Observer Money – Page 11 – Windhoek Observer

14 Aug

Angola’s economic woes felt by Oshikango

Observer Money

Chamwe Kaira Angola’s economic downturn has negatively affected northern Namibia for nearly five years, according to Bank of Namibia (BoN) deputy governor Ebson Uanguta. He said this in response to a question by Observer Money on the impact of Angola’s economic situation on Namibia. “When trade was thriving, Oshikango was a booming town, but business activities have since slowed down. The impact has already been felt for a number of years now, there is nothing new,” Uanguta said. BoN projects Angola’s economic growth to slow to 2.4% in 2025 and 2.1% in 2026, down from 4.5% in 2024. The slowdown…

14 Aug

B2Gold attempts to make Otjikoto green again

Observer Money

Chamwe Kaira B2Gold has rehabilitated 19% of the disturbed footprint at its Otjikoto Mine, covering 165 hectares. The company shared the update at the recent Mining Expo and Conference in Windhoek. It has planted 10 100 seedlings from 18 indigenous species and restored about 20 hectares with grass species and soil-enhancing material. B2Gold said its non-obligatory rehabilitation fund ensures that rehabilitation obligations will be met by the end of the mine’s life. The mine has also reduced Heavy Fuel Oil (HFO) consumption by more than three million litres a year. From 2014 to 2018, the Otjikoto Power Plant ran entirely…

14 Aug

Standard Bank’s interest income hits N$1.1 billion

Observer Money

Chamwe Kaira Standard Bank Namibia Holdings reported a 2.9% increase in interest income to N$1.1 billion for the six months ended 30 June. The growth was supported by an 8.8% rise in gross loans and advances to customers and an 18.4% increase in other interest-earning assets. Lending activity started slower than expected, which limited the impact on average balances, a key driver of net interest income. A cumulative 100 basis point cut in the repo rate also reduced margins. Non-interest revenue rose by 3.6% to N$792.7 million, driven by higher client activity and greater use of digital services. Net fee…

14 Aug

Navachab plans N$4 billion expansion

Observer Money

Chamwe Kaira Navachab Gold Mine at Karibib plans to spend N$4 billion on an exploration drilling programme over the next four years. The managing director of Navachab Gold Mine, George Botshiwe, said the ore body is now too deep for open-pit mining. The mine also produces silver as a by-product. Opened in 1989 with a planned lifespan of nine years, the mine has since expanded its processing capacity but has faced challenges such as limited water, power supply, and funds. Located 10km from Karibib and 180km west of Windhoek, Navachab has been owned by QKR NMH since acquiring it from…

14 Aug

Electricity and water sector poised for 12.3% rise

Observer Money

Chamwe Kaira Electricity and water supply is expected to grow by 12.3% in 2025, up from 2.3% in 2024, according to the Bank of Namibia’s August economic outlook. The increase is driven by favourable rainfall, which will boost hydroelectric generation at the Ruacana Power Station and more solar power from projects such as the Otjikoto Biomass Plant and Rosh Pinah’s 70 MW PV facility. The central bank said, “Rising reservoir levels are also expected to contribute to a stronger performance in the water supply component. Growth in this subsector is expected to remain elevated over the medium term, in line…

14 Aug

FNB revises its inflation outlook

Observer Money

Chamwe Kaira Inflation eased to 3.5% year on year in July, down from 4.6% in July 2024 and slightly below the 3.7% recorded in June 2025. This is the second time this year inflation has reached 3.5%, continuing the disinflationary trend that began in October 2023. The slowdown was driven by last year’s high base and reduced cost pressures across key expenditure categories. FNB Namibia said it has revised its inflation forecast downward. The bank now expects inflation to ease to 3.5% in August and remain below 4% for the rest of the year, ending at 3.7% in December, compared…

14 Aug

SARB expected to cut lending rate in 2026

Observer Money

Chamwe Kaira FNB Namibia economist Helena Mboti expects the South African Reserve Bank (SARB) to cut its repo rate by 25 basis points in the first quarter of 2026. The SARB’s 25 bps cut on 31 July 2025 was in line with FNB’s expectation and does not change its baseline view. Mboti said that if the SARB adopts a more aggressive cutting cycle, especially one that eliminates or inverts the rate differential, the Bank of Namibia would likely respond in a similar manner. “Likewise, a sharp unexpected rise in global inflation-driven factors like tariff hikes or global oil price shocks…

14 Aug

Monetary committee leaves repo rate at 6.75%

Observer Money

Allexer Namundjembo The Monetary Policy Committee (MPC) of the Bank of Namibia (BoN) has maintained the repo rate at 6.75%. The decision was made during its fourth bimonthly meeting of 2025, held on 11 and 12 August. The committee said the decision aims to safeguard the peg between the Namibian dollar and the South African rand while supporting domestic economic activity. This follows the South African Reserve Bank’s decision in July to cut its repo rate to 7.00%, reducing the interest rate gap between Namibia and South Africa to 25 basis points. “After a thorough review of domestic, regional, and…

14 Aug

Standard Bank counts on supportive economic climate

Observer Money

Chamwe Kaira Standard Bank Namibia Holdings expects the economy to remain relatively favorable for business, despite persistent global and local risks. Internationally, growth may be held back by high debt levels, geopolitical tensions, and weak external demand. “Nonetheless, easing global inflation and a gradual pivot towards more accommodative monetary policies may offer some relief to financial markets and emerging economies,” the group said in its results for the six months ended 30 June. The profit after tax rose from N$505 million in the same period last year to N$556 million. Locally, the bank sees growth supported by the recovery of…

14 Aug

Petrofund inks two new oil and gas training deals

Observer MoneyThe Petroleum Training and Education Fund (Petrofund)

Justicia Shipena The Petroleum Training and Education Fund (Petrofund) has signed two new Memoranda of Understanding (MoUs) to boost skills development in the country's oil and gas sector. The agreements were signed during the ongoing Namibia Oil and Gas Conference in Windhoek. One MoU was with global engineering firm McDermott, and the other was with FirstRand Namibia, which includes RMB Namibia, FNB Business, and FNB Retail. The MoU with FirstRand Namibia marks the first local contribution by a Namibian business to Petrofund for upstream oil and gas capacity development. Petrofund's chief executive officer, Nillian Mulemi, said the initiative came entirely…