Observer Money

The Petroleum oils import bill increased by N$892 million in August, trade statistics have revealed. This increase was one of the leading causes that lead to the country’s trade balance standing at a deficit of N$4.9 billion compared to N$3.7 billion and N$4.1 billion recorded in July 2023 and August 2022. This was the largest deficit the country has recorded between August 2022 and August 2023. The other increases in imports were vessels imports, which increased by N$428 million, rotating electric plant increased by N$391 million, tubes and pipes of iron and steel increased by N$180 million and precious stones…

Observer Money talks to Alina Garises, communications manager at the Dundee Precious Metals Tsumeb (DPMT) about the company’s financial performance, its smelting forecast and the newly launched General Waste Management Facility. Observer Money (OM): Dundee Precious Metals Tsumeb (DPMT)’s turnover in 2022 was N$2.232 billion and a loss of N$839.4 million. When does DPMT forecast to break through and start making profit? Alina Garises (AG): The smelter is operating in a challenging global market environment. In order to ensure the long-term sustainability of the operation, the company launched a cost optimization and organisational efficiency program called the P300 project, which…

Chamwe Kaira Inflation in the northern regions of Namibia has seen a notable rise, primarily attributed to surging diesel and bread prices. The Namibia Statistics Agency classifies the northern regions, including Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi, as Zone 1 for inflation calculations. This region recorded the highest annual inflation rate of 6.1%, surpassing the other two zones. The Khomas region followed closely with the second-highest annual inflation rate at 5.2%. Meanwhile, Zone 3, which includes Kharas, Erongo, Hardap, and Omaheke regions, reported the lowest annual inflation rate at 4.6%. Analyzing the average retail…

Chamwe Kaira The registration of new businesses, which serves as a leading indicator for future activity in the economy increased by 6.2% during the second quarter of 2023 compared to the same period in 2022, figures released by the Bank of Namibia have shown. The increase was more reflected in the private company (Pty) Ltd category, which rose substantially by 34.1%. The close corporation category, which accounts for about 90% of the total number of new businesses registrations, increased marginally by 3.5%. During the second quarter, employment in the wholesale and retail sector increased slightly by 1.2%, while it decreased…

Simonis Storm anticipate that the trade deficit will continue to widen for the remainder of 2023. Mining and fishing are expected to play a vital role in boosting our export earnings, further driven by the depreciation of the rand, the firm has pointed out. Simonis said a concern however remains for the global demand of raw materials, especially given the resurfacing discussions of a possible economic recession. “On the flip side, our import costs are on the rise. The current weather conditions have shifted into an El Nino pattern, resulting in elevated temperatures and reduced rainfall, which poses a threat…

In its 30th year of existence, leading African upstream oil-and-gas event Africa Oil Week (AOW) has launched a bold new brand and mission, with a broader energy focus in line with the global energy transition and Africa’s evolving role. The event is evolving into a new platform, to be known as AOW: Investing in African Energy. It will provide a single, inclusive forum for investing in African energy, addressing the continent’s immediate energy needs, while driving dialogue to accelerate the clean-energy transition. “This is the perfect time to launch a bold new brand and mission,” says Yemi Ibidunni, Event Director…

Niël Terblanché President Hage Geingob, while on a proactive and forward-looking visit to the Erongo Region, gave a ringing endorsement of Namibia's commitment to the green industrial revolution. The President's tour on Wednesday encompassed various industrial facilities, offering a snapshot of the nation's rapid progression toward sustainable energy solutions. Expressing satisfaction with the nation's stride toward green industrialisation, President Geingob highlighted the cohesive approach by key stakeholders. Namibia's main ports, pivotal in advancing new green energy technologies, were particularly interesting to the President. "The newly discovered oil resources off our coast will be instrumental in our economic future. However, our…

The global recovery from the COVID-19 pandemic and Russia’s invasion of Ukraine remains slow and uneven, the International Monetary Fund has said. Despite economic resilience earlier this year, with a reopening rebound and progress in reducing inflation from last year’s peaks, it is too soon to take comfort, the Fund said. Economic activity still falls short of its pre-pandemic path, especially in emerging market and developing economies, and there are widening divergences among regions. Several forces are holding back the recovery. Some reflect the long-term consequences of the pandemic, the war in Ukraine, and increasing geo-economic fragmentation. Others are more…

Martin Endjala The Bank of Namibia (BoN) will now handle the licensing and regulation of payment service providers instead of sharing the responsibility with the Payments Association of Namibia (PAN). The move is in line with the recently promulgated Payment System Management Act 14 of 2023 (the PSM Act). The Deputy Governor of BoN Leonie Dunn, said the rationale for having a single regulator is to provide regulatory certainty, reduce the administrative load on payment service providers by eliminating the need to interact with two regulators, and bring the domestic national payment system in line with international best practices. She…