Observer Money – Page 12

26 May

N$100 million warehouse to enhance export operations

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Niël Terblanché Walvis Bay Salt Holdings (WBSH), sub-Saharan Africa’s largest sea salt producer, has officially inaugurated a new 14,000-square-metre warehouse on the premises of the port of Walvis Bay. The facility, constructed at a cost of N$100 million, aims to improve the company's export capabilities and safeguard product quality. At the inauguration event, Erongo regional governor Neville Andre described the new warehouse as “a launchpad for growth.” Andre acknowledged the strategic importance of the new warehouse “It would expand storage capacity and enhance the port's competitiveness in a rapidly changing global market,” he said. The ceremony was attended by key…

22 May

FIMA remains troublesome for the financial industry

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CHAMWE KAIRA The status of the Financial Institutions and Markets Act (FIMA) remains uncertain, with no clear indication it will come into effect this year. Namibia Asset Management (NAM) said the Act, in its current form, raises concerns about the long-term sustainability of the financial industry and business. “We look forward to continuing to engage the Minister of Finance around how the Act can be implemented in a way that aligns with national interests and targets while also adhering to global best practice,” NAM said. NAM emphasised that the regulations must fit the local context to avoid unintended negative impacts…

22 May

Namdeb plans to upscale wind plant to 150MW

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CHAMWE KAIRA Namdeb plans to upscale its planned 34 MW wind plant to 100-150 MW. Corporate affairs manager Grace Luvindao said the intent of the recent MoU signed with NamPower is to upscale the project to a significantly larger wind energy facility that is connected to the NamPower electrical grid. “Initial indications are that the facility can be upscaled to between 100-150MW, however this will be confirmed as the study progresses. The capital cost and the funding for the project will be determined once the study phase of the project is nearing completion.” Luvindao said at present, Namdeb does not…

22 May

Procurement board tackles TransNamib tender cancellation

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Chamwe Kaira The Central Procurement Board of Namibia says it is dealing with the government’s decision to cancel TransNamib’s plan to buy 23 new locomotives for N$1.7 billion. Johanna Kambala, Manager of Stakeholder Relations at the board, said the matter is sensitive and the board will respond to questions at an appropriate time. Minister of Works and Transport Veikko Nekundi confirmed that the locomotive tender had been cancelled due to concerns over sourcing from a single supplier. He said TransNamib now needs to come up with new timelines for the locomotive purchase. Earlier this year, TransNamib announced plans to buy…

22 May

Construction sector projected to expand by 8.5%

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CHAMWE KAIRA Namibia’s construction sector is projected to grow by 8.5% in 2025, making it the fastest-growing sector despite accounting for just 1.4% of GDP in 2024. This growth is driven by monetary easing, increased public infrastructure investment, and renewed private sector confidence. Simonis Storm Securities said total output is expected to reach about N$4.3 billion. Growth will focus on residential developments, commercial real estate, and government capital projects. Since late 2024, the Bank of Namibia has cut interest rates by 100 basis points, easing financing conditions. Another rate cut is expected in the second half of 2025. Lower rates…

22 May

FNB lowers 2025 inflation forecast to 3.9%

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CHAMWE KAIRA FNB Namibia economist Helena Mboti said FNB now expects inflation to ease to 3% year-on-year in May. The annual average inflation for 2025 is forecast at 3.9%, slightly below the earlier projection of 4.2%. “Our updated forecast reflects lower-than-expected pressure from housing and utilities, while other assumptions remain broadly unchanged. Although housing and rent prices are expected to remain elevated, the utilities outlook has improved. We had anticipated an electricity tariff increase of over 8%, assuming limited fiscal capacity to subsidise national tariffs for a second consecutive year,” Mboti said. NamPower’s announcement of a more moderate 3.8% increase,…

22 May

Consumers are preferring fuel-efficient cars

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CHAMWE KAIRA Namibian car buyers are shifting their focus from luxury and performance to affordability, fuel efficiency, and practicality. Simonis Storm Securities says this trend is creating space for new brands, especially Chinese manufacturers, to enter the market as some established European brands lose ground. “This evolution presents new opportunities for local dealerships, financiers, and service providers to adapt their offerings in line with shifting consumer expectations, focusing more on cost-conscious packages, servicing support, and competitive financing models tailored to the growing mid-tier vehicle segment,” Simonis Storm Securities said. Vehicle sales data for April 2025 show a strong preference for…

22 May

Sanlam, Tyme Bank form joint venture

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Sanlam has announced that Sanlam Life, Sanlam Personal Loans Proprietary Limited (SPL) and Tyme Bank Limited have entered into agreements which will result in the establishment of a joint venture focused on unsecured personal loans with an embedded credit life offering. The establishment of the joint venture will be subject to the fulfilment of certain suspensive conditions. SPL provides unsecured personal loans of between R5000 and R300000 to qualifying individuals on repayment terms of 12 months to six years at a fixed interest rate. The SPL loan book size was R5 billion as at 31 December 2024. Tyme Bank is…

22 May

Kimberley Process marks ‘breakthrough’ in expanding definition

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The World Diamond Council (WDC) has welcomed the meaningful progress made towards expanding the Kimberley Process definition of conflict diamonds after a successful week of open and productive dialogue at the 2025 Intercessional in Dubai. The meeting, hosted by the UAE and current KP Chair Ahmed Bin Sulayem, marked a significant breakthrough in seeking to expand the definition of conflict diamonds after years of discussion. The current definition, established over two decades ago, primarily addresses diamonds financing rebel movements against legitimate governments. However, the evolving nature of conflicts necessitates a broader scope. The African Diamond Producers Association (ADPA), representing 15…

20 May

Entrepreneurs honoured at DBN 2025 business awards

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Justicia Shipena Blue Crane Safaris Namibia CC, OLC Arandis Solar Energy Corporation, and Lizwise Investment emerged as top winners at the Development Bank of Namibia’s 2025 Good Business and Innovation Awards, held on Monday evening at the Windhoek Country Club and Resort. The event marked two decades of celebrating Namibian entrepreneurship and innovation. Winners were recognised across three key categories: Small and Medium Enterprises (SMEs), Large Enterprises, and the DBN Innovation Award. Blue Crane Safaris Namibia CC was named winner in the SME category, with Ongula Homestead Group as first runner-up. In the Large Enterprise category, OLC Arandis Solar Energy…