Observer Money – Page 109 – Windhoek Observer

07 Nov

Afreximbank close to deals with two local banks

Observer Money

CHAMWE KAIRA Afreximbank is currently considering facilities for two local banks, one for a letter of credit confirmation facility and a second one to act as a Trade Finance Intermediary and Local Administrative Agent. Gwen Mwaba, Managing Director for Trade Finance and Correspondent Banking, Global Trade Bank at Afreximbank explained in an interview that nominated trade finance intermediaries act as its local administrative agents in different African markets. She was speaking on the sidelines of the annual Afreximbank Trade Finance Seminar held in Windhoek. She said the Bank has been holding these seminars since 1999 and added that the idea…

07 Nov

Oil discoveries throw Namibia into spotlight

Energy, Observer Money

CHAMWE KAIRA The recently discovered oil fields offshore Namibia could potentially be one of the last big oil and gas discoveries in the world. Laurent Ruseckas, executive director, gas industry, Europe, the Middle East and Africa at S&P Global told Observer Money that Namibia maybe the last oil and gas giant find to be discovered. Namibia has become an oil exploration hotspot after several discoveries by oil majors including Shell and Total estimated at 2.6 billion barrels. He added that large fields are economic to manage because the unit prices are low. Ruseckas is a specialist on gas markets, gas…

07 Nov

Businesses will struggle with N$18 minimum wage

Observer Money

Business executive, Bärbel Kirchner, spoke to Observer Money on behalf of the Namibian Employers Federation (NEF) on the implications of the recently announced minimum wage of N$18 per hour. Observer Money (OM): The government has increased the national minimum wage for all Namibian workers to N$18 per hour, what impact will this have on members of the NEF?Bärbel Kirchner (BK): The Namibian Employers Federation (NEF) foresees significant challenges for employers due to the N$18 per hour minimum wage. Many businesses, particularly in sectors where profit margins are low, will struggle to accommodate this sudden increase. This may force employers to…

07 Nov

Intra Africa exports worth N$4,7 billion

Observer Money

CHAMWE KAIRA Namibia’s intra-trade within the African Continental Free Trade Area (AfCFTA) context, saw the country export goods worth N$4,7 billion in September. Over the same period, the country imported goods worth N$7,7 billion from the continent, Namibia Statistics Agency said. The N$4,7 billion intra-Africa exports represent 52,3% of world total whereas Intra-Africa imports of N$7,7 billion represents a share of 51,8% of world imports. On the African continent, Namibia’s exports were mostly absorbed by countries such as South Africa, Botswana, Zambia, DRC and Angola, while imports were mostly derived from the same countries except Angola but including Morocco and…

07 Nov

Reserves drop to N$57.1 billion

Observer Money

CHAMWE KAIRA The Bank of Namibia’s stock of international reserves decreased by 3,7% to N$57.1 billion at the end of September, the central bank announced. The decrease in international reserves was mainly due to Customer Foreign Currency (CFC) withdrawals and higher net commercial banks outflows which was driven by high foreign payments by customers. This level of foreign reserves translated into 3,9 months of import cover, exceeding the international benchmark of three months. Notably, the import cover, excluding imports of oil exploration and appraisal activities, stood at 4,6 months at the end of September, relative to 4,8 months recorded at…

07 Nov

Balancing fiscal responsibility with development

Observer MoneyGDP growth, Walvis Bay corridor

JOHN-MORGAN BEZUIDENHOUT Namibia is moving into her election period and there have been some levels of uncertainty around the country’s future economic and political paths. More specifically, multinationals are looking for policy certainty for long term hydrocarbon investments to be kick-started. Furthermore, the last year saw Namibian assets being favored due to economic tailwinds and governmental fiscal prudence. However, the government has fallen short on developmental and capital expenditure which could exacerbate inequality and prevent many Namibians from entering the formal economy. Another important factor to consider is that the region is viewing Namibia as a key logistical hub through…

07 Nov

BoN pushes digital transformation for cross-border payments

Observer Money

CHAMWE KAIRA Namibia is exploring an instant payment solution, officer in charge at the Bank of Namibia, Marsorry Ickua, told the Afreximbank Trade Finance Seminar held in Windhoek. The central bank official announced that over 70 countries are implementing Fast Payment Systems (FPS), and another 20 are in advanced stages. “The solution will position the country to benefit from reduced transaction costs and increased access for all segments of the population, including rural areas and the informal economy. The fast payment solution can be leveraged to enhance cross-border payments, boost trade, and provide greater financial inclusion. Ultimately, this should transform…

07 Nov

Repo rate expected to be cut further

Observer Money

CHAMWE KAIRA Simonis Storm anticipates a further 25 basis-point rate cut, bringing the repo rate to 7%, at the Bank of Namibia's Monetary Policy Committee (MPC) meeting in December. Simonis expects the Bank of Namibia to take a cautious approach, observing the effects of this easing before any further policy adjustments. Similarly, the South African Reserve Bank (SARB) will hold its next MPC meeting on 21 November, where Simonis expects a comparable 25 basis-point rate reduction. The current repo rate in Namibia is 7.25%, with a prime lending rate of 11.00%. While these levels remain elevated, the recent reduction offers…

07 Nov

NSX gets first oil trading company

Observer Money

CHAMWE KAIRA Reconnaissance Energy Africa Ltd has announced the dual-listing on the Namibian Stock Exchange and the renewal of Petroleum Exploration Licence 001 onshore Botswana, and an operational update with respect to its exploration activities on Petroleum Exploration Licence 073 onshore Namibia. Brian Reinsborough, President and CEO of the Company stated: “We are excited to be the first publicly traded oil and gas company listed on the NSX. ReconAfrica has the largest acreage position of any publicly traded pure play oil and gas exploration company operating onshore Namibia. We have also extended our licence in Botswana under favourable terms. Most…

07 Nov

Affordable housing key for sustainable development

Observer Money

CHRISTOFF BAUERNSCHMITT Affordable housing is one of the key aspects for development in Namibia and in response to the country's pressing housing needs, Old Mutual Namibia launched its Housing Fund in August 2024. With an initial capital of N$50 million, the initiative is set to provide critical financial support for affordable housing projects, aimed at addressing the growing demand for accessible and affordable housing in the country. The government set a national target in the Fifth National Development Plan of developing 20 000 houses over a four-year period and mandated the NHE to execute 5 000 houses of that target.…