Observer Money

CHAMWE KAIRA The annual inflation rate accelerated to 4.1% in May, up from 3.5% recorded in the corresponding period a year earlier, according to the Namibia Statistics Agency (NSA). NSA Statistician-General and chief executive officer, Alex Shimuafeni, said the headline inflation rate for the 12 months ending May reached 4.1%, while the overall price level increased by 1.2% on a month-on-month basis, compared to 1.1% recorded in April 2026. Core inflation, which excludes certain volatile items, stood at 3.1%, remaining below the headline inflation rate. The agency's zonal analysis showed that Zone 2, comprising the Khomas Region, recorded the highest…

CHAMWE KAIRA  The Government Institutions Pension Fund (GIPF) currently has an asset base of N$213.2 billion and delivered 15% net investment return over the past three years as at 31 January 2026.  The fund this week launched its three-year strategic plan (2026-2029), with board chairperson, Penda Ithindi, disclosing that the plan encompasses several strategic pillars that provide focus and direction on the sustainability of the fund, delivering excellent service, good governance and ethical leadership, organisational and employee capacity and socio-economic impact. Ithindi said the successful implementation of the fund’s strategic priorities will result in ensuring optimal cost management, risk mitigation,…

CHAMWE KAIRA Financial services group, Alexander Forbes Group Holdings Limited (Alexforbes) has started consolidating its fund administration platforms across Namibia, South Africa and Botswana into a single system, a move aimed at improving client service, reducing costs and supporting future growth across the region. The company said it has begun decommissioning its legacy fund administration systems as part of a broader technology modernisation programme. Initial milestones have already been achieved and clients in the affected markets, including Namibia, have been engaged during the transition process. The development forms part of Alexforbes' wider strategy to simplify operations, improve efficiency and strengthen…

CHAMWE KAIRA  The Government Institutions Pension Fund (GIPF) has fully disclosed its investments in Oryx Property Limited, in which GIPF holds a 29.46%. Oryx Properties recently inaugurated the Goreangab Mall in Windhoek. The mall is a co-development between Oryx Properties Limited and Safland Property Group. The project represents a total investment of approximately N$300 million, fully funded by Oryx Properties Limited, which retains 100% ownership of the asset. The GIPF awarded a mandate to the Frontier Property Trust, managed by Safland Property Group amounting to N$450 million, that enabled the group to establish a presence in Namibia. The GIPF general…

Alrosa’s supervisory board has approved a new project for promoting natural diamonds, which will run through 2030. The programme is aimed at generating sustainable long-term demand for natural diamonds as a category in key global diamond-jewelry markets, the Russian miner said this week. It will consist of generic marketing to stimulate demand, including strengthening the value positioning of mined diamonds as a symbol of authenticity and uniqueness and promoting the sustainability benefits of natural diamonds. The initiative will also support retail and consumer education, advance regulatory protection, and combat unfair practices. Alrosa will take an omni-channel approach to marketing that…

Staff Writer  The Bank of Namibia this week hosted an Internal Audit Awareness Day engagement bringing together policymakers, governance practitioners, auditors, and public sector leaders to reflect on the evolving role of internal audit in strengthening governance, accountability, and institutional resilience. Deputy Governor, Nicholas Mukasa highlighted the critical role of internal audit as an independent assurance function that strengthens governance, supports effective risk management, and promotes accountability across institutions. He noted that strong internal audit functions provide organisations with the foresight, insight, and assurance required to navigate an increasingly complex operating environment while maintaining public trust. The engagement was held…

Staff Writer The closure of the Strait of Hormuz and the resulting surge in global oil prices are expected to push inflation higher in Namibia and South Africa over the coming months, although analysts believe the impact will be temporary and unlikely to trigger a prolonged inflation cycle. According to a market analysis by Simonis Storm, Brent crude oil is currently trading near US$93 per barrel after reaching US$98 earlier this week, around 37% higher than a year ago. The increase has already translated into higher fuel prices in both Namibia and South Africa, with fuel price adjustments recorded in…

Staff Writer Supporting the growth of small businesses to compete, grow and create jobs remains key to Namibia's economic development agenda.  In pursuit of this goal, the Promotion of Small and Medium Enterprises (ProSME) development project in Namibia has introduced the SME Fund to strengthen the sustainability, competitiveness and growth potential of Namibian Micro, Small and Medium Enterprises (MSMEs).  The ProSME project is implemented through a partnership between the National Planning Commission (NPC), the Namibia Investment Promotion and Development Board (NIPDB), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), with funding from the German Federal Ministry for Economic Cooperation and Development…

CHAMWE KAIRA Sea transport remained Namibia's leading export channel in April 2026, carrying goods worth N$3.8 billion and accounting for 39% of the country's total exports, according to the latest Namibia International Merchandise Trade Statistics Bulletin. The main commodities exported by sea were uranium, fish, and nickel ores and concentrates. Air transport ranked second, contributing 32% of total export value, largely driven by shipments of non-monetary gold and diamonds. Road transport accounted for the remaining 29%, with petroleum oils, fish and fertilizers making up the bulk of exports moved by road. Despite the strong export values, the total volume of…

Staff Writer Mobile Telecommunications Limited (MTC) remains a strong income-generating stock with a dominant position in the Namibian telecommunications market, but rising costs are beginning to weigh on profitability, according to stockbroking firm Simonis Storm Securities. In its latest assessment of MTC, Simonis Storm downgraded the stock from “Buy” to “Hold” and lowered its target price to 1,035 cents, down from 1,073 cents. The firm said MTC's interim results for the six months ended March 2026 showed that while revenue growth remains healthy, the company is struggling to convert that growth into stronger earnings. “MTC remains a quality income stock…