Observer Money – Page 89 – Windhoek Observer

17 Oct

Gold, zinc, copper prices increase

Observer Money

CHAMWE KAIRA The Bank of Namibia has disclosed that the price of gold trended higher over the past two-month period, buoyed by safe-haven demand. Likewise, zinc and copper prices increased over the same period, partly due to relatively lower global interest rates and a weaker US dollar exchange rate, the central bank said. The central bank said that while the uranium spot price initially fell toward the end of August, reflecting softening market fundamentals and market rebalancing, it recovered in the subsequent six weeks. Meanwhile, diamond prices have stabilised amid increased rough diamond inventories in India. “Weaker global demand, particularly…

17 Oct

Car sales to remain low

Observer Money

CHAMWE KAIRA Economic indicators in September showed positive trends, including a month of lower interest rates since May 2023, a stronger rand/Namibian dollar, and easing inflation below the 4% mark, Simonis Storm has revealed. The firm said lower fuel prices further bolstered consumer and business confidence, offering relief to household budgets. Although the July increases did not continue in August, the commercial vehicles segment has shown a positive trend in recent months, boosted by the mentioned macro factors. The firm said as the country anticipates further interest rate reductions, the costs of borrowing are expected to decline, which may stimulate…

17 Oct

Trustco expects major deal to close by December

Observer MoneyLegal Shield Holdings Limited, Riskowitz Value Fund LP (RVF), Trustco Group Holdings Limited

CHAMWE KAIRA Trustco Group Holdings Limited (Trustco) has announced updates to its planned purchase of additional shares in Legal Shield Holdings Limited (LSH), the company announced. Originally announced on 23 April, the transaction involves Trustco acquiring an extra 11.35% stake in LSH from Riskowitz Value Fund LP (RVF). This will increase Trustco’s total ownership of LSH to 91.35%. The transaction, valued at N$468 million (US$27 million), will be completed by issuing new Trustco shares to RVF. The transaction is expected to close by 31 December. The acquisition includes valuable assets such as Trustco Insurance Limited and Trustco Life Limited, as…

17 Oct

Solar could provide electricity to 400m people

Observer MoneyOff-Grid Solar Market Trends Report, World Bank’s Energy Sector Management Assistance Program

Off-grid solar is the most cost-effective way to power 41% of people globally by 2030 who are still living without energy access. The sector already provided 55% of the new connections in sub-Saharan Africa between 2020 to 2022 - where about 85% of the unelectrified population lives. The latest Off-Grid Solar Market Trends Report (MTR) 2024, published today by the World Bank’s Energy Sector Management Assistance Program (ESMAP) and GOGLA, warns that a 6-fold increase over current investment levels - or US$21 billion - is required to realize off-grid solar’s potential to contribute to universal energy access, or this opportunity…

17 Oct

Save Today and Secure Tomorrow

Observer Money

ELSIE KAMBALA Saving money is a very essential habit. Saving goals can be short-term, medium-term, and long-term. Savings are meant for various functions, including daily needs, long term goals like retirement and life insurance and unplanned events like accidents and sickness. Financial advisers agree that you should have at least three to six months’ equivalent of your monthly expenses in your savings account. Furthermore, financial experts have suggested that at least 20% of your monthly income must go towards savings, 50% to basic needs like rent and mortgage and 30% must go towards wants. The Namibia Financial Inclusion Survey 2017…

16 Oct

Decline in consumer inflation attributed to repo rate cut

Observer Moneydrop in consumer inflation, Monetary Policy Committee

Martin Endjala The Bank of Namibia has reduced the repo rate by 25 basis points, lowering it from 7.50% to 7.25%, a move attributed to the drop in consumer inflation, which fell to 3.4% in September. According to economist Josef Sheehama, who responded to the Monetary Policy Committee's (MPC) announcement, lower fuel prices, driven by declining oil prices and a stronger Namibian dollar, have been key factors in this cooling of inflation. "The interest rate cut will undoubtedly relieve pressure on all Namibians," Sheehama said. He believes the decrease in consumer inflation influenced the MPC’s decision to lower the repo…

15 Oct

South Africa faces backlash for snubbing Zambia AfDB Candidate

Observer MoneySADC, Samuel Maimbo

Martin Endjala South Africa has faced criticism for failing to endorse the Zambian candidate for the Africa Development Bank (AfDB) presidency. The Southern African Development Community (SADC), which includes 16 countries from Southern, Central, and Island Africa and accounts for over 14% of voting rights in the election, endorsed Samuel Maimbo on 17 August. SADC traditionally votes as a bloc during the AfDB presidential election, but this will not be the case now. South Africa, with over 5% of the voting rights, has shattered this coalition. According to reports, the country did not view Maimbo's candidacy favourably. The Zambian national…

15 Oct

NAC records N$40 million profit, plans major infrastructure upgrades

Observer MoneyBisey /Uirab, Dr Leake Hangala, Public Enterprises Governance Act

Niël Terblanché The Namibia Airports Company (NAC) has reported a profit after tax of N$40 million for the 2023/2024 financial year. This breakthrough for the state-owned enterprise was announced by the NAC Board Chairperson Dr Leake Hangala at the company’s annual general meeting (AGM) on 30 September. The AGM was held in accordance with the Public Enterprises Governance Act (PEGA) of 2019 during which the NAC leadership presented the audited financial statements to shareholders. Hangala highlighted the organisation’s financial growth, which saw a substantial increase in profits from N$19.4 million in the previous year to N$40.8 million in 2024. The…

15 Oct

FlyNamibia expands route network with TotalEnergies partnership

Observer MoneyTotalEnergies

Niël Terblanché FlyNamibia has announced the reinstatement of its weekday flights between Eros Airport in Windhoek and Lüderitz. The latest development which was announced on Tuesday was made possible through a partnership with TotalEnergies EP. According to André Compion, the airline’s Managing Director, the new flight route will operate Monday to Friday and is set to commence on 16 October 2024 “The reinstatement of the flight route will provide vital connectivity to the Lüderitz community and its surrounding economic activities,” he said. Compion expressed gratitude for the partnership with TotalEnergies, which enables the airline to maintain and expand routes that…

13 Oct

Manufacturing sector boosted by brewing Lion Lager locally

Observer MoneyAnheuser Busch InBev (AB InBev), Lion Lager, Namibia’s green industrialisation

Martin Endjala Anheuser Busch InBev (AB InBev), situated in Okahandja, announced that Lion Lager will soon be brewed in Namibia. The Minister of Industrialisation and Trade, Lucia Iipumbu, shared this information last week during the launch of the local production of Lion Lager in Okahandja. “Initiatives like today’s launch will further bolster this sector, supporting the government’s goals of sustainable economic growth and industrialisation,” she said. Iipumbu said the country, like many worldwide, continues to face the challenges posed by global economic fluctuations, underscoring the importance of attracting sustainable investment into the local economy. According to her, AB InBev’s decision…