Observer Money

CHAMWE KAIRA Namibia’s banking sector continues to attract investors, though differences in earnings quality among listed banks have become structural rather than cyclical, according to the latest Banking Report 2026 by Simonis Storm. The report identifies FirstRand Namibia as the preferred banking stock on the Namibian Stock Exchange (NSX), citing its ability to consistently generate returns on equity above the current cost of equity across a range of economic scenarios. According to the report, the investment case for FirstRand Namibia does not depend on an improvement in the economic cycle, making it the strongest banking franchise for investors seeking exposure…

CHAMWE KAIRA The Municipality of Swakopmund is advancing a series of housing, land servicing and infrastructure projects aimed at accommodating the town’s rapid growth, while creating new investment opportunities and addressing housing needs in informal settlements. Swakopmund Municipality chief executive officer Alfeus Benjamin outlined progress on the town's long-term development agenda under the 20-Year Structure Plan (2020-2040), which was approved by the National Planning Board (NPB) and the Ministry of Urban and Rural Development (MURD) in October 2022. Portions of land were identified in October 2024. The parcels, ranging between 20 and 40 hectares, have been earmarked for low-income, middle-income…

CHAMWE KAIRA Namibia’s inflation outlook has become increasingly uncertain as rising fuel costs and geopolitical tensions threaten to place renewed pressure on households and businesses, even as private sector credit growth showed signs of improvement in April. According to FNB Namibia’s latest Private Sector Credit Extension report, headline inflation accelerated to 3.1% year-on-year in April, up from 2.1% in March, largely driven by higher transport costs following fuel price increases. FNB Namibia Graduate Analyst Ndateelela Amukuhu said the increase was largely anticipated and reflected supply-side pressures linked to ongoing tensions in the Middle East. The report warns that inflationary pressures…

Chamwe Kaira Mediclinic Holdings Limited reported solid revenue and earnings growth for the year ended 31 March 2026, even as the healthcare group navigates major restructuring plans. Although Mediclinic is no longer required to publish standalone results following its acquisition by a consortium comprising Remgro Limited and MSC Mediterranean Shipping Company Holding SA, Remgro said the disclosure was made due to the group’s significant contribution to its own financial position and net asset value. Group adjusted revenue rose 11% to US842 million. The EBITDA margin improved to 15.7% from 15.3% in the prior year, and adjusted earnings increased 45% year-on-year.…

CHAMWE KAIRA Momentum Africa’s operations in Namibia helped drive a strong earnings performance for financial services group Momentum Group during the nine months ended 31 March 2026, with the country contributing to growth in life insurance, new business volumes and contractual service margins across the group’s African operations. The group reported a 15% increase in normalised headline earnings (NHE) to N$5.54 billion, while NHE per share rose 20% to 414 cents from 346 cents in the comparable period. The performance was supported by contributions from all major business units, including Momentum Investments, Metropolitan Life, Guardrisk and Momentum Insure. Momentum Africa,…

Staff Writer Namibia’s private sector credit extension (PSCE) data for April points to a mid-expansion phase in the credit cycle, with broad-based improvements in lending activity but rising inflation now emerging as the dominant macroeconomic risk, according to Almandro Jansen of Simonis Storm. At the same time, inflation has emerged as a key macroeconomic pressure point. Headline inflation jumped to 3.1% in April from 2.1% in March, marking the sharpest monthly acceleration in the post-pandemic period. The increase was primarily driven by transport costs, which reversed from a 1.7% decline to a 5.0% increase, reflecting lagged pass-through effects from currency…

Chamwe Kaira  Zeda Limited expects a recovery in Namibia during the second half of its financial year, which it believes will help improve the performance of its wider African portfolio. The company anticipates that momentum in its leasing business, including public sector contracts, will continue, bolstered by a recovery in Namibia. “Performance recovery in Namibia, which is expected to result in a resurgence of the portfolio,” the company said in its interim results for the six months ended 31 March 2026. Zeda holds the licence for the Avis brand in South Africa and 10 other countries in Sub-Saharan Africa. The…

Chamwe Kaira  Namibia Power Corporation (NamPower) has stronger liquidity and leverage metrics than South Africa’s power utility Eskom, according to a recent assessment by Fitch Ratings. The ratings agency said Eskom continues to depend heavily on support from the South African government to maintain its operations, while NamPower is viewed as having a stronger financial position and lower reliance on direct state intervention. In its latest ratings action commentary, Fitch affirmed Eskom Holdings SOC Ltd’s long-term local-currency issuer default rating at ‘B’ with a stable outlook. The utility’s standalone credit profile remained at ‘ccc+’. Fitch said Eskom’s rating is largely…

Chamwe Kaira  The Namibia Revenue Agency (NamRA) is strengthening its ability to identify tax risks and revenue opportunities in the country’s extractives sector as mining, oil and gas investments continue to grow. According to the African Tax Administration Forum (ATAF) 2025 Annual Report, Namibia was among 35 African countries that received technical assistance in areas such as transfer pricing, exchange of information, extractive sector taxation and measures to combat illicit financial flows. The report said Namibia participated in ATAF’s specialised programme on the taxation of the extractive sector. The programme aims to improve technical knowledge of tax issues linked to…

Chamwe Kaira  Alpha Namibia Industries Renewable Power Limited (Anirep) has secured approval from the Namibia Securities Exchange (NSX) to delay the publication of its audited annual financial statements. The NSX-listed renewable energy company said it requires more time to complete its audit process due to complexities related to the valuation of goodwill. As a result, Anirep will not meet the three-month deadline for publishing audited financial results as required under the NSX listing requirements. In a statement, the company said the auditing process has taken longer than expected because of the work required to assess goodwill valuations. The NSX has…