Observer Money

CHAMWE KAIRA The cloud services, software and applications remain the largest category of digitally delivered services expenditure, with a value of N$165.1 million in 2023. The Bank of Namibia said in its December quarterly bulletin that this translates into a share of 27% of total digitally delivered services. “This indicates the use of storage space from major suppliers of cloud services such as Google, Microsoft, Amazon Web Services, and Apple, as well as the purchase of applications such as ZOOM that picked up due to the remote working following the pandemic, as well as the use of various software. Most…

CHAMWE KAIRA Bannerman Energy Ltd, the mining company listed on the Australian Stock Exchange and the Namibia Stock Exchange, has announced significant recent progress in the construction at its Etango uranium project in the Erongo Region. Bannerman said the key outcomes include key bulk earthworks and construction power contracts on schedule, with the first blast completed on the primary crusher site. The company said the construction of the water supply and ancillary storage dam was completed, delivering seamless continuity for bulk earthworks in progress. The manufacture of high-pressure grinding rolls (HPGR) tertiary crushers, a critical long lead item, is running…

Niël Terblanché Kenneth Simataa Matomola, the chief executive officer of the Namibia Financial Institutions Supervisory Authority (NAMFISA), has been appointed to the Executive Committee (EXCO) of the International Association of Insurance Supervisors (IAIS). Matomol’s appointment was announced during the IAIS Annual General Meeting held on 5 December in Cape Town, South Africa. Victoria Raimond, spokesperson for NAMFISA, reiterated the implication of the IAIS as a global standard-setting body. "The IAIS represents over 200 jurisdictions and accounts for 97% of the world’s insurance premiums. Its mission is to promote effective and globally consistent supervision of the insurance industry, ensuring fair, safe,…

Niël Terblanché The LEWCOR Group has cemented its position as a key player in Namibia’s mining and construction industries with the addition of the 100th articulated dump truck ADT to its fleet. LEWCOR’s chief executive officer, Helmuth Lewis, said the addition of the ADT is a demonstration of the company’s dedication to innovation, economic contribution, and the betterment of Namibia’s future. “This milestone emphasizes the company’s 36-year legacy of contributing to Namibia’s economic development through cutting-edge equipment and operational excellence,” Lewis said. Articulated Dump Trucks, known for their superior traction and stability, are critical to Namibia's challenging terrains, facilitating the…

CHAMWE KAIRA RMB Namibia acted as arranger to First National Bank of Namibia Ltd. (FNB Namibia) for the issuance of N$500 million Tier 2 Capital Notes off their NSX-listed Domestic Medium-Term Note (DMTN) Programme. This issuance represents the first Basel III-compliant notes to be placed in the Namibian market, and the successful outcome sets a precedent for future issuances, RMB said. Leading the process end to end, RMB said it provided advice with regards to the establishment of the underlying terms of the notes, the DMTN Programme, the arrangement, as well as the facilitation and listing of the bonds in…

CHAMWE KAIRA MTC is considering the options available, which include a review of the Communications Regulatory Authority of Namibia (CRAN’s) decision on the NamPower, MTC and Telecom that concluded a dark fibre tripartite agreement in 2012. MTC submitted a dispute adjudication request to CRAN, citing exclusivity and non-competitive behaviour. “CRAN has declared certain sections of the Tripartite agreement void and unenforceable, rendering the agreement unenforceable. Should the CRAN decision stand, MTC would be liable for increased rates to continue leasing the dark fibre. The value of this expected increase in rates is not yet determinable,” according to the 2024 Integrated…

CHAMWE KAIRA The final consumption expenditure in nominal terms stood at N$59 billion during the third quarter of this year, the Namibia Statistics Agency said in Gross Domestic Product (GDP) figures. Final consumption expenditure is made up of household final consumption expenditure, while government final consumption expenditure is made for collective consumption or for individual consumption in the form of social transfers in kind to households. In real terms it increased by 1,8 % from a growth of 0,6% witnessed in the third quarter of 2023. Private final consumption expenditure in nominal terms increased to N$45,1 billion during the third…

The International Air Transport Association (IATA) released data for October 2024 global passenger demand, which saw the total demand, measured in revenue passenger kilometers (RPK), going up 7,1% compared to October 2023. Total capacity, measured in available seat kilometers (ASK), was up 6,1% year-on-year. The October load factor was 83,9% (+0,8ppt compared to October 2023). International demand rose 9,5% compared to October 2023. Capacity was up 8,6% year-on-year and the load factor rose to 83,5% (+0,6ppt compared to October 2023). Domestic demand rose 3,5% compared to October 2023. Capacity was up 2% year-on-year and the load factor was 84,5% (+1.2ppt…

Element Six, part of De Beers Group, is establishing a transformational technology solutions business, leveraging synthetic diamonds to unlock new opportunities in high value industries such as quantum technologies, semiconductors and water purification. The De Beers Group has diamond mining operations in Botswana, Canada, Namibia and South Africa. Last month, Element Six, a world-leading synthetic diamond company and part of the De Beers Group, announced an investment in Lightsynq, a new quantum interconnect startup founded by Harvard PhDs and former research leads at the AWS Center for Quantum Networking. This is just one example of how Element Six is shaping…

CHAMWE KAIRA Heightened trade tensions between the US and China, exacerbated by the Trump presidency, present significant risks to Namibia, whose economy is closely tied to its two largest trading partners, China and South Africa. Namibia's reliance on these economies for trade, investment, and macroeconomic stability creates vulnerabilities to global disruptions. Namibia exports key commodities such as uranium, diamonds, and gold to China, and any slowdown in Chinese export momentum due to US tariffs could dampen demand for these materials. This would likely lead to reduced export revenues and increased commodity price volatility, according to a report by Simonis Storm…