Observer Money

Chamwe Kaira TransNamib transported a total of 297,636 metric tonnes of sulphuric acid in the year 2022, as announced by the company this week. This sulphuric acid plays a vital role in supporting the smelting operations at Dundee Precious Metals in Tsumeb. Abigail Raubenheimer, the Corporate Communications Manager, stated in an interview that TransNamib possesses the capability to transport various mining products. The range of minerals and metals that the company handles include copper concentrate, copper blister, manganese, coal, and yellow cake. She further noted, "We have established a strong relationship with the Namibia Chamber of Mines, particularly with its…

Chamwe Kaira Namibia exported fresh dates valued at N$2.6 million in September, which was destined to South Africa and Bangladesh. The Namibia Statistics Agency said over the entire period (September 2022 to September 2023), the value of fresh dates exported averaged N$10.3 million with the largest value of N$31 million recorded in February 2023 and the lowest values being recorded in September and December 2022 where no fresh dates were exported. On the demand side, during September, Namibia imported fresh dates valued at N$31 038 solely sourced from South Africa. In terms of trading blocks, Southern African Customs Union (SACU)…

African airlines saw their air cargo volumes decline by 0.1 percent in September, despite the strong growth of demand on the Africa-Asia trade lane (+12.8 percent). This was an improvement in performance compared to August (-3.5 percent). Capacity was 2.7 percent above September 2022 levels. This was contained in International Air Transport Association’s (IATA) latest analysis of the air cargo market based on traffic and capacity data collected in the respective regions during September. IATA said global air cargo markets, showing continuing demand recovery. It said global demand, measured in cargo tonne-kilometers (CTKs), increased by 1.9 percent compared to September…

Niël Terblanché Namibia's Ministry of Mines and Energy has granted permission for a one-off export of 6,000 tonnes of unprocessed lithium ore. This comes just weeks after a blanket ban was imposed on exporting and transporting the raw material. The go-ahead was given in a letter from Bryan Eiseb, the Executive Director of the Ministry of Mines and Energy, to the Inspector General of the Namibian Police, Lieutenant General Joseph Shikongo. This decision follows a high-level meeting between the mining ministry staff and the Namibian Police top brass, aiming to reconcile regulatory compliance with economic activity. The permission is specifically…

The Namibia Wildlife Resorts (NWR) this week declared itself debt-free, saying it was successfully settled all outstanding long-term and statutory debts, some of which date back to the company’s inception. NWR said it has paid up all statutory debts, including back taxes owed to the Namibia Revenue Agency. The total debt was N$93 million. Observer Money this week asked NWR Managing Director, Matthias Ngwangwama about being debt free, becoming profitable and paying dividends to the government. Ngwangwama said he is happy that the company has been able to pay off our long-term and statutory debts only two years after the…

Domestic debt has surged to N$8.7 billion, marking an upward revision from the initial projection of N$7.5 billion stated in the main budget. This adjustment is a response to several financial factors, including a N$579 million increase in the budget deficit, an additional cash requirement of N$273 million, and a N$323 million reduction in foreign borrowing. Consequently, the borrowing plan will be adapted accordingly. The domestic debt stock is anticipated to rise to N$114.5 billion, up from the earlier estimate of N$113.0 billion from the main budget. As a percentage of GDP, domestic debt is expected to remain relatively stable…

During the 2022/2023 financial year, the Development Bank of Namibia inspected and assessed 63 projects valued at N$3.6 billion for compliance. The DBN said it monitors the implementation and progress of remedial actions for the loan’s tenure. The frequency and duration of monitoring depends on the type of transaction financed and the level of risk. “Where clients do not comply with environmental and social risk requirements, DBN works together with clients to achieve the necessary compliance standards,” the bank said. During 2022/23 no active loans were terminated due to noncompliance. Construction and Business Services made up significant sectors due to…

Chamwe Kaira Agra Limited is anticipating financial strain next year due to factors such as escalating fuel prices, rising inflation, and challenges associated with sourcing essential farming input materials. Additionally, the company said the prevailing high-interest rate environment adds complexity to the equation. “Our assessment also encompasses meteorological influences and a continued focus on enhancing credit control practices. We remain vigilant about potential supply chain disruptions caused by load shedding, impacting South African producers, which could lead to fluctuations in availability,” the company said in financial results for the period ended 31 July 2023. The company said although the challenges…

Chamwe Kaira The Bank of Namibia’s stock of international reserves declined in September by 3.4 percent month on month to N$53.8 billion compared to N$55.6 billion at the end of August. “The decline is attributable to commercial bank outflows, as well as government payments. The foreign reserves translated into 5.6 months of import cover, remaining above the international benchmark and adequate to support the currency peg between the Namibia Dollar and the South African Rand,” the central bank said. The annual growth in M2 declined to 7.9 percent at the end of September relative to a growth of 9.6 percent…

Chamwe Kaira The Government has successfully redeemed the JSE-listed Nam03 bond, which matured on the 1st of August with an outstanding balance of N$157 million. This is contained in the Fiscal Policy Statement for the Financial Year 2024/2025 to 2026/2027 released by the Ministry of Finance and Public Enterprises this week. The Government further rolled over the GC23 bond on the 15th of October. To this effect, an outstanding balance of N$2.1 billion at redemption was successfully rolled into other medium to long term bonds along the yield curve. Further, maturing bonds over the Medium Term Expenditure Framework (MTEF) amounts…