Observer Money

NamPower, managing director, Kahenge Haulofu talks to Observer Money about the power supply situation this winter. He explains that the company spends up to N$4 billion per year on imports. He also explains that NamPower applied for a tariff increase 14,59% but the Electricity Control Board (ECB) only approved a bulk tariff increase to 8%. Observer Money (OM): Winter is fast approaching and Zambia has already indicated that it will reduce exports. Is Namibia affected by possible reduced imports from neighboring countries? Kahenge Haulofu (KH): Yes, currently NamPower is currently affected with an export reduction totaling 60MW from the Zambian…

CHAMWE KAIRA Cleanergy Cleanergy Solutions Namibia has revealed that the first hydrogen-powered ship in Africa will be ready in two years’ time. The company together with CMB.TECH, Port of Antwerp Bruges and Namport, plans to launch the first hydrogen-powered ship in Africa. Currently, the company is in the process of finalising the technical design of the vessel in a team work between CMB.TECH, Cleanergy, PoAB and Namport. “We believe that a period of about 24 months is required before the vessel can be delivered to Namport. Financing of the project will come from various sources -own equity, bank and other…

CHAMWE KAIRA The Namibian Competition Commission (NaCC) is currently busy determining whether to sanction the takeover of Osino Resources Corp of Canada by Yintai Gold Company of China. In the same process, the NaCC is considering the approval of the deal involving the sale of Dundee Precious Metals’ owned Tsumeb smelter to Sinomine Resource Group Group also of China. NaCC spokesperson Dina //Gowases told Observer Money that the commission is currently busy with the investigation to determine the deal but added that the determination depends on the complexity of issues identified during the investigation. Yintai plans to take over Osino…

Leading asset management company, Namibia Asset Management (NAM) has said the decision by the Financial Action Task Force to greylist Namibia due to purported ongoing noncompliance with the requirements of international anti-money laundering (AML) legislation is a concern. “Although we do not anticipate a negative impact on local assets and clients, it's imperative for Namibia to exit this list in order for us attract and retain foreign direct investment,” the company said. Another concern is the regulatory changes that it anticipates will come into effect when the Financial Institutions and Markets Act (FIMA) is promulgated and NAM said dealing with…

PPS Namibia says it delivered a satisfying performance in 2023, surpassing most competitors despite navigating a challenging, low-growth economy. PPS Namibia recorded an operating profit of N$49,3 million. The total net (of reinsurance) claims increased from N$73,6 million to N$83.3 million. Gross insurance premium revenue increased year on year by 9% from N$213,3 million to N$233,3 million. The company said its members in Namibia also benefitted from the good investment market returns in 2023. Investment returns distributed to members’ PPS Profit-Share Accounts have increased from N$4,7 million in 2022 to N$176.9 million in 2023. “We continue to adhere to the…

The Trans-Kalahari Railway Project Management Office (TKR-PMO), has invited proposals for consultancy services for the development of a comprehensive request for proposal (RFP) document for the Trans Kalahari Railway Project. The Trans-Kalahari Railway Project (TKR) is a bilateral project between and Botswana and Namibia. The initial objective of the project was to construct a railway line (heavy haul) linkage between the two countries to transport coal and other commodities to the overseas market, through ports in Namibia. Botswana and Namibia commenced the discussions in 2010 as signified by the Memorandum of Understanding (MOU). A prefeasibility study, regarding this project, was…

The decline in completed building projects can be primarily attributed to elevated interest rates. At the beginning of 2023, the repo rate stood at a modest 6,75% in January, subsequently rising to 7% by March's end. This relatively low rate facilitated accessible borrowing, leading many individuals to secure loans from banks for property construction and renovation, according to Simonis Storm Securities. The current repo rate, now at 7,75%, has resulted in a decline in borrowing due to its heightened cost implications, the firm noted. “In addition to high interest rates, other contributing factors include the soaring prices of building materials…

Anglo American has rejected the latest takeover bid by BHP Group Limited. The takeover bid has implications for Namibia because Anglo American owns De Beers, which is a partner with the government in Namdeb Holdings, Debmarine Namibia and the Namibia Diamond Trading Company. Chamber of Mines of Namibia data, showed that Debmarine Namibia produced 1,7million carats in 2022, an increase of 52% from 2021, covering an area of 19,1 square kilometers. The increase in production was primarily driven by the introduction of the MV Benguela Gem. The new recovery vessel, the MV Benguela Gem, was completed ahead of schedule; commissioning…

Pick n Pay Stores Limited has informed shareholders through a cautionary announcement released on the Johannesburg Stock Exchange that the board has approved a two-step recapitalisation plan. The recapitalisation plan will comprise a rights offer to existing shareholders of the Company of up to R4 billion, expected to take place in mid-2024, followed by an offering and listing of the Group’s Boxer business on the Main Board of the JSE expected towards the end of 2024. Pick n Pay said the terms and conditions of the recapitalisation plan are being refined in consultation with the board and the final recapitalisation…

The manufacturing industry emerged as the industry with the largest export of goods in March valued at N$5 billion, absorbing 59,4% of total exports, products from the industry increased by N$57 million when compared to the previous month. Mining and quarrying industry came in second position with a share of 33,5% of the total export in March, the Namibia Statistics Agency said. Exported goods from this industry increased by N$2 billion when compared to the previous month. Furthermore, agriculture, forestry and fishing industry ranked third, contributing 4,9% of the total export of goods The demand side was largely dominated by…