Observer Money

Allexer Namundjebo The director of banking services at the Bank of Namibia (BoN), Sencia Kaizemi-Rukata, says any shop or merchant refusing to accept the five-cent coin  should be reported. She reminded retailers that the coin remains legal tender.  Kaizemi-Rukata was speaking at the economic reporting workshop hosted by BoN on Monday. “If there is any shop refusing to accept the coin or South African rand, those shops must be reported so that appropriate actions are taken,” she said.  She stressed that although the minting of the five-cent  coin stopped in 2018, it has not affected its legal status. “The five-cent…

Chamwe Kaira  Uranium is exempt from new  US tariffs because of its strategic importance to the United States, Bank of Namibia (BoN) governor Johannes !Gawaxab has said.  Speaking during a monetary policy dialogue in Windhoek, he explained that minimal impact is expected on uranium due to existing contractual obligations.  He added that uranium will also benefit from the weaker exchange rate, which will improve revenue and profitability. He noted that no tariffs were previously applied to diamonds, which helped natural diamonds remain competitive against cheaper lab-grown diamonds.  “The introduction of a 15% tariff will potentially negatively affect export volumes and…

Chamwe Kaira  The upgrading of the railway line between Kranzberg and Otjiwarongo is gaining momentum, with sites already handed over to the contractor. Equipment for the project is expected to arrive soon, while other works, goods and services are still at documentation or procurement stage, according to Robert Kalomho, a senior official at the ministry of works and transport.  The project is funded by the African Development Bank Group (AfDB).  Kalomho said all 11 components under the transport infrastructure improvement project phase I, which involved upgrading the Walvis Bay to Kranzberg railway line, have been completed. In October 2023, the…

Letshego has delivered another set of commendable interim results, reinforcing the consistent and stable growth we have observed over the past two years within the Namibian market.  The group’s deduction-at-source lending model remains a unique differentiator, and its continued adoption by more Namibian employers underscores the strength of this proposition. That said, we believe it is prudent to question the long-term sustainability of this model, particularly around the potential for regulatory intervention on interest rate caps.  The recent collaboration with MTC to launch Taamba Maris introduces an exciting new avenue for diversification. While the near-term earnings impact will be limited,…

Chamwe Kaira  Namibia is on target to redeem the US$750 million eurobond when it matures in October, according to Nicholas Mukasa, director of financial markets at the Bank of Namibia. “As far as the Eurobond redemption is concerned, all I can say is that we are on target to redeem that bond when it matures in October,” Mukasa said. In her budget speech in March, minister of finance Ericah Shafudah said the 2025/26 financial year would be eventful, with the government facing the redemption of the eurobond on 29 October.  By March, the government had accumulated US$463 million in the…

Chamwe Kaira  Angola’s economic downturn has negatively affected northern Namibia for nearly five years, according to Bank of Namibia (BoN) deputy governor Ebson Uanguta. He said this in response to a question by Observer Money on the impact of Angola’s economic situation on Namibia. “When trade was thriving, Oshikango was a booming town, but business activities have since slowed down. The impact has already been felt for a number of years now, there is nothing new,” Uanguta said. BoN projects Angola’s economic growth to slow to 2.4% in 2025 and 2.1% in 2026, down from 4.5% in 2024.  The slowdown…

Chamwe Kaira  B2Gold has rehabilitated 19% of the disturbed footprint at its Otjikoto Mine, covering 165 hectares. The company shared the update at the recent Mining Expo and Conference in Windhoek.  It has planted 10 100 seedlings from 18 indigenous species and restored about 20 hectares with grass species and soil-enhancing material. B2Gold said its non-obligatory rehabilitation fund ensures that rehabilitation obligations will be met by the end of the mine’s life. The mine has also reduced Heavy Fuel Oil (HFO) consumption by more than three million litres a year.  From 2014 to 2018, the Otjikoto Power Plant ran entirely…

Chamwe Kaira  Standard Bank Namibia Holdings reported a 2.9% increase in interest income to N$1.1 billion for the six months ended 30 June.  The growth was supported by an 8.8% rise in gross loans and advances to customers and an 18.4% increase in other interest-earning assets. Lending activity started slower than expected, which limited the impact on average balances, a key driver of net interest income.  A cumulative 100 basis point cut in the repo rate also reduced margins. Non-interest revenue rose by 3.6% to N$792.7 million, driven by higher client activity and greater use of digital services.  Net fee…

Chamwe Kaira  Navachab Gold Mine at Karibib plans to spend N$4 billion on an exploration drilling programme over the next four years.  The managing director of Navachab Gold Mine, George Botshiwe, said the ore body is now too deep for open-pit mining. The mine also produces silver as a by-product. Opened in 1989 with a planned lifespan of nine years, the mine has since expanded its processing capacity but has faced challenges such as limited water, power supply, and funds.  Located 10km from Karibib and 180km west of Windhoek, Navachab has been owned by QKR NMH since acquiring it from…