namibia Statistics Agency revealed this week. The figures also revealed that on the demand side, goods amounting to N$1.7 billion over the same period were sourced from Mozambique. The export basket to Mozambique comprised mainly of fish, medicaments (including veterinary) and motor vehicles for the transport of goods whereas the import basket comprised of special commodities not classified according to kind, ‘electrical machinery and apparatus’ and milk. The Agency said in August 2023, Namibia exported goods worth N$4.5 billion to the whole of Africa…

Namib Desert Diamonds (Pty) Ltd (Namdia) has emphasized that its strategy of both procuring diamonds in US dollars from its suppliers and selling diamonds in US dollars to its customers serves as a natural safeguard against currency risk. The company operates with three bank accounts denominated in US dollars, exclusively for diamond trading purposes. In contrast, Namdia settles all its operational and tax expenses in Namibian dollars. This duality in currency exposure arises because the majority of the company's income is earned in US dollars, but it faces foreign currency risk when converting funds from its US dollar accounts into…

Chamwe Kaira The International Monetary Fund has called for an improvement in specialised statistical capacity that will ensure consistent and proper recording of oil and gas exploration and tracking its impact on the economy. The oil discovery is expected to create around 4200 jobs after the discovery in the past two years of two significant light crude oil discoveries in the Orange Basin, namely Venus and Graff. The Venus discovery alone ranks as the second-largest deep-water oil discovery in the world since 2015. A third oil find was declared in early March, as a result of Shell and QatarEnergy's successful…

African airlines had the weakest performance in August, the International Air Transport Association’s (IATA) latest analysis of the air cargo market based on traffic and capacity data has shown. IATA data showed a 4.7% decline in cargo volumes compared to August 2022. This was a significant decrease in performance compared to July (+2.3%). Notably, Africa–Asia routes declined by 1.1% in August following an 11.2% growth in July. Cargo capacity was 3.8% above August 2022 levels. Africa accounts for 2% of the global air cargo market. Internationally, IATA said year-on-year air cargo demand grew for the first time in 19 months.…

Martin Endjala The Chairperson and Chief Executive Officer of the Namibia Investment Promotion and Development Board (NIPDB), Nagula Uaandja, expressed that winning the bid to host the Africa Hospitality Investment Forum (AHIF) 2024 isn’t solely a triumph for Namibia but also a testament to its burgeoning potential. The forum, recognized as Africa's foremost tourism and hotel investment conference, promises to draw an array of distinguished international hoteliers, investors, financiers, and management companies. The event is slated for 25 - 27 June 2024 in Windhoek. Uaandja passionately voiced her belief that the AHIF 2024 presents a golden opportunity for Namibia's landscapes…