Observer Money – Page 81

07 Mar

Namfisa’s reform strategy will spearhead financial sector evolution

info_e12wt4csObserver MoneyNamfisa’s reform strategy will spearhead financial sector evolution

Niël Terblanché The Namibia Financial Institutions Supervisory Authority (Namfisa) will undergo a critical transformation aimed at revamping its regulatory and supervisory framework to foster innovation, enhance service delivery, and ensure a robust financial sector. Namfisa’s Chief Executive Officer Kenneth Matomola, Namfisa’s stated that the reform strategy is multifaceted, focusing on institutional, legislative, and supervisory changes. Namfisa, tasked with overseeing non-banking financial institutions, has identified outdated laws as significant impediments to innovation and efficient implementation. The existing regulatory framework, based on a compliance-driven approach, contrasts sharply with the global shift towards risk-based supervision. To address these challenges, according to Matomola, Namfisa…

01 Mar

Govt to settle UNAM’s N$605m debt

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CHAMWE KAIRA The government has announced plans to settle the legacy debts of state-owned companies, including Air Namibia, the National Fishing Corporation of Namibia (FishCor), the Namibia Broadcasting Corporation (NBC), New Era, Roads Contractors Company (RCC), TransNamib, and the University of Namibia (UNAM), as disclosed by the Ministry of Finance and Public Enterprises this week. The total outstanding amounts owed by these entities are as follows: N$858 million for PAYE, N$140 million for income tax, N$338 million for VAT, and N$19 million for import VAT, with the total debts amounting to N$1.35 billion. Air Namibia’s debts total N$49 million, FishCor,…

01 Mar

Brazilian firm to provide Continental Shelf exercise

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CHAMWE KAIRA The government has announced that the Directorate of Agriculture and Land Reform is gearing up for the project involving the extension of Namibia’s Continental Shelf margin beyond 200 nautical miles. In preparation for this endeavor, which includes readiness to defend Namibia's claim before the United Nations Commission on the Limits of the Continental Shelf (CLCS), a contract worth N$16 million has been secured with a Brazilian firm. Among the objectives of this agreement is the training of the Namibian team and the revision of Namibia’s claim of subsea territory, spanning approximately 1,062,935.85 square kilometers. The continental shelf refers…

01 Mar

Govt to transmit N$5.5 billion into sinking fund

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CHAMWE KAIRA Over the next three years, a significant portion of the government debt portfolio is due for repayment. The largest among these maturities is the US$750 million (N$14.3 billion) Eurobond due on 29 October 2025. The Ministry of Finance and Public Enterprises has said this is the largest single day debt maturity in the history of the country. In this regard, the government plans to redirect part of the increase in revenues towards the sinking fund to manage the rollover risk and contain increases in future debt service obligations. Accordingly, the government will transmit at least N$3.5 billion during…

01 Mar

Slow start to building activities

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The building activity observed in Windhoek and Swakopmund for January indicate a concerning start to the year, Simonis Storm Securities has said. Windhoek experienced a decrease in both approved building plans and completed projects compared to the previous month and year. Swakopmund also saw a decrease in approved building plans and a significant decline in completed projects, indicating a slowdown in construction activity. The firm said these trends suggest a concerning outlook for the construction sector, influenced by economic uncertainty where cyclical sectors like construction and materials typically face reduced demand. Additionally, the current high-interest rate environment further dampens activity.…

01 Mar

Govt revenue reach N$72 billion

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CHAMWE KAIRA At the end of January 2024, total revenue collections stood at N$72 billion, translating into a collection rate of 90.6% over the first 10 months of the financial year, budget documents released showed this week. This is significantly higher than the corresponding historical averages. As a result, total revenue and grants for the 2023/24 financial has been revised upward by 3.2% from N$78.6 billion to N$81.1 billion. “When compared to the previous year, total revenues increased by 26%. The increase reflects strong economic growth prospects and improved revenue administration. As a result, Corporate Income Tax and VAT have…

01 Mar

Production starts at Langer Heinrich

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CHAMWE KAIRA Production activities have commenced with first ore feed into the Langer Heinrich Mine processing plant on 20 January 2024 following successful commissioning of the beneficiation circuit, the its majority owner, Paladin Energy said. Operation of the mine had been suspended in 2018 due to low uranium prices. Paladin received export permits from the Ministry of Mines and Energy in Namibia for 2024. Paladin said it had no lost time injuries or reportable incidents during the six months ending 31 December 2023. Over two million hours have been worked on the Langer Heinrich Mine Restart Project without any serious…

01 Mar

Deloitte has mixed feelings over tax proposals

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Deloitte Touche Namibia said this week that Minister of Finance, Ipumbu Shiimi’s tax policy stance was a combination of sentiments not to introduce new tax policy proposals which may stifle economic recovery and increasing the competitiveness, fairness and equity of the Namibian tax system. “For the first time in many years, over ten tax proposals were announced,” the firm commented. The individual income tax threshold will increase from the current N$50 000 to N$100 000. Deloitte noted that the proposal was initially made in the 2023 main budget and indications are now that it will be effective from 1 March…

01 Mar

Preservation funds in shaping financial legacies

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NDADHI NDOROMA In the world of financial planning, the preservation of wealth stands as a vital component in establishing a durable financial legacy. With their strategic position, preservation funds emerge as prosperity guardians, guaranteeing future generations' financial well-being. This article will explore the critical function preservation funds play in preserving and transferring wealth. Preservation funds are essential to financial planning. These funds are fundamentally about protecting assets from unwarranted depletion and volatility. Preservation funds, in contrast to conventional investment vehicles, place a higher priority on capital preservation and provide protection from market and economic volatility. The flexibility of preservation funds…

01 Mar

PSEMAS collects N$23 million in arrears

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The Ministry of Finance and Public Enterprises, in collaboration with the PSEMAS Coordinating Committee, has initiated the comprehensive reform agenda for the Public Service Medical Aid Scheme (PSEMAS). The first phase of this reform has been completed, with the Cabinet endorsing the recommendations outlined in the PSEMAS Technical Review Report. Currently, the second phase, involving implementation, is underway. Additionally, the ministry has successfully concluded phase three of the re-registration project for members and dependents, and in phase four, has managed to collect approximately N$23 million in arrear contributions. The enhancement of the membership management system has been postponed to accommodate…