Observer Money

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.…

Airlink, Southern Africa’s premier airline, is expanding its network to include direct Cape Town-Gaborone flights from 1 April 2025. Flights on the route will operate on Tuesdays, Thursdays and Saturdays departing Cape Town International Airport at 10.50 and arriving at Gaborone’s Sir Seretse Khama International Airport at 13.00. The return service leaves Gaborone at 13.45 and lands in Cape Town at 16.00. “As Botswana’s capital, Gaborone is an important regional destination for business with the city being home to thriving minerals, resources, automotive and tech sector companies and it hosts the Southern African Development Community headquarters. It is also an…

Martin Endjala Only applicants who have completed the minimum exploration work program and shown they have the financial and technical resources to carry out their programs will receive Exclusive Prospecting Licences (EPLs). The minister of mines and energy, Tom Alweendo, made this statement at the official opening of the 2024 Mining Expo and Conference in Windhoek on Wednesday. “This is necessary lest we delay mineral discoveries and consequently deprive the Namibian people of their deserved economic benefits,” he said. According to Alweendo, the ministry found that the majority of applicants who previously received EPLs lacked the necessary skills to carry…

CHAMWE KAIRA The Bank of Namibia’s stock of international reserves increased by 3.7% month-on-month to N$57.6 billion at the end of June. The monthly increase in international reserves was on the back of higher net commercial bank inflows, supported by Customer Foreign Currency (CFC) placements, as well as revaluation gains due to price changes in the market. The foreign reserves translated into 3.8 months of import cover, exceeding the international benchmark of three months. “This level of reserves is considered adequate to support the Namibia Dollar and the South African Rand currency peg. Notably, the import cover excluding imports of…

CHAMWE KAIRA Dundee Precious Metals Tsumeb has from June last year to June this year transported 198 068 tons of bulk copper complex concentrate, 34 839 tons of blister copper and 255 929 tons of sulfuric acid via TransNamib’s railway services. “We primarily transport bulk copper complex concentrates from the coast to the smelter. Once processed, the final product, blister copper, is transported from Tsumeb to the port for easy distribution to our clients worldwide,” the company said in response to questions. Additionally, the company utilises TransNamib to transport sulfuric acid, a byproduct of its smelting process, to its clients…

CHAMWE KAIRA Goods worth of N$6.8 billion, representing 52.8% of total exports left the country by sea in June, the Namibia Statistics Agency said. The basket of exports via sea comprised mainly of uranium, fish and copper and articles of copper. Goods exported via air accounted for 26.7% of total exports, of which its export basket was mainly made up of diamonds and non-monetary gold. Lastly, Road transportation accounted for 20.5% with fish, petroleum oils and live animals being the highest valued commodities transported via the respective mode. In terms of volume, a total of 281 689 tons of goods…

This week, Eng. Stephen Dihwa, Executive Director, Southern African Power Pool Coordination Centre (SAPP) talks about the impact that the proposed Baynes Hydropower project by Namibia and Angola will have on the southern African region. Observer Money (OM): The Namibian government has approved the signing of the agreement to develop the Baynes Hydropower project with Angola, what does the Baynes Hydropower project mean for SAPP? Stephen Dihwa (SD): Baynes Hydropower Power project will provide much needed additional clean power supply in the SADC Region starting with Namibia. As Angola will then be interconnected to the rest to the region, this…

CHAMWE KAIRA Bankers Association of Namibia (BAN) has said the issue of interest rates and perceived high bank charges that props up from time to time was just one of the many issues that was discussed with President Nangolo Mbumba last week. “The meeting was a mere catch up with him on what we have been doing in our space to assist new industries, create employment and assist with economic development. This is an old issue coming from last year that he touched on, with many other constructive issues. So, it’s not a new issue that cropped up now. BAN…