Observer Money – Page 97 – Windhoek Observer

20 Feb

Russia eyes Namibia’s nuclear potential

Observer Money

CHAMWE KAIRA The Russian Ambassador to Namibia, Dmitry Lobach, said there are talks to build a 100 MW modular nuclear power station in Namibia and to apply Russian nuclear technology in medicine and agriculture. The Russian diplomat said Russian investors have been working in Namibia and cited the geological surveying for uranium in the Omaheke Region. “This venture by Rosatom, the world-leading Russian State Atomic Corporation, is to establish cutting-edge technology with a cost of US$500 million,” he said. Rosatom has already invested US$50 million in the Omaheke Region. “It is going to extract 3000 tonnes of uranium per year…

20 Feb

De Beers’ carrying value reduced by US$2,9 billion

Observer Money

CHAMWE KAIRA It is looking likely that joint diamond ventures, including Debmarine Namibia, Namdeb land operations, and the Namibia Diamond Trading Company, all 50/50 joint ventures with the De Beers Group, will have a new partner in the near future. Anglo American, which owns De Beers, has continued its quest to sell the diamond giant. “The work to separate De Beers is well under way, with action taken to strengthen cash flow in the near term and position De Beers for long-term success and value realisation. Given prevailing diamond market conditions, we have reduced our carrying value of De Beers…

20 Feb

Positive outlook for car industry

Observer Money

CHAMWE KAIRA The Bank of Namibia’s decision to lower the repo rate from 7% to 6.75% in February will have a notable impact on credit conditions, vehicle financing, and overall car sales in the coming months. While lower borrowing costs typically encourage spending, broader economic pressures could temper the full effect of this rate cut, a report has noted. Simonis Storm noted that with interest rates easing, borrowing costs will fall, making credit more accessible to both businesses and households. However, the impact will vary across different sectors, it noted. The analysis noted that businesses may take advantage of cheaper…

20 Feb

Lüderitz wind farm gets N$2.5 billion investment

Observer Money

InnoVent is building a 11 turbine wind farm on the Atlantic coast as part of an ambitious national policy to enhance energy independence and decarbonization. InnoVent has developed and built the country’s first three solar power plants (Omburu, Osona, Aussenkehr, each with 5 MW) and the first wind farm (Ombepo, 6 MW). These infrastructures, with a total capacity of 21 MW, were commissioned between 2015 and 2017. In 2019, InnoVent acquired a fourth solar power plant of 5 MWc in the Omusati region, thus increasing its capacity and availability. Currently, InnoVent operates 26 MW in Namibia, producing 76,500 MWh in…

20 Feb

Did a Tax Dispute Hold Up the De Beers-Botswana Deal?

Observer Money

De Beers and the Botswana government have concluded their negotiations over a new sales agreement for rough diamonds after more than five years of discussions. They haven’t signed yet: Bogolo Kenewendo, minister of minerals and energy, said she hoped this would happen later this month, a pronouncement De Beers CEO Al Cook met with a nod at a press briefing. All that remains are the ‘largely formulaic’ process of issuing the mining licenses, Cook told the audience. The new government, under President Duma Boko’s Umbrella for Democratic Change (UDC) coalition, has touted the fact that it managed to seal the…

20 Feb

NBL launches Windhoek Beer in Kenya

Observer Money

Namibia Breweries Limited (NBL) has announced the launch of Windhoek Beer in the Kenyan market. The company said the strategic move marks a significant milestone in NBL's ongoing efforts to expand its footprint, export its premium products, and develop its business across new markets. Windhoek Beer, the iconic brand of NBL portfolio, renowned for its exceptional quality and rich heritage, is now available to Kenyan consumers who appreciate a finely crafted beer. Brewed in accordance with the Reinheitsgebot, the German Beer Purity Law of 1516, Windhoek Beer is made from only the finest ingredients: malted barley, hops, and water, ensuring…

20 Feb

Anglo American sells nickel business

Observer Money

Anglo American has agreed to the sale of its nickel business to MMG Singapore Resources Pte. Ltd, a wholly owned subsidiary of MMG Limited for a cash consideration of up to US$500 million. The nickel business comprises two ferronickel operations in Brazil – Barro Alto and Codemin – and two high quality greenfield growth projects – Jacaré and Morro Sem Boné. The agreed cash consideration of up to US$500 million comprises an upfront cash consideration of US$350 million at completion; the potential for up to US$100 million in a price-linked earn out and contingent cash consideration of US$50 million linked…

19 Feb

IMF advised Namibia against retail digital currencies

Observer Money

Niel Terblanche The International Monetary Fund (IMF) has advised Namibia against issuing a retail central bank digital currency (CBDC). A mission from the IMF visited Namibia in January, and in a recent report, it advised against pursuing a sovereign digital currency for retail consumers. The IMF recommended that the Bank of Namibia focus on promoting existing payment improvements. “As the mission did not find strong support for rCBDC issuance to address gaps in payments, it recommends against pursuing advanced technological exploration beyond proof-of-concept until tangible benefits of CBDC for payments are evident,” the report says. BoN has been exploring a…

18 Feb

NAMCOR strikes more hydrocarbons offshore

Featured, Observer Money

Niël Terblanché The National Petroleum Corporation of Namibia (NAMCOR) announced the presence of hydrocarbons in the Sagittarius-1X exploration well, drilled offshore in the Orange Basin. In a statement, issued on Monday, NAMCOR’s executive for upstream exploration, Victoria Sibeya said the Drilling operations commenced on 18 December 2024, in partnership with Rhino Resources (42.5%, operator), Azule Energy (42.5%), NAMCOR (10%), and Korres (5%). Using the Noble Venturer drillship, the well reached its final depth on 6 February. She indicated that the drilling was targeting upper cretaceous reservoirs. “The well successfully encountered a hydrocarbon-bearing formation with no observed water contact,” she said…

16 Feb

Meatco eyes recovery amid financial challenges

Observer Money

Niël Terblanché The Meat Corporation of Namibia (Meatco) is focused on driving progress and adapting to the evolving challenges of the market to ensure the continued success of both Meatco and the livestock industry at large. Meatco hosted a special members’ meeting on 11 February, with approximately 100 members in attendance. The meeting, which provided an overview of the company’s financial status for 2023/2024, served as a platform to share key developments and feedback on the corporation’s turnaround strategy. During the meeting, the management team acknowledged the financial challenges faced by the company. However, the presentation of the annual report…