Observer Money

Strauss & Co, Africa’s leading art auction house, has announced that they will be hosting a free valuation day in Windhoek on 29 April 2024. This event presents residents with an exclusive opportunity to have their artworks assessed and valued by experts. The valuation day will take place at The Stellenbosch Wine Bar and Bistro, Tasting Room, Bougain Villas, 320 Sam Nujoma Drive, between 14h00 and 17h00. Strauss & Co said whether you are looking to insure your collection, sell an artwork, or simply satisfy your curiosity, Strauss & Co offers a range of valuation methods tailored to client’s needs.…

ANGELIQUE PEAKE AND OLAVI HANGULA Implementing a robust local content policy in the oil and gas industry isn’t just about extracting resources; it is about empowering local economies and fostering sustainable growth. By prioritising local manufacturing and supporting sectors, we not only fuel industrial development but also cultivate a thriving ecosystem of opportunity and prosperity for generations to come. There has been significant talk surrounding the recent oil discoveries offshore the Namibian coast, sparking both excitement and disbelief. As reality begins to set in, it’s clear that strategic planning and collaboration among stakeholders is essential to maximise the benefits of…

Developments in the Namibian banking sector has pointed out that the sector remained profitable, liquid and adequately capitalised in 2023, despite a strained economic environment. Board chairperson of the Namibia Deposit Guarantee Authority, Ebson Uanguta said this week that the banking sector continues to record higher profitability levels, coupled with robust capital levels above prudential limits. Uanguta revealed that the sector’s common equity Tier 1 capital increased last year and stood significantly above the required 7% limit. The non-performing loan (NPL) ratio picked up slightly year-on-year and is nearing the trigger ratio of 6%, due to the high inflation and…

CHAMWE KAIRA The rise in civil servant wages and the tax reforms enacted on 1 March are likely to support disposable income and increase consumer spending, which will potentially drive demand-side inflation. In the 2024/25 budget, the government has budgeted N$35,4 billion for wages and benefits and this also includes a 5% increase for civil servants. The country has about 107 000 civil servants. “The downside risk to this view is the elevated interest rate environment which may dampen the impact of these demand-side inflationary pressures,” FNB Namibia economists Ruusa Nandago and Helena Mboti disclosed this week. The economists noted…

CHAMWE KAIRA Deep Yellow Limited, the Australian company that is developing the Tumas Project in the Erongo region has revealed its offer of fully paid ordinary shares under its Share Purchase Plan (SPP) received applications for a total of 36.8M shares totalling approximately 45 million Australian Dollars (A$). “We are delighted with the support shown by our shareholders to back us at this important time in the further development of our company. This SPP, plus the funds from the recently announced A$220M placement, together totalling A$250M, will support our growth strategy, the ongoing development of the flagship Tumas Project in…

Inflation maybe slowing in the country but this won’t reflect in shopping baskets. Inflation has dropped from an average of 5,9% in 2023 to 4.9% in 2024. But Simonis Storm Security noted that it is important to note that this does not necessarily translate to real gains, considering inflation levels still remain relatively high. “Moreover, there are potential risks to inflation, particularly in food prices, which could be worsened by the El Niño weather phenomenon, alongside elevated oil prices,” it said. Namibia is experiencing a more rapid slowdown in annual inflation than anticipated, with March seeing an annual inflation rate…

CHAMWE KAIRA Nictus Holdings Limited has disclosed that the first six months of the 2023 financial year, the group exceeded profits of the comparative period by 57%. The group said even within the high inflationary and interest rate environment, the group was able to increase retail sales and it is expected that retail sales continue on this trend. The insurance segment also exceeded premium expectations for the first six months of the year and will continue to do so. “The import strategies of the Group play a major role in the success achieved and will continue to do so in…

PATRICIA LOUW In the ever-evolving world of personal finance, understanding your credit bureau report is vital to making informed financial decisions. Your credit bureau report is a snapshot of your credit history, and it plays a crucial role in shaping your financial future. It is important to investigate the intricacies of credit bureau reports, exploring what they are, where to find them, the factors that influence your credit score, and actionable steps to improve your score. A credit report is a detailed record of your credit history compiled by credit reporting institutions called Credit Bureaus. These reports contain information about…

The Citrus Growers Association of Southern Africa has said citrus fruit quality for 2024 looks excellent, and the harvesting timing is expected to be normal. CEO Justin Chadwick said overall, an increase in export volume is expected. “This is a testament to the resilience of South African citrus growers, who produce more citrus under challenging circumstances, such as steep increases in input costs, load shedding, and deteriorating public infrastructure. This increase is also a result of younger trees coming into production across several regions.” The current prediction is that 37,9 million (15kg) cartons of lemons will be exported to key…

The prices of copper and zinc declined, while that of gold increased in 2023 over 2022. The average price of copper dropped by 3.8% to U$8490 per metric tonne in 2023. This was on the back of declining demand, especially from China. Meanwhile, zinc prices dropped by 23.8% to an average of US$2653 per metric tonne in 2023, chiefly attributed to weak demand, notably from China, Bank of Namibia statistics showed this week. On the positive side, the gold price increased by 7,9% to an average of US$1943 per ounce in 2023, mainly on the back of safe-haven demand driven…