Observer Money – Page 42

05 Sep

Beef, charcoal exports under threat

info_e12wt4csObserver MoneyEuropean Union (EU)’s Deforestation Regulation, Namibian Agriculture Union

CHAMWE KAIRA The European Union (EU)’s Deforestation Regulation to be effective as of 1 January 2025, is a big threat to Namibia’s beef and charcoal exports, the Namibian Agriculture Union has warned. The expansion of agricultural land is seen as the main driver behind deforestation, desertification and a loss of biodiversity. It is linked to the production of commodities such as cattle, wood, cocoa, soya, palm oil, coffee, rubber, and some of their derivative products, such as leather, chocolate, tires or furniture. The NAU said the EU is a major economy and consumer of commodities linked to these negative practices…

05 Sep

Exports worth N$5.3 billion left by sea in July

info_e12wt4csObserver Money

CHAMWE KAIRA Goods worth of N$5.3 billion, representing 53.3% of total exports left the country by sea in July. The basket of exports via sea comprised mainly of uranium, fish and nickel ores and concentrates. Goods exported via road accounted for 28.6% of total exports, of which its export basket was mainly made up of petroleum oils, fish and live animals. Lastly, air transportation accounted for 18.1% with non-monetary gold and precious stones (diamonds) being the highest valued commodities transported via the respective mode. In terms of volume, a total of 342 476 tons of goods left the country, representing…

05 Sep

International reserves rise to N$60.8 billion

info_e12wt4csObserver MoneyBank of Namibia, Customer Foreign Currency (CFC), Net Foreign Assets

CHAMWE KAIRA The stock of international reserves rose by 5.5% to N$60.8 billion at the end of July, the Bank of Namibia announced. The increase in international reserves was on the back of higher SACU receipts, as well as Customer Foreign Currency (CFC) placements. This level of foreign reserves translated into 4.1 months of import cover, exceeding the international benchmark of 3 months. Notably, the import cover, excluding imports of oil exploration and appraisal activities, stood at 4.9 months at the end of July, relative to 4.6 months recorded at the end of June. Furthermore, the banking industry liquidity position…

05 Sep

Another repo rate cut projected

info_e12wt4csObserver Moneyfinal GC24 switch, Namibian Stock Exchange

CHAMWE KAIRA Namibia experienced a dynamic month in August in the fixed income market, characterised by fluctuating demand levels and interest rate reductions that have influenced yields, latest financial statistics have shown. The Bank of Namibia conducted five treasury bill auctions, two primary bond auctions, and completed the final GC24 switch. Secondary trades on the Namibian Stock Exchange (NSX) saw an overall decline, although there was a notable increase in trading volumes for the GC27 bond. Interest rates, which had been raised from 3.75% during the pandemic to a peak of 7.75% by July 2023, were reduced on August 14th…

05 Sep

Andrada transforms into multi-mineral producer

info_e12wt4csObserver MoneyAndrada Mining, multi-mineral producer

CHAMWE KAIRA Andrada Mining has transformed itself into a multi-mineral producer during the 2024 financial year, achieving a remarkable double-digit increase in tin concentrate production and successfully produced its first commercial batch of tantalum, solidifying our position as a key player in the critical metals space, chairman, Glen Parsons said. During the same period, Andrada has implemented a water recycling programme that reduced its environmental impact. “We also maintained a 99% Namibian workforce, demonstrating our commitment to the local community. Andrada's vision is deeply intertwined with our identity as a proudly Namibian company with significant future growth and value potential,”…

05 Sep

Inflation to stabilise at 4.9%

info_e12wt4csObserver MoneyBank of Namibia, Repo rate, Simonis Storm Security

CHAMWE KAIRA Simonis Storm Security projections suggest that inflation will stabilise at around 4.9% by the end of the year. The Bank of Namibia's monetary policy committee decided to implement a 25 basis point rate cut at its last meeting, reducing the repo rate to 7.50% and the prime rate to 11.25%. Simonis said although these rates remain relatively elevated, the reduction offers some relief to Namibian households and businesses by lowering borrowing costs. “Despite this rate cut, we anticipate that private sector credit extension growth will remain modest in the near term. This is due to the lag effect…

05 Sep

Osino finally in Chinese hands

info_e12wt4csObserver MoneyHeye Daun, Osino Resources Corp, Shanjin International Gold of China

CHAMWE KAIRA Osino Resources Corp has announced that it has been finally acquired by Shanjin International Gold of China for cash consideration of 1.90 Canadian dollars (N$25) for each share. The deal was first announced in February and will see, Shanjin pay 368 million Canadian dollars (N$4.8 billion) to take over Osino. Shanjin intends to cause Osino to delist the Osino Shares from the TSX Venture Exchange, to submit an application for it to cease to be a reporting issuer, and to otherwise terminate its public company reporting requirements as soon as possible. Osino is focused on the fast-tracked development…

05 Sep

Shareholding changes at Deep Yellow

info_e12wt4csObserver MoneyJohn Borshoff, Tumas project, Vanguard Group of Australia

CHAMWE KAIRA The Vanguard Group of Australia has become a substantial shareholder in Deep Yellow the company that is developing the Tumas project in the Erongo Region after it acquired 48 million shares with a voting right of 5.003%. The development was confirmed by Deep Yellow Managing Director and CEO, John Borshoff. Vanguard Group is the manager of various Mutual funds and accounts and in that capacity has the power to dispose of the shares. Deep Yellow is progressing its dual-pillar strategy to establish a multi-mine company with capacity to produce 10 million pounds of uranium per annum. The company…

05 Sep

Short-term insurance shields small business owners

info_e12wt4csObserver MoneySmall business owners

JOHANNES HESEKIEL Small companies experience various challenges in the constantly evolving business landscape of the present day. There are numerous uncertainties that arise during the journey, ranging from managing daily tasks to navigating the intricacies of market demands. Small business owners are most concerned about unforeseen incidents that could interrupt their operations and put their assets at risk. Short-term insurance serves as a safeguard, protecting assets and ensuring business operations continue smoothly. Short-term insurance, also known as general insurance, shields businesses from possible financial losses. Temporary insurance plans usually last for a specific period, usually up to a year, and…

01 Sep

NBL exits O&L Group retirement fund

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Martin Endjala The Namibia Breweries Limited (NBL) will exit the Ohlthaver and List (O&L) Group as of 1 October. This was announced last week by O&L in a notice to the employees of NBL. “We wish to inform you that NBL will exit the O&L retirement fund as of 1 October. As such, all NBL employees will no longer form part of the fund as from this date,” read the notice. NBL is no longer part of the O&L Group of companies following its acquisition by Heineken International in a transition that was approved in April 2023. The group said…