Observer Money

Chamwe Kaira  City Lodge Hotels has written down N$13.5 million in Namibia after new tax rules restricted how companies can carry forward assessed losses. The changes, communicated by the Namibia Revenue Agency (NamRA) in September 2024 and from 1 July 2024, losses can  only be set off against taxable income to N$1 million or 80% of taxable income, whichever is higher. Losses may also not be carried forward for beyond five years. “In light of these changes, a N$13.5 million impairment has been recognised,” the group said in its financial statements for the year ended 30 June. In the prior…

Chamwe Kaira  Momentum Metropolitan's Africa operations delivered strong results, with Namibia recording higher corporate protection, new business volumes, and increased retail sales. Growth in Lesotho and Botswana also supported Africa’s overall performance. The Group’s normalised headline earnings rose 41% to N$6.26 billion. Earnings per share grew 46% to 451 cents, reflecting the impact of share buybacks.  Operating profit increased 52% to N$5.48 billion, supported by higher contractual service margin releases, improved mortality and morbidity experience, and strong contributions from Momentum Retail, Metropolitan Life, Momentum Corporate, Momentum Insure, and Guardrisk. Africa’s operating profit declined due to lower market variances, higher new…

Chamwe Kaira  Old Mutual Limited has confirmed the finalisation of its interim dividend, with Namibian shareholders set to receive 37 cents per share.  The company, listed on the Johannesburg, London, Malawi, Zimbabwe and Namibian stock exchanges, declared the dividend on 10 September. The payment will be made on 6 October 2025 to all shareholders, except those on the London register, who will receive their dividends on 3 November.  For Namibian investors, the payout equals 37 cents per share, reflecting the 1:1 parity between the Namibian dollar and the South African rand. South African shareholders will be subject to a 20%…

Staff Writer  In response to a directive from the ministry of finance, Letshego Holdings Namibia and its subsidiaries, Letshego Bank Namibia and Letshego Micro Financial Services Namibia, have suspended all new deduction at source loans for government employees with immediate effect. The company said all new micro-lending loans will now be issued through debit order arrangements and subject to a credit affordability assessment to ensure responsible lending. “While this marks a significant shift in the business landscape, Letshego has been preparing for this transition. Since 2016, the company has strategically diversified its product offering beyond micro-lending to include banking services.…

Chamwe Kaira  The International Finance Corporation’s (IFC) portfolio exposure in Namibia amounted to US$3.08 million (N$53 million) in the financial year ended 30 June 2025, representing 0.01% of its global disbursed portfolio.  This was down from US$10.67 million (N$184 million) in 2024. IFC’s investments in Namibia focus on access to finance, SME support, and infrastructure development, with an emphasis on resilient markets and private capital. IFC, established in 1956 and part of the World Bank, aims to further economic development by encouraging private enterprise in member countries. The corporation reported a net income of US$2 billion in 2025, compared to…

Neville Ntema  Against the backdrop of global markets in flux, imagine an investor nervously scrolling through their phone, eyes darting over headlines filled with policy changes, geopolitical tensions, and consumer behaviour shifts. Each alert brings a fresh wave of anxiety, with tariff shocks, diplomatic standoffs, and rapid technological change shaking confidence. Volatility has become the norm, and uncertainty is likely to remain with us for some time. When faced with turbulence, many investors get distracted by the noise. Yet it is precisely in these moments that discipline matters most. At Momentum Investments, we believe uncertainty highlights the importance of outcome-based…

Chamwe Kaira  Telecommunications investments dropped to N$164 million in the second quarter of this year, down 48% from the previous quarter, the Communications Regulatory Authority of Namibia (Cran) said in its quarterly statistics bulletin.  The regulator said the drop followed major capital spending in the first quarter, including a once-off infrastructure investment by Loc8 Mobile.  “It is also important to note that Telecom Namibia and Paratus Telecommunications continued to make considerable investments during the period,” the report said. Cran reported that cyber-threat events more than doubled during the quarter.  “Reported cyber vulnerabilities also increased by approximately 2%, sustaining an upward…

Chamwe Kaira  Namibia Breweries Limited (NBL) has advised shareholders that operating profit for the six months ended 30 June 2025 is expected to increase by between 75% and 80%.  NBL also said basic earnings per share are expected to grow by between 85% and 90%, while headline earnings per share will rise by between 90% and 95%, compared to the same period last year.  “This increase is driven by strong volume performance in Namibia, benefits from locally packaged wine plus cider and disciplined cost management,” NBL said.  Interim financial results will be released on or about 19 September. In the…

Chamwe Kaira  Data consumption increased by 8% in the second quarter of 2025, while data revenue declined by 1.2%, the Communications Regulatory Authority of Namibia (Cran) reported.  This balanced the N$800 million revenue level reached in the last quarter of 2024 after several quarters of around N$700 million.  The decline in revenue despite higher consumption was linked to free data promotions by operators. The revenues from voice and SMS continued to fluctuate. SMS revenue dropped by 14%, while voice revenue fell by 6%. During the quarter, ICT revenue increased by 1%, but operating expenses increased by 4%. Social media accounted…

Staff Writer  The Motor Vehicle Accident Fund’s (MVA Fund) proposal to introduce new levies on locally registered vehicles, foreign-registered vehicles, and electric vehicles signals a shift in how Namibia finances its road accident compensation system. Marco Pulse of Simonis Storm Securities said the MVA, which relies heavily on a N$N$0.47 per litre fuel levy, is facing sustainability challenges.  He noted that as vehicles become more fuel efficient and electric vehicle adoption expands, fuel levy revenue is no longer keeping up with the fund’s growing obligations, such as trauma care, rehabilitation, and loss-of-income payouts. “This decoupling of road use from fuel…