Observer Money

Chamwe Kaira  FNB Namibia predicts that agriculture, mining, and tourism will drive economic growth in 2026, despite the presence of risks. FNB market research manager Mandisa Van Wyk said cyclical improvements in agriculture are likely to support the primary sector and related industries such as meat processing. Mining output is also expected to improve, supported by renewed oil and gas exploration.  She said TotalEnergies’ anticipated final investment decision mid-year could boost investor interest. Van Wyk said the electricity and water sectors are expected to gain momentum as investment in water security and power generation continues. “Tourism is also poised for…

Chamwe Kaira  Critical minerals producer Andrada Mining has expanded its drilling programme at the Lithium Ridge project in the Erongo Region after reporting strong lithium results. The company released a second batch of diamond drilling results, confirming high-grade lithium oxide intersections across several drill holes. It also found tin and tantalum in all reported holes. Among the key results, drill hole LRD031 returned 21.33 metres grading 1.24% lithium oxide, including 7.20 metres at 1.99%. Another hole, LRD025, returned 16.24 metres at 1.04% lithium oxide from near the surface, while LRD022 delivered 10.87 metres at 1.38%. These results build on an…

Chamwe Kaira  Paladin Energy says its Langer Heinrich Mine ramp-up remains on track and is expected to be completed by the end of the 2026 financial year. The company restarted the mine in 2024 after completing a US$120 million project focused on repairs, refurbishment and removing production bottlenecks to improve plant availability and runtime. Since the restart, the mine has fully returned to mining operations. Processing performance has improved over time, supported by higher ore feed grades and better recovery rates.  The company also reported record ore throughput and stronger uranium sales. Because of this progress, Paladin upgraded its 2026…

Staff Writer  Simonis Storm says private sector credit extension (PSCE) growth of 4.3% in March appears stable but hides different trends within the credit market. The firm said the headline number combines household and business credit flows but gives a misleading view of a uniform slowdown. The data shows a split between corporate and household borrowing. On the corporate side, the slowdown in March was driven by a sharp change in overdraft credit. Growth moved from 5.4% in February to a contraction of 2.6% in March.  The firm said this is mostly seasonal and linked to year-end balance sheet adjustments…

Frank Kernstock Namibia has significant industrial ambitions. Green hydrogen, oil and gas, mining, marine engineering and heavy fabrication are all sectors in which this country has genuine competitive potential.  But ambition without capability is just aspiration. One of the most consequential structural gaps holding back Namibia’s industrial development agenda has been competent internationally recognised welding personnel such as welding engineers, welding coordinators and welders. Welding is classified as a ‘special process’: one whose quality cannot be fully verified by inspection after the fact. To consistently deliver world-class products, you need more than trained hands. You need quality management systems such…

Staff Writer As winter approaches, Namibia is expected to experience drier and windier conditions, especially in inland and coastal areas. The chief executive officer of Santam Namibia Limited Franco Feris says these seasonal changes bring weather-related risks that homeowners and motorists should not ignore. “While many people associate winter in Namibia with dry and sunny weather, it is still important to be proactive before the season hits to ensure you are financially protected against potential damage caused by adverse conditions.” He said winter brings risks to homes, vehicles and household items, including fire. “People typically think of risks associated with…

Mauriza Fredericks  Most people like to believe they make sensible financial decisions. That money choices are driven by maths, planning and good intentions. In reality, money is emotional long before it becomes practical. Think about the last time you delayed an important decision. Not because you did not understand it, but because it felt uncomfortable.  Or the purchase you made even though you knew it was not the best use of your money, but it made you feel secure, successful or in control. These moments reveal a truth we often avoid. Money is rarely just about numbers. We are shaped…

Chamwe Kaira International reserves held by the Bank of Namibia rose slightly to N$51.8 billion at the end of March. Reserves increased by 0.1% on a monthly basis. The rise was supported by strong inflows of South African rand from commercial banks and customer foreign currency placements. At this level, reserves provided about 3.2 months of import cover, or 3.6 months when excluding oil and gas exploration imports. The reserves were about 9.5 times the currency in circulation. This is seen as sufficient to support the Namibian dollar’s peg to the South African rand and meet short-term international obligations. Money…

Chamwe Kaira Namibia’s mining sector contracted by 9.4% in 2025 due to lower diamond output, reduced metal production and weaker global demand but still generated N$64.18 billion in sales revenue. Launching the 2025 Chamber Annual Review in Windhoek, Chamber of Mines chief executive Veston Malango said the sector remained a key part of the economy despite global pressures such as geopolitical tensions, slower trade and uneven growth in major economies. Mining contributed about 14% to Namibia’s gross domestic product, remaining the largest contributor among primary industries. Malango said production trends varied across commodities, with uranium and gold supporting the sector…

Chamwe Kaira Namibia’s financial system remained stable in 2025, although global uncertainty and rising links between government finances and the financial sector continue to pose risks. The Bank of Namibia (BoN) and Namibia Financial Institutions Supervisory Authority (Namfisa) released the April 2026 Financial Stability Report outlining conditions across the system. The report shows that risks in key areas, including the economy, household debt, public debt, banking, corporate debt, payment systems and non-bank financial institutions, remained largely unchanged during the year. BoN and Namfisa said external shocks, cyber threats and closer ties between government and the financial sector remain key risks.…