Observer Money

CHAMWE KAIRA  Going forward, upside risks to inflation will persist, especially from food and imported goods prices, which could push up goods inflation which is more sensitive to supply-chain disruptions and raw material fluctuations, particularly amid geopolitical unrest, FNB Namibia economist Helena Mboti has said.  Mboti said given the risk of heightened geopolitical tensions, upside risk to goods inflation remains eminent.   She said Food prices are expected to remain elevated until improved harvest yields in May, while housing and utility costs face upward pressures from anticipated tariff hikes and demand-driven rental inflation. Global oil supply is expected to increase relative…

Frida Frans The urgency of integrating biodiversity conservation into Namibia’s financial and private sectors has never been more critical than it is today.  As global attention and conversation intensifies on the environmental challenges facing our planet, countries worldwide are increasingly recognizing the need to align financial and business practices with sustainability goals.  Last week the UNDP’s Biodiversity Finance Initiative (BIOFIN) in Namibia hosted a training workshop in Walvis Bay, Erongo Region, bringing together key financial and private sector stakeholders to explore innovative financing mechanisms that promote environmental sustainability. The discussions underscored the vital role financial institutions and businesses play in…

Niël Terblanché TransNamib has suspended rail traffic on several lines over the past weekend to allow technical teams to repair infrastructure damaged by recent flooding. According to the national railway operator’s spokesperson, Abigail Raubenheimer, the damage has primarily affected routes in southern and western Namibia. "TransNamib wishes to inform the public and its valued customers that recent heavy rains across the country have led to washaways in certain sections of the railway network, particularly in the southern and western regions of Namibia," she said. The railway between Usakos and Arandis was among the affected routes, but it has already been…

Niël Terblanché Namibia took another step towards industrial expansion and economic diversification as President Nangolo Mbumba officiated the groundbreaking ceremony for the Nambaza Logistics Park (NLP) and the Blue Institute of Technology (BIT) in Walvis Bay on Friday. The two projects, which are expected to boost the country’s logistics capacity and skills development, form part of a broader strategy to position Namibia as a regional economic hub. Mbumba described the event as a crucial milestone in the country’s development, saying it aligns with the national vision for industrialisation and job creation. “Nambaza is a befitting name for the logistics park…

CHAMWE KAIRA NamPower plans to spend N$15.6 billion on capital projects over the next five years. The company presented figures during a stakeholders meeting on Wednesday.  The company warned that load shedding would harm the economy and explained its commitment to supplying energy at all costs to avoid such negative impacts.  Rising commodity prices, which have surged significantly above inflation, and increasing funding costs were also highlighted as challenges. This year, the Electricity Control Board (ECB) withdrew its approval for an 8% tariff increase for 2025. NamPower said if allowed, it would have applied for an 8.7% increase. The company…

CHAMWE KAIRA  FirstRand Namibia has said while the Namibian economy faces some near-term challenges, there are strong reasons for optimism heading into 2025. The firm said certain key sectors in the primary industry, such as oil and gas exploration, uranium, copper and agriculture, coupled with supportive policy measures, should lay the foundation for sustained economic growth in the medium term, according to the FirstRand consolidated interim financial results and cash dividend declaration for the period ended 31 December 2024. The group remains well positioned to participate in opportunities in the oil and gas sector as they emerge, the firm said. …

CHAMWE KAIRA  The Bank of Namibia’s stock of international reserves increased at the end of January and rose to N$64.3 billion, reflecting a month-on-month increase of 2.1%.  The monthly increase in reserves was predominantly driven by inflows of N$7 billion from SACU. This level of international reserves translates into 4.2 months of import cover. When excluding oil exploration and appraisal activities, which are mainly financed from abroad, it stood at 5.2 months of import cover at the end of January, the central bank stated. Banking industry cash holdings increased in January, with cash balances within the banking industry increasing to…

CHAMWE KAIRA  Leading agriculture and Namibia Stock Exchange-listed company Agra expects profit after tax, basic earnings per share and headline earnings per share for the interim period ended 31 January 2025 to increase by between 45% and 55% compared to the previous period. “This trading statement has not been reviewed or reported on by Agra’s auditors and shareholders are advised to exercise caution when dealing in the shares until the publication of the interim financial results for the year ended 31 January 2025. The interim results will be released on or about 14 March 2025,” Agra said.  In the financial…

CHAMWE KAIRA  Oryx Properties Limited is of the opinion that the property market continues to show improvements supported by a projected expansion of the Namibian economy by 4% in 2025. The company said in unaudited interim results for the six months ended 31 December 2024 that the positive economic trajectory is driven by urban development and infrastructure projects, which continue to increase demand for both residential and commercial properties.  “Our strategic investments in high-growth areas, growth momentum in line with our strategy and our commitment to sustainable building practices position us well to capitalise on these trends,” the company said.…

CHAMWE KAIRA  Copper ores and concentrates emerged as the largest contributor to the country’s trade deficit, having recorded a deficit of N$1.5 billion in January. Following in second place was petroleum oils, which posted a deficit of N$1.0 billion, while aircraft and associated equipment ranked third after posting a deficit of N$469 million. Contrary to the deficits, the country recorded trade surpluses on non-monetary gold amounting to N$1.8 billion. The second and third places were occupied by uranium and fish, which recorded trade surpluses of N$1.4 billion and N$1.2 billion, respectively; this is according to the Namibia International Merchandise Trade…