Observer Money

The International Air Transport Association (IATA) reported that US$1.3 billion in airline funds are blocked from repatriation by governments as of the end of April. This is a significant amount, although it is an improvement of 25% compared with the $1.7 billion reported for October 2024. IATA urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations. “Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements…

WANDILE SIHLOBO Maize is essential for Southern Africa’s food security. Its widespread production across this region is somewhat of a barometer of the status of the agricultural output. The past 2023-24 maize production season was challenging following a mid-summer drought that led to poor harvest across the region. Zambia lost half of its maize crop, Zimbabwe lost nearly two-thirds of its maize, and other countries such as Malawi and Lesotho experienced significant losses. South Africa was a slight exception because the impact was less severe than in the region. The country’s maize harvest fell by 23% to 12.7 million tonnes.…

Justicia Shipena  Government revenue from the leather industry is expected to decline following a reduction in export levies.  This week, the Ministry of Finance announced revised export levy rates on skins and hides, effective 1 May 2025.  The levy on raw skins and hides was reduced from 60% to 15%, while the levy on pickled skins dropped from 15% to 10%. “Export levies on raw materials can have a detrimental effect on investment, which will lower the long-term supply of raw resources, by lowering domestic prices in the country while implementing the measures and raising uncertainty,” said economist Josef Sheehama.…

Justicia Shipena The Bank of Namibia (BoN) met with the diplomatic community on Tuesday to discuss economic issues, including the operationalisation of Namibia’s Sovereign Wealth Fund. The meeting highlighted the Welwitschia Sovereign Wealth Fund as a tool for long-term fiscal sustainability and intergenerational equity. The fund, established in May 2022, was initially capitalised with N$260 million. By August 2023, it had grown to N$440 million.  As of February of this year, the fund had reached N$453 million, reflecting an increase of N$193 million since its inception. The fund is structured into short- and long-term investments. It allocates 70% of its…

Justicia Shipena Letshego Holdings Namibia has named Cornelius Kamerika as regional manager for the central and southern regions, effective 1 May 2025. The company announced the appointment on Tuesday. According to Letshego’s communications manager, Ongame Mutorwa, Kamerika will lead regional growth and profitability. He will drive business development, improve operations, and execute sales strategies. “Successful banking is built on the great customer experiences we create and the impact we have on those we serve,” said Kamerika.  He said he aims to build strong relationships with his team, customers, and stakeholders. Letshego Chief Commercial Officer Mbo Luvindao described Kamerika as a…

Robert McGregor Namibia is one of the few countries with pension fund assets exceeding GDP (106.6% of nominal GDP in 2024). These long-term savings are highly regulated, both in terms of what they may be invested in and where they may invest. Following changes gazetted in August 2018, Namibian pension funds have been required to invest at least 45.0% of their total assets in Namibia since 31 March 2019. This requirement, however, was only met by the end of March 2021. Despite a large ‘domestic savings pool’, Namibia's investable universe is constrained. The size of these savings has led to…

Niël Terblanché The Namibian Ports Authority (Namport) recorded a 4.8% increase in cargo throughput for the financial year ending 31 March 2025.  A total of 8.42 million tonnes moved through the Ports of Walvis Bay and Lüderitz, up from 8.03 million tonnes the previous year. Elias Mwenyo, Namport’s commercial executive, said in a statement on Tuesday that the growth reflects strong performance across various cargo segments. “The growth demonstrates the sustained strength of Namport’s operations across bulk, break-bulk, containerised, and liquid cargo segments and is attributed to continued cargo diversification, targeted infrastructure enhancements, and strategic partnerships with key industry stakeholders,"…

Justicia Shipena  Namibia’s foreign exchange reserves grew by 6.6% in April 2025, reaching N$63.6 billion.  This means the country now has enough money saved to pay for about 4.2 months of imports or 5.1 months if one excludes special oil-related imports that are funded from outside. Simonis Storm Securities revealed this in its April 2025 report on private sector credit extension released on Monday. According to Simonis Storm Securities, the rise in reserves is good news for Namibia. “The recovery in reserves reverses the sharp decline seen in March and helps restore external buffers. This improvement strengthens the credibility of…

Justicia Shipena The Capricorn Foundation has committed N$2 million to fight malnutrition in the country through two partnerships.  It will contribute N$600,000 to the Gondwana MealforTwo Programme and N$1.4 million to Genesis Namibia, focusing on the Omaheke Region. The Omaheke region has been hard hit by malnutrition.  In August last year, Governor Pijoo Nganate said the region recorded 30,219 malnutrition cases and over 800 deaths in two financial years.  In January of this year, the governor's office and commercial farmers provided 21 goats to support nutrition efforts in the region. The Capricorn Foundation’s new support builds on an earlier partnership…