Observer Money

Microlenders dominate Namfisa’s list of non-compliant entities

Microlenders dominate Namfisa’s list of non-compliant entities

Justicia Shipena Microlending institutions continue to top the list of non-compliant entities in the country’s non-banking financial sector, according to the Namibia Financial Institutions Supervisory Authority (NAMFISA)'s latest quarterly report. The first quarter report for 2025 shows that 91.6% of all non-compliant institutions came from the microlending industry.  Issues ranged from late submission of regulatory returns, failure to pay levies, and ignoring inspection findings. Out of 1,065 regulated entities, 107 were classified as Stage 5, meaning they were non-compliant.  In contrast, 625 entities, or 58.7%, were fully compliant and fell under Stage 1 of NAMFISA’s supervision framework. Namfisa chief executive…
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Insurance sector rebounds on long-term premiums

Insurance sector rebounds on long-term premiums

Justicia Shipena  The growth of the insurance sector in the first quarter of 2025 was driven by an increase in long-term gross premiums. The Namibia Statistics Agency (NSA), in its report on the country’s gross domestic product, said the insurance sector recorded an 8.1% growth in real value added, recovering from zero growth in the same quarter last year. This comes as the financial services sector grew by 6.0% in real value added, up from 4.7% during the same period in 2024.  The growth was supported by both the banking and insurance subsectors. The banking sector posted a 3.4% increase,…
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FNB expects BoN to hold repo rate at 6.75%

FNB expects BoN to hold repo rate at 6.75%

Chamwe Kaira FNB Namibia economists Cheryl Emvula and Helena Mboti expect the Bank of Namibia to keep the repo rate steady at 6.75% over the coming quarters, even as global markets begin pricing in rate cuts. “As a result, the interest rate differential with South Africa is expected to compress to 25 basis points over the course of the year. Should capital flow pressures intensify, or reserves come under severe strain, the central bank may consider pre-emptive rate adjustments to stabilise inflows and reinforce its commitment to capital flows,” Emvula and Mboti said. Despite Namibia’s strong trade position, international reserves…
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Oil, dollar fluctuations affect Namibia

Oil, dollar fluctuations affect Namibia

Chamwe Kaira Namibia takes a direct hit whenever oil prices rise or the US dollar strengthens on global markets.  The country imports all its refined fuel, has no domestic refining capacity, and holds only modest foreign currency reserves. According to a report by Simonis Storm Securities, these external shocks drive up imported inflation and widen trade imbalances.  The firm estimates that a sustained 10% rise in Brent crude prices increases Namibia’s headline inflation by between 0.8 and 1.2 percentage points. The impact depends on how fast the higher costs filter through and how stable the currency remains. “The Namibia dollar…
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De Beers contribution to Namibia’s economy drops

De Beers contribution to Namibia’s economy drops

Chamwe Kaira Anglo American, through its subsidiary De Beers, revealed in its 2024 tax and economic contribution report that its total tax and economic contribution in Namibia amounted to US$545 million (N$10.2 billion), a decrease from US$611 million (N$11.4 billion) in 2023. Taxes and royalties borne in Namibia amounted to US$63 million, compared to US$144 million the previous year. Total taxes and royalties borne and collected reached US$136 million, lower than US$234 million in 2023. De Beers operates in Namibia through a 50:50 partnership with the government. It recovers land-based diamonds through Namdeb and offshore diamonds through Debmarine Namibia. The…
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Safari investments deal dependent on fulfilled conditions

Safari investments deal dependent on fulfilled conditions

Chamwe Kaira Oryx Properties Limited, a company listed on the Namibia Stock Exchange, says its planned acquisition of Safari Investments Namibia (Proprietary) Limited is still subject to conditions agreed with the sellers. Safari owns and manages the Platz am Meer Shopping Centre in Swakopmund. Oryx announced in March that it had entered into a sale of shares and claims agreement with Safari Investments RSA Limited, a company listed on the Johannesburg Stock Exchange.  Under the deal, Oryx will acquire 100% of the issued share capital in Safari Investments Namibia and all related loan claims from the seller for N$290 million.…
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New Walvis Bay hotel will have local and foreign funding

New Walvis Bay hotel will have local and foreign funding

InterContinental Hotels Group (IHG) Hotels & Resorts, one of the world’s leading hospitality companies, has announced the signing of three new hotels in Namibia as part of a franchise agreement with Cadence Capital & Santiago Property Developers Pty Ltd. The agreement will see the debut of Vignette Collection Dunes Resort Swakopmund, Holiday Inn Walvis Bay, and voco Windhoek CBD, collectively adding 347 rooms to IHG’s growing pipeline in Southern Africa.  The three properties will be operated by Valor Hospitality Partners, a global leader in integrated hotel management and operations solutions, and one of IHG’s trusted partners. All hotels are expected…
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Acacia-Composites manufacturers eyes more export markets

Acacia-Composites manufacturers eyes more export markets

Acacia-Composites Manufacturers, the African continent’s only WPC (wood-plastic composite) manufacturer, recently exhibited at WoodEX for Africa 2025, which was held at the Gallagher Convention Centre in Johannesburg, South Africa. Acacia-Composites Manufacturers offers premium decking and cladding solutions with sustainably designed exhibition booths built entirely from compressed cardboard. Made using 70% intruder bush species and recycled plastic, Acacia’s WPC products are produced in Windhoek and certified to meet stringent European standards. Eike Bolm, business manager of Acacia-Composites, said the presence at WoodEX is more than just an exhibition but a celebration of Namibian ingenuity.  Bolm told Observer Money that while South…
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Namibia can draw lessons from Thailand, Brazil on EVs

Namibia can draw lessons from Thailand, Brazil on EVs

Chamwe Kaira Namibia can learn from countries like Thailand and Brazil, where early adoption of electric vehicles (EVs) was driven by affordable models and supportive infrastructure, not just income levels. A report by Simonis Storm Securities said the rise of Chinese EV brands globally aligns with Namibia’s increasing preference for Chinese vehicles.  This presents a chance for local dealerships and financiers to position themselves early in the EV shift. The report pointed to fuel price volatility, environmental concerns, and investment in home-charging incentives, smart tariffs, and public infrastructure as key drivers that could speed up EV adoption in Namibia.  It…
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Bank Windhoek’s bondholders to receive 9.2% coupon payment

Bank Windhoek’s bondholders to receive 9.2% coupon payment

Chamwe Kaira Bank Windhoek Limited has announced an interest payment on its BWZJ27 listed notes, according to a notice issued on the Johannesburg Securities Exchange (JSE).  Bondholders will receive a coupon payment of 9.2% for the interest period from 28 March 2025 to 28 June 2025.  The total interest amount is N$7.2 million. Payment will be made on 30 June 2025. PSG Capital acts as the debt sponsor for the BWZJ27 notes. Paladin Energy Ltd, which owns the Langer Heinrich uranium mine in the Erongo Region, has appointed Paul Hemburrow as managing director and chief executive officer.  His appointment is…
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