Observer Money

Diamond prices showed a more moderate decline in October amid holiday demand and a reduction in rough supply. The RapNet Diamond Index (RAPI™) for 1-carat diamonds fell 2.2 percent, less than September’s 5.2 percent slump. The index for 0.30 carats dropped by 1.6 percent, 0.50 carats by 1.3 percent, and 3 carats by 0.4 percent. Prices for rounds showed positive trends following a year of declines. RAPI for 1-carat stones gained 0.1 percent between 24 October 24 and 1 November. While the index for 0.30-carat goods slipped 0.1 percent, that of 0.50-carat diamonds — the weakest category since the start…

The first World Salt Conference to take place in Africa was held in Swakopmund. The conference, saw delegates discuss the latest market trends and developments in the salt industry. The meeting was attended by more than 150 delegates from around the world, including representatives of salt mines, salt producers, logistics and shipping companies, engineering companies, and equipment suppliers. Andre Snyman, Managing Director of Walvis Bay Salt Holdings (Pty) Ltd, spoke to Observer Money about the Salt Conference, salt exports and trends in the industry. Walvis Bay Salt Holdings is the largest producer of solar sea salt in sub-Saharan Africa. The…

Chamwe Kaira The proposed extension of the country’s railway line from Grootfontein to Katima Mulilo has been deemed visible by the final feasibility study report, which was recently approved by Cabinet. According to the report prepared by MR Technofin Consultants Ltd of Canada, the Zambezi Extension Railway is viable from a technical, environmental, legal, financial, and economic standpoint. The railway line is expected to connect to Zambia’s and Botswana’s rail network, thereby providing direct access to regional railway traffic to the Walvis Bay Port. The Walvis Bay Corridor Group, said in the 2022/23 financial year that corridor cargo volumes entering…

The trade balance for Namibia is anticipated to maintain its persistent deficit. Namibia's current account maintains a deficit position, with a trade balance of N$3.3 billion, widened by 28.2 percent year on year in September. This underscores the ongoing trend of a persistent net financial outflow within the country's economic landscape, according to a report by Simonis Storm. The wider trade deficit was driven by a combination of lower trade volumes and import earnings outweighing export earnings, the report said. Exports amounting to N$7.8 million while the import bill was N$11.1 million in September. Namibia's status as a net importer…

Chamwe Kaira TransNamib transported a total of 297,636 metric tonnes of sulphuric acid in the year 2022, as announced by the company this week. This sulphuric acid plays a vital role in supporting the smelting operations at Dundee Precious Metals in Tsumeb. Abigail Raubenheimer, the Corporate Communications Manager, stated in an interview that TransNamib possesses the capability to transport various mining products. The range of minerals and metals that the company handles include copper concentrate, copper blister, manganese, coal, and yellow cake. She further noted, "We have established a strong relationship with the Namibia Chamber of Mines, particularly with its…

Chamwe Kaira Namibia exported fresh dates valued at N$2.6 million in September, which was destined to South Africa and Bangladesh. The Namibia Statistics Agency said over the entire period (September 2022 to September 2023), the value of fresh dates exported averaged N$10.3 million with the largest value of N$31 million recorded in February 2023 and the lowest values being recorded in September and December 2022 where no fresh dates were exported. On the demand side, during September, Namibia imported fresh dates valued at N$31 038 solely sourced from South Africa. In terms of trading blocks, Southern African Customs Union (SACU)…

African airlines saw their air cargo volumes decline by 0.1 percent in September, despite the strong growth of demand on the Africa-Asia trade lane (+12.8 percent). This was an improvement in performance compared to August (-3.5 percent). Capacity was 2.7 percent above September 2022 levels. This was contained in International Air Transport Association’s (IATA) latest analysis of the air cargo market based on traffic and capacity data collected in the respective regions during September. IATA said global air cargo markets, showing continuing demand recovery. It said global demand, measured in cargo tonne-kilometers (CTKs), increased by 1.9 percent compared to September…

Niël Terblanché Namibia's Ministry of Mines and Energy has granted permission for a one-off export of 6,000 tonnes of unprocessed lithium ore. This comes just weeks after a blanket ban was imposed on exporting and transporting the raw material. The go-ahead was given in a letter from Bryan Eiseb, the Executive Director of the Ministry of Mines and Energy, to the Inspector General of the Namibian Police, Lieutenant General Joseph Shikongo. This decision follows a high-level meeting between the mining ministry staff and the Namibian Police top brass, aiming to reconcile regulatory compliance with economic activity. The permission is specifically…

The Namibia Wildlife Resorts (NWR) this week declared itself debt-free, saying it was successfully settled all outstanding long-term and statutory debts, some of which date back to the company’s inception. NWR said it has paid up all statutory debts, including back taxes owed to the Namibia Revenue Agency. The total debt was N$93 million. Observer Money this week asked NWR Managing Director, Matthias Ngwangwama about being debt free, becoming profitable and paying dividends to the government. Ngwangwama said he is happy that the company has been able to pay off our long-term and statutory debts only two years after the…

Domestic debt has surged to N$8.7 billion, marking an upward revision from the initial projection of N$7.5 billion stated in the main budget. This adjustment is a response to several financial factors, including a N$579 million increase in the budget deficit, an additional cash requirement of N$273 million, and a N$323 million reduction in foreign borrowing. Consequently, the borrowing plan will be adapted accordingly. The domestic debt stock is anticipated to rise to N$114.5 billion, up from the earlier estimate of N$113.0 billion from the main budget. As a percentage of GDP, domestic debt is expected to remain relatively stable…