Observer Money

Chamwe Kaira  Windhoek’s approved building plans fell by 12% month-on-month, dropping from 226 in September to 198 in October, economic analyst Almandro Jansen of Simonis Storm said. On an annual basis, approvals were down 19%, showing slow construction activity in the capital. Swakopmund moved in the opposite direction. The coastal town recorded an 80% rebound from 85 to 153 approvals. Year-on-year, it posted a 119% increase, supported by a low 2024 base and stronger sentiment linked to tourism, relocations and future energy-sector activity. Windhoek remains Namibia's main growth centre, with an average of 179 approvals per month this year.  “But…

Chamwe Kaira  S&P Global Ratings has upgraded South Africa’s long-term sovereign ratings, raising the country from ‘BB-’ to ‘BB’ for foreign currency and from ‘BB’ to ‘BB+’ for local currency.  The outlook is positive, the South African National Treasury said. South Africa is one of Namibia’s biggest trading partners. In September, it was Namibia’s largest export destination with a share of 17.8%. Botswana followed with 14%. Zambia, China, and the UAE were also among Namibia’s top five export markets. South Africa remained Namibia’s main source of imports, accounting for 33.3% of all goods entering the country.  China held 10.8%, while…

Chamwe Kaira  Four sources have confirmed that TotalEnergies, Chevron and other oil majors are leading the race to buy a 40% stake in Galp Mopane in Namibia, Reuters reported this week.  Galp said it will announce the winning bidder and the estimated resources of Mopane by year-end. Namibia has continued to attract international oil companies after several major finds since 2022.  The National Petroleum Corporation of Namibia (Namcor) says the discoveries point to Namibia’s potential to rank among the world’s top 15 oil producers by 2035, even though the country does not yet produce hydrocarbons. TotalEnergies and Chevron declined to…

Karen van der Merwe  In an era defined by convenience, speed, and personalisation, the banking industry is undergoing a quiet revolution. No longer confined to branches or apps, banking is becoming embedded in the everyday lives of customers – woven into the experiences they value most. This shift from banking-as-a-product to banking-as-a-lifestyle marks a strategic transformation in how financial institutions must operate to remain relevant. For decades, banks focused on offering products – accounts, loans, cards – designed around internal capabilities. But as technology reshapes consumer expectations, the competitive edge now lies in curating experiences, not just selling services.  Customers…

Staff Writer  Lewis Group has posted strong unaudited results for the six months ended 30 September 2025, recording double-digit revenue growth, wider profit margins and a sharp rise in operating profit.  The retailer also declared an interim cash dividend of 337 cents per share. The Group has 27 stores in Namibia. In 2015, it acquired 21 local outlets, adding to its existing six. Despite a tough trading environment, Lewis continued to invest in long-term growth by expanding its store network and growing its credit customer base.  The debtors book grew by 14% to N$8.5 billion, supported by strict credit-granting rules…

Chamwe Kaira Momentum Africa recorded normalised headline earnings (NHE) of N$192 million for the quarter ending 30 September.  The company said the result was driven by the release of the contractual service margin in the life business, premium growth, and lower claims ratios in the Namibia and Ghana health portfolios.  Positive market variances of N$35 million from Namibia and Botswana also supported earnings. Investment income strengthened the result through bond returns and capital gains on bond assets after a reduction in Namibia’s yield curve.  “This result was partially dampened by increased new business strain in Lesotho and Botswana, driven by…

Chamwe Kaira The Langer Heinrich Mine (LHM) in the Erongo region, owned by Australia-based Paladin Energy, has maintained strong operational performance and reinforced its role in the company’s global uranium portfolio. Latest updates show that Langer Heinrich delivered 3 million pounds of uranium oxide (U₃O₈) during the 2025 financial year. This marks its full return to large-scale production after years under care and maintenance.  The mine recorded a cost of production of US$40.2 per pound, reflecting improved efficiency as its processing systems stabilised. The momentum continued into the first quarter of the 2026 financial year. The mine produced 1.06 million…

Staff Writer Phase one of the Universal Service Fund (USF) rollout has begun, with MTC handing over the first completed network tower under the programme.  The tower was officially commissioned this week by minister of information and communications technology Emma Theofelus at Epinga village in the Ohangwena region. MTC managing director Licky Erastus said Epinga is one of four USF sites completed so far. “In addition to Epinga, we have completed sites in Hedimbi, Ehomba, and Ongongo. While pending completions are Naimanya, Kudumbu/Mupapama, Owiwi in the Kavango West and Gwatjinga and Shinyashi in the Kavango East Region. Civil works have…

Ian Coffee  Namibia’s property market is undergoing a structural transformation that few anticipated. The past year has revealed stark contrasts between luxury real estate, affordable housing, and rental dynamics. These shifts are not merely cyclical; they reflect deeper economic and social forces that will shape investment strategies for years to come. The luxury segment has entered a pronounced downturn. Only six transactions were recorded in the second quarter of 2025, and prices have fallen by 32.5% year-on-year. This decline signals more than temporary weakness; it underscores a collapse in speculative demand and a sharp reduction in mortgage uptake. For investors…

Staff Writer Pepkor Holdings has received a boost from Moody’s Investors Service after the agency completed its latest review of the retail group.  The review resulted in no changes to Pepkor’s credit ratings, confirming the company’s solid financial position in a difficult economic climate. Moody’s kept Pepkor’s Corporate Family Rating at Ba2 and its National Scale Long-Term Rating at Aa1.za.  Both ratings carry a stable outlook. The agency said the ratings reflect Pepkor’s strong position in South Africa’s retail sector, supported by conservative financial management, good liquidity, and strong credit metrics. Moody’s noted that the group continues to deliver growth…