Observer Money

Chamwe Kaira  Navachab Gold Mine at Karibib plans to spend N$4 billion on an exploration drilling programme over the next four years.  The managing director of Navachab Gold Mine, George Botshiwe, said the ore body is now too deep for open-pit mining. The mine also produces silver as a by-product. Opened in 1989 with a planned lifespan of nine years, the mine has since expanded its processing capacity but has faced challenges such as limited water, power supply, and funds.  Located 10km from Karibib and 180km west of Windhoek, Navachab has been owned by QKR NMH since acquiring it from…

Chamwe Kaira  Electricity and water supply is expected to grow by 12.3% in 2025, up from 2.3% in 2024, according to the Bank of Namibia’s August economic outlook.  The increase is driven by favourable rainfall, which will boost hydroelectric generation at the Ruacana Power Station and more solar power from projects such as the Otjikoto Biomass Plant and Rosh Pinah’s 70 MW PV facility. The central bank said, “Rising reservoir levels are also expected to contribute to a stronger performance in the water supply component. Growth in this subsector is expected to remain elevated over the medium term, in line…

Chamwe Kaira  Inflation eased to 3.5% year on year in July, down from 4.6% in July 2024 and slightly below the 3.7% recorded in June 2025. This is the second time this year inflation has reached 3.5%, continuing the disinflationary trend that began in October 2023. The slowdown was driven by last year’s high base and reduced cost pressures across key expenditure categories. FNB Namibia said it has revised its inflation forecast downward. The bank now expects inflation to ease to 3.5% in August and remain below 4% for the rest of the year, ending at 3.7% in December, compared…

Chamwe Kaira  FNB Namibia economist Helena Mboti expects the South African Reserve Bank (SARB) to cut its repo rate by 25 basis points in the first quarter of 2026. The SARB’s 25 bps cut on 31 July 2025 was in line with FNB’s expectation and does not change its baseline view. Mboti said that if the SARB adopts a more aggressive cutting cycle, especially one that eliminates or inverts the rate differential, the Bank of Namibia would likely respond in a similar manner.  “Likewise, a sharp unexpected rise in global inflation-driven factors like tariff hikes or global oil price shocks…

Allexer Namundjembo The Monetary Policy Committee (MPC) of the Bank of Namibia (BoN) has maintained the repo rate at 6.75%.  The decision was made during its fourth bimonthly meeting of 2025, held on 11 and 12 August. The committee said the decision aims to safeguard the peg between the Namibian dollar and the South African rand while supporting domestic economic activity.  This follows the South African Reserve Bank’s decision in July to cut its repo rate to 7.00%, reducing the interest rate gap between Namibia and South Africa to 25 basis points. “After a thorough review of domestic, regional, and…

Chamwe Kaira  Standard Bank Namibia Holdings expects the economy to remain relatively favorable for business, despite persistent global and local risks. Internationally, growth may be held back by high debt levels, geopolitical tensions, and weak external demand. “Nonetheless, easing global inflation and a gradual pivot towards more accommodative monetary policies may offer some relief to financial markets and emerging economies,” the group said in its results for the six months ended 30 June. The profit after tax rose from N$505 million in the same period last year to N$556 million. Locally, the bank sees growth supported by the recovery of…

Nedbank Group has announced that it has entered into a binding agreement to acquire 100% of fintech innovator iKhokha Proprietary Limited for a cash consideration of approximately N$1.65 billion (subject to certain adjustments upon conclusion), a move that marks a significant milestone in Nedbank’s strategy to deepen its support for small and medium-sized enterprises (SMEs) through digital innovation and inclusive financial services.  The iKhokha transaction is subject to customary regulatory approvals and is expected to conclude in the coming months. The acquisition of iKhokha will strengthen and scale Nedbank’s positioning in the SME market.  The acquisition will result in iKhokha…

Chamwe Kaira  The Namibian economy is expected to grow by 3.5% in 2025, according to the Bank of Namibia’s August economic outlook. “The domestic economy is estimated to expand marginally by 3.5% in 2025 and by 3.9% in 2026,” said Kazembire Zemburuka, director of strategic communications and international relations at the Bank of Namibia. He said growth is projected to slow in 2025 before improving in 2026, with GDP growth moderating from 3.7% in 2024  to 3.5% in 2025.  The slowdown is mainly due to a contraction in primary industries, particularly the livestock subsector, as reduced herd sizes continue to…

Chamwe Kaira  Proflight Zambia will launch flights to Windhoek on 3 March 2026, expanding its regional network.  The service will operate three times a week, on Tuesdays, Fridays, and Sundays,linking Lusaka and Windhoek via Livingstone.  The Lusaka–Windhoek leg will include a 30-minute stopover, during which passengers will remain on board.  The Livingstone–Windhoek route will operate as a direct flight. Morning connections from Ndola to Windhoek and evening connections from Windhoek to Ndola, Solwezi, and Mfuwe will also be available. Proflight Zambia will be the only carrier offering direct flights on this route. “Proflight Zambia continues to invest in network expansion…