Observer Money – Page 27 – Windhoek Observer

15 Aug

Repo cut to revive consumer spending

ObserverObserver MoneyBank of Namibia, Economist Halleluya Ndimulunde

CHAMWE KAIRA Economist Halleluya Ndimulunde believes that a reduction in the repo rate generally leads to lower borrowing costs for both households and businesses. The Simonis Storm Security economist said in the aftermath of Bank of Namibia cutting the interest rate by 25 basis points down to 7.50%, that this may encourage a revival in private sector credit extension, which has been subdued, as confidence in a less restrictive monetary policy environment grows. “Overall, this rate cut is likely to stimulate economic activity by improving access to credit, thereby supporting increased spending and investment across the economy,” said Ndimulunde. Additionally,…

15 Aug

Standard Bank’s profit grows 38% to N$505m

ObserverObserver MoneyStandard Bank Namibia Holdings, World Economic Outlook

CHAMWE KAIRA Standard Bank Namibia Holdings profit grew by 38 % in the six months ended 30 June to N$505.7 million, the company said in interim results. The cost-to-income ratio decreased to 54.9% from 58.2% in June 2023 and return on equity improved from 15.6% in December 2023 to 18.6% in June this year. Standard Bank said net interest income increased by 18.3% to N$1billion. This increase is attributable to the growth in loans and advances to customers of 5% and the realisation of funding optimisation strategies, which improved the net interest margin to 6%, the results showed. Credit impairment…

15 Aug

Letshego to increase local ownership

ObserverObserver MoneyEmployee Share Option Plan (ESOP, Letshego Africa Holdings Limited

CHAMWE KAIRA Letshego Holdings Namibia has approved the Letshego Holdings Namibia Employee Share Option Plan (ESOP) Trust and this will see transfer of the trust shares from Letshego Africa Holdings Limited to the trust. The approval was made on during an annual general meeting held in Windhoek. The meeting also approved the final dividend of 36,38 cents per share paid to shareholders. In terms of the Banking Institutions Act 13 of 2023, Letshego Holdings Namibia is required to increase its level of local Namibian equity ownership to 25%. Pursuant to this requirement, Letshego plans to implement the ESOP, the aim…

15 Aug

Life Healthcare acquires renal dialysis clinics

ObserverObserver MoneyFresenius Medical Care (FMC), Life Healthcare Group

Life Healthcare Group, a leading private healthcare organisation and South Africa’s second-largest private hospital group has acquired five Namibian renal dialysis clinics from Fresenius Medical Care (FMC). The take on date of the Namibian renal dialysis clinic is today and includes clinics in Oshakati, Otjiwarongo, Swakopmund and Windhoek (Eros and Kleine Kuppe). This is in addition to Life Healthcare also taking on 38 renal dialysis clinics in South Africa. The acquisition expands Life Healthcare’s renal dialysis footprint to 76 clinics across southern Africa. Life Healthcare has more than 20 years’ experience in providing renal dialysis services to chronic kidney patients…

15 Aug

Trustco gives 9,3 million shares to directors

ObserverObserver MoneyQuinton van Rooyen

CHAMWE KAIRA Trustco Group Holdings Limited has proposed a one-time issuance of equity instruments to the Independent Non-Executive Directors (INEDs). The proposed share allocation is a total of 9 500 000 ordinary shares and will be issued as follows: Adv. Raymond Heathcote SC, Chairperson: 3 000 000 ordinary shares, Winton Geyser, Chairperson of the Audit and Risk Committee: 2 000 000 ordinary shares, Renier Taljaard, Independent Non-Executive Director: 1 500 000 ordinary shares, Janene van den Heever, Independent Non-Executive Director: 1 500 000 ordinary shares, Tom Newton, Independent Non-Executive Director: 500 000 ordinary shares, Richard Chetwode, Independent Non-Executive Director: 500…

15 Aug

Diamond mining to lose shine

ObserverObserver MoneyUranium growth

CHAMWE KAIRA The diamond mining sector is expected to register a contraction during 2024 and relatively low growth rates during the remainder of the forecast period, mainly due to weakened global demand and shifting of demand from natural diamonds to lab-grown diamonds, based on the latest Bank of Namibia latest statistics. The central bank added that growth of the uranium mining sector is expected to slow in 2024 on account of stripping activities at some of the mines. Uranium growth is then anticipated to increase in 2025, supported by improved spot prices. The agriculture, forestry and fishing sector is projected…

15 Aug

Letshego profits expected to be 15% to 20% higher

ObserverObserver MoneyLetshego Holdings Namibia Limited

CHAMWE KAIRA Letshego Holdings Namibia Limited reported to shareholders that profit after tax for the six months ending 30 June 2024 is expected to be materially higher, by between 15% and 20%, than what was reported for the comparative period. “Therefore, earnings per share and headline earnings per share for the six months ending 30 June 2024 is expected to be materially higher, by between 15% and 20%, than what was reported for the comparative period,” the company said. The company advised that the financial data upon which the trading statement is based have not been reviewed or reported on…

15 Aug

Time to unlock Africa’s tourism potential

ObserverObserver MoneyAfrica’s tourism

Africa is experiencing a tourism renaissance. Since 2022, the continent has seen a remarkable turnaround in its tourism fortunes, and it is enjoying an influx of foreign currency. Experts agree that now is the time to capitalise on this renewed interest in Africa as a tourist destination, as opportunities like this don’t come along very often. “Africa is in the best possible position to benefit from post-pandemic travel. In terms of tourism, the continent has grown significantly post-Covid 19, and according to the United Nations Tourism Report 2024, the continent has achieved a 96% recovery, which is driven by European…

15 Aug

B2Gold produces 48 143 ounces of gold

ObserverObserver MoneyOtjikoto Mine

CHAMWE KAIRA The Otjikoto Mine continued to outperform during the second quarter of 2024, producing 48 143 ounces of gold, above expectations as a result of higher than anticipated mill feed grade, B2Gold Corporation said. For the second quarter of 2024, mill feed grade was 1.79 grams per tonne (g/t), mill throughput was 0.85 million tonnes, and gold recovery averaged 98.6%. B2Gold said ore production from the Wolfshag underground mine for the second quarter of 2024 averaged over 1500 tonnes per day at an average grade of 4.69 g/t gold. As of the beginning of 2024, the probable mineral reserve…

15 Aug

Bannerman Energy raise N$110m for project

ObserverObserver MoneyDefinitive Feasibility Study (DFS), Etango Project

CHAMWE KAIRA Bannerman Energy Ltd has raised N$110 million by issuing new shares to investors. The money that was raised will be used for the developing of the Etango Project in the Erongo Region. The company confirmed that following the receipt of shareholder approval at the general meeting held on 12 August, tranche two of the placement announced 28 June had been successfully completed. Accordingly, the company has today issued 2,830,765 new fully paid ordinary shares to new and existing institutional and sophisticated investors at an issue price of A$3.30 per. The new share will raise gross proceeds of approximately…