Observer Money

This week Observer Money speaks to Gys Joubert, Gondwana Collection Namibia CEO about business in the aftermath of Covid-19. Observer Money (OM): Describe Gondwana’s recovery from the Covid 19 pandemic? Gys Joubert (GJ): I would describe it as measured. We are grateful that tourism is returning on quite an aggressive trajectory, but the impact of COVID-19 will linger for years to come. We turned profitable in the second half of 2022 and the changes and decisions we made during COVID-19 are enabling our ability now to repay debt incurred during the crisis. (OM): What is the current state of the…

Motorists can expect local fuel price cuts to be announced in coming months, however this is based on several factors. Simonis Storm Securities said it seems that its initial forecast of reaching N$25 per litre for petrol and diesel by end of 2023 are too pessimistic at this point in time. However, the improved outlook remains conditional on global brent remaining flat to slightly negative and for the rand to appreciate, the firm said. Ministry of Mines and Energy has disclosed an over-recovery of N$1.11 per litre on diesel and an under-recovery of N$0.95 per litre on petrol. As customary,…

Hyphen Hydrogen Energy’s US$10 billion green hydrogen project in the //Kharas Region is eying to supply Europe by early 2028. This week, Hyphen Hydrogen Energy signed a Letter of Intent with Koole Terminals covering the proposed import of green ammonia into north-western Europe. Hyphen intends to supply its customers using the import terminal being developed by Koole Terminals, located in the Port of Rotterdam, Netherlands. Over the past year, Hyphen has signed Memorandums of Understanding (MoUs) targeting the supply of up to 750 000 tonnes of green ammonia annually. Marco Raffinetti, CEO of Hyphen Hydrogen Energy, said: “This agreement represents…

Martin Endjala The Ministry of Mines and Energy yesterday launched its new Fleet Management System in Windhoek. “This occasion undoubtedly represents a significant milestone in the management of the Ministry, and in the Government transport system, as it will enable us to improve and deliver basic services to all our people, especially those residing in widespread areas where our services are needed,” Deputy Minister Kornelia Shilunga said. Shilunga stated that the Ministry is committed to delivering services at the doorstep of communities, to ensure that they access basic services such as electricity, that can make a significant difference in their…

Hertta-Maria Amutenja The Financial Institutions and Markets Act of 2021 (FIMA) Technical Committee will be officially inaugurated by Finance Minister Iipumbu Shiimi next week. Wilson Shikoto, the Finance Ministry’s Spokesperson announced that Shiimi referred the Act, which has been experiencing issues with the preservation of retirement benefits, to a technical committee last year. “The Minister will inaugurate the technical committee for consultation. The committee is going to consult on the standard and regulations of FIMA. When people were concerned with the FIMA regulations last year, it was then suspended to allow enough time for consultations,” Shikoto said. The committee will…

Martin Endjala The Bank of Namibia has made a call to government that there is a need for Namibia to build competent and accountable institutions in order to ensure a level playing field for all actors operating in the energy industry. The central bank’s Governor Johannes !Gawaxab said that the integrity of government institutions is vital to ensure that Namibia maximizes the benefits of its oil industry. He was speaking at the 5th edition of the Namibia International Energy Conference, held under the theme, ‘Shaping the Future of Energy Towards Value Creation’. The conference drew policymakers, energy leaders, and industry…

The Joint Venture between China Energy International Group – Riminii Investments (Pty) Ltd, which was later incorporated into CERIM Lüderitz Energy (PTY) LTD emerged as the successful bidder from a bidding process and an extensive evaluation phase with an offered base electricity tariff of N$ 0.8785 per kilowatt-hour and a Fixed Annual Escalation Rate of 0.5%. This then led to NamPower signing a Power Purchase (PPA) and Transmission Connection (TCA) agreements with CERIM Lüderitz Energy (PTY) LTD for the development of the 50MW Lüderitz Wind Power Plant on a Build-Own-Operate Basis, and the associated transmission connection infrastructures required to connect…

The State of the Nation Address by President Hage Geingob provided an update on the green economy projects in the country. Namibia has pioneered a billion-dollar green hydrogen valley concept in sub-Saharan Africa, attracting in the process, over N$1.5 billion in grant funding.Around 93 Namibians will receive scholarships worth more than N$34 million pursue their Masters and TVET studies in areas related to the Synthetic Fuels industry. The President outlined that of the four pilot projects earmarked to receive more than N$500 million in grant funding to develop their concepts, more than N$120 million has been allocated to the Daures…

Daures Green Hydrogen Village in the Erongo Region expects to kick off its operations in October. The project will include the planting of carbon-free tomatoes. Daures expect to produce ammonia and hydrogen during the first quarter of 2024. Funding for the project worth, N$220 million, has come through a grant from the German Federal Ministry of Education and Research (BMBF), for a period of 18 months, through Southern African Science Service Centre for Climate Change and Adaptive Land Management (SASSCAL). In 2023, Daures Green Hydrogen signed its first offtake agreement with Zimbabwean ammonium nitrate fertilizer manufacturer, Sable Chemicals. The non-binding…

Development Bank of Namibia (DBN) has launched its inaugural Sustainable Finance Framework (SFF). The Framework is aligned with the four core components of the International Capital Market Association’s (ICMA) Green Bond Principles 2021, Social Bond Principles 2021, Sustainability Bond Guidelines 2021 as well as the Loan Market Association’s (LMA) Green Loan Principles 2023 and Social Loan Principles 2023. The Framework has seven green categories which aim to achieve the environmental objectives of climate change mitigation, sustainable use and protection of water and marine resources, protection and restoration of biodiversity and ecosystems and four social categories which aim to achieve the…