Observer Money – Page 6

22 May

Procurement board tackles TransNamib tender cancellation

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Chamwe Kaira The Central Procurement Board of Namibia says it is dealing with the government’s decision to cancel TransNamib’s plan to buy 23 new locomotives for N$1.7 billion. Johanna Kambala, Manager of Stakeholder Relations at the board, said the matter is sensitive and the board will respond to questions at an appropriate time. Minister of Works and Transport Veikko Nekundi confirmed that the locomotive tender had been cancelled due to concerns over sourcing from a single supplier. He said TransNamib now needs to come up with new timelines for the locomotive purchase. Earlier this year, TransNamib announced plans to buy…

22 May

Construction sector projected to expand by 8.5%

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CHAMWE KAIRA Namibia’s construction sector is projected to grow by 8.5% in 2025, making it the fastest-growing sector despite accounting for just 1.4% of GDP in 2024. This growth is driven by monetary easing, increased public infrastructure investment, and renewed private sector confidence. Simonis Storm Securities said total output is expected to reach about N$4.3 billion. Growth will focus on residential developments, commercial real estate, and government capital projects. Since late 2024, the Bank of Namibia has cut interest rates by 100 basis points, easing financing conditions. Another rate cut is expected in the second half of 2025. Lower rates…

22 May

FNB lowers 2025 inflation forecast to 3.9%

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CHAMWE KAIRA FNB Namibia economist Helena Mboti said FNB now expects inflation to ease to 3% year-on-year in May. The annual average inflation for 2025 is forecast at 3.9%, slightly below the earlier projection of 4.2%. “Our updated forecast reflects lower-than-expected pressure from housing and utilities, while other assumptions remain broadly unchanged. Although housing and rent prices are expected to remain elevated, the utilities outlook has improved. We had anticipated an electricity tariff increase of over 8%, assuming limited fiscal capacity to subsidise national tariffs for a second consecutive year,” Mboti said. NamPower’s announcement of a more moderate 3.8% increase,…

22 May

Consumers are preferring fuel-efficient cars

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CHAMWE KAIRA Namibian car buyers are shifting their focus from luxury and performance to affordability, fuel efficiency, and practicality. Simonis Storm Securities says this trend is creating space for new brands, especially Chinese manufacturers, to enter the market as some established European brands lose ground. “This evolution presents new opportunities for local dealerships, financiers, and service providers to adapt their offerings in line with shifting consumer expectations, focusing more on cost-conscious packages, servicing support, and competitive financing models tailored to the growing mid-tier vehicle segment,” Simonis Storm Securities said. Vehicle sales data for April 2025 show a strong preference for…

22 May

Sanlam, Tyme Bank form joint venture

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Sanlam has announced that Sanlam Life, Sanlam Personal Loans Proprietary Limited (SPL) and Tyme Bank Limited have entered into agreements which will result in the establishment of a joint venture focused on unsecured personal loans with an embedded credit life offering. The establishment of the joint venture will be subject to the fulfilment of certain suspensive conditions. SPL provides unsecured personal loans of between R5000 and R300000 to qualifying individuals on repayment terms of 12 months to six years at a fixed interest rate. The SPL loan book size was R5 billion as at 31 December 2024. Tyme Bank is…

22 May

Kimberley Process marks ‘breakthrough’ in expanding definition

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The World Diamond Council (WDC) has welcomed the meaningful progress made towards expanding the Kimberley Process definition of conflict diamonds after a successful week of open and productive dialogue at the 2025 Intercessional in Dubai. The meeting, hosted by the UAE and current KP Chair Ahmed Bin Sulayem, marked a significant breakthrough in seeking to expand the definition of conflict diamonds after years of discussion. The current definition, established over two decades ago, primarily addresses diamonds financing rebel movements against legitimate governments. However, the evolving nature of conflicts necessitates a broader scope. The African Diamond Producers Association (ADPA), representing 15…

20 May

Entrepreneurs honoured at DBN 2025 business awards

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Justicia Shipena Blue Crane Safaris Namibia CC, OLC Arandis Solar Energy Corporation, and Lizwise Investment emerged as top winners at the Development Bank of Namibia’s 2025 Good Business and Innovation Awards, held on Monday evening at the Windhoek Country Club and Resort. The event marked two decades of celebrating Namibian entrepreneurship and innovation. Winners were recognised across three key categories: Small and Medium Enterprises (SMEs), Large Enterprises, and the DBN Innovation Award. Blue Crane Safaris Namibia CC was named winner in the SME category, with Ongula Homestead Group as first runner-up. In the Large Enterprise category, OLC Arandis Solar Energy…

15 May

Govt eyes new eurobond

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Chamwe Kaira The government is considering issuing a new Eurobond or seeking a syndicated facility in 2026. However, analysts have urged caution due to the country’s heavy exposure to US dollar- and euro-denominated debt and the ongoing volatility in global bond markets. Simonis Storm Securities warned that any new issuance should be carefully timed and backed by a clear fiscal consolidation plan. “Investor appetite will not be guaranteed, and we’ve seen risk premiums widen fast across similarly rated sovereigns,” the firm said. Namibia has increased its reliance on the domestic bond market in recent years. In the 2020/21 financial year,…

15 May

Oryx gets the green light to buy Safari Investments

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Chamwe Kaira Oryx Properties Limited has received approval from the Namibian Competition Commission to acquire 100% of Safari Investments Namibia (Proprietary) Limited. The approval, granted on 9 May, comes without any conditions. Safari Investments Namibia owns and manages the Platz am Meer Shopping Centre, a waterfront mall in Swakopmund. Oryx first issued cautionary announcements about the deal in March and May. The company said, “The transaction and purchase price remain contingent upon the fulfilment of conditions agreed upon with the sellers. Therefore, we advise unitholders to be cautious when trading their Oryx securities until we make another announcement. The deal…

15 May

SA getting lion’s share of dividends

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Chamwe Kaira South Africa remained the largest recipient of dividend payments in 2024, according to the Foreign Investment Report by the Bank of Namibia and the Namibia Investment Promotion and Development Board (NIPDB). Since 2019, more than 50% of dividend payments have gone to South Africa. This reflects strong profits in the financial, insurance, wholesale, and retail trade sectors. Mauritius increased its share of dividends from 1.9% in 2019 to 28.1% in 2024, driven by better profitability in the gold industry. The United Kingdom saw a decline in its dividend share in 2024. This was mainly due to weak diamond…