Observer Money

Martin Endjala The Bank of Namibia's August economic outlook predicts that the domestic economy will grow by 3.1 percent in 2024 and by 3.9 percent in 2025. The bank reported that the country’s gross domestic product (GDP) growth is, however, projected to slow down in 2024, due mainly to subdued growth in the global economy, affecting demand for minerals, and prevailing drought conditions. “Real GDP growth is projected to moderate downward to 3.1 percent in 2024, from 4.2 percent registered in 2023. Besides the weak demand, high base effects from the mining industry are expected to exert downward pressure on…

CHAMWE KAIRA The plans to supply water to Botswana from the Namibian coast remains alive, although they have not been included for implementation in the currently approved SS1 (Supply Scenario 1) desalination plant. “Further investigations of viability of SS3 which will supply water to Gaborone will continue to be discussed between the two countries at appropriate platforms,” Lot Ndamanomhata Head of PR and Corporate Communications at NamWater said. The feasibility study on the desalination plant was done in 2021 and the project found viable. Ndamanomhata said cabinet has approved the implementation of the project by way of a Joint Venture…

Namibia's domestic government debt increased by 1.09% in July, rising from N$119.02 billion in June to N$120.32 billion. The primary driver of this growth was the increase in fixed-rate bonds (GCs), which expanded by N$1.05 billion to reach N$70.99 billion. Inflation-linked bonds (ILBs) also contributed to the overall debt rise, increasing by N$120 million to a total of N$9.14 billion. Treasury bills (TBs) saw a more modest increase of 0.31%, with outstanding amounts growing from N$40.06 billion to N$40.18 billion. However, within the treasury bill segment, the outstanding debt on the 91-day TB experienced a decline of 3.59%, reducing to…

CHAMWE KAIRA Standard Bank Namibia Holdings reported to shareholders this week that profit after tax for the period ended 30 June is expected to be substantially higher, by between 35% and 40%, than what was reported for the comparative period. “Therefore, earnings and headline earnings per share for the period ended 30 June 2024 are expected to be substantially higher, by between 35% and 40% (between 95 and 98 cents per share), than what was reported for the comparative period (70 cents),” the company said in a trading statement. The bank advised shareholders that the financial data upon which this…

CHAMWE KAIRA Botswana is planning several rail links with its neighbours including one with Namibia. Botswana already with Mozambique and Zimbabwe have expressed interest to invest in a multimodal regional port and transport infrastructure project that aims to mutually benefit the countries and the region as a whole, Botswana’s Ministry of Transport and Works told Observer Money. Botswana is also developing the Trans-Kalahari Railway (TKR) line project with Namibia. The project aims to construct a railway line from Walvis Bay to the coalfields at Mmamabula in Botswana, complete with rolling stock locomotives and wagons and maintenance facilities. The project will…

CHAMWE KAIRA Members of the Chamber of Mines of Namibia achieved a zero-fatality rate for a third consecutive year in 2023. Notably, the single fatalities recorded in 2021 and 2022 were associated with non-chamber member quarrying operations that mine dimension stone. The efforts were mobilised by the chambers health and safety committee in collaboration with the chief inspector of mines to enhance safety protocols at quarrying operations. The chamber said in its 2023 annual report that these concerted actions have not only improved the safety standards within those operations, but have also had a positive ripple effect across the entire…

CHAMWE KAIRA Andrada Mining Limited has announced that it has completed the N$175 million Bank Windhoek Limited funding agreement. The critical raw materials producer with a portfolio of mining and exploration assets in Namibia, confirmed that its subsidiary, Uis Tin Mining Company had concluded the funding agreements with Bank Windhoek Limited. “These facilities replace UTMC's current banking facilities with immediate effect. The proceeds will be allocated primarily to retirement of existing facilities, growth initiatives, and working capital. The funding has been concluded following the fulfilment of conditions precedent, including receipt of all required consents and documentation.” Anthony Viljoen, Chief Executive…

CHAMWE KAIRA The year on year inflation rate stood at 4.6% in July in the Khomas Region compared to 4.7% registered during July last year. The slowdown in the annual inflation rate emanated mainly from the slow increases registered in the price levels of ‘food and non-alcoholic beverages’ (from 10.4% to 4.8%); education (from 4.5% to 0.6%); and ‘miscellaneous goods and services’ (from 4.4% to 1.6%). For the compilation of inflation, the Namibian Statistics Agency has grouped the country into three zones. Zone 1 is made up of (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi).…

CASPER LABUSCHAGNE Mark Twain famously said: During the gold rush it’s a good time to be in the pick and shovel business”. The mining, minerals and metals sector has certainly on moved on from just picks and shovels, and with that, countries like Namibia which is quickly becoming the next destination for the proverbial gold rush. According to Chamber of Mines in Namibia, mining accounted for 14.4% of the country’s GDP 2023, an increase from 9% in 2021 and 11.9 % in 2022. The sector therefore plays a fundamental role in Namibia’s job and wealth creation, showing consistency steady growth.…