Observer Money

CHAMWE KAIRA NamPower plans to spend N$15.6 billion on capital projects over the next five years. The company presented figures during a stakeholders meeting on Wednesday.  The company warned that load shedding would harm the economy and explained its commitment to supplying energy at all costs to avoid such negative impacts.  Rising commodity prices, which have surged significantly above inflation, and increasing funding costs were also highlighted as challenges. This year, the Electricity Control Board (ECB) withdrew its approval for an 8% tariff increase for 2025. NamPower said if allowed, it would have applied for an 8.7% increase. The company…

CHAMWE KAIRA  FirstRand Namibia has said while the Namibian economy faces some near-term challenges, there are strong reasons for optimism heading into 2025. The firm said certain key sectors in the primary industry, such as oil and gas exploration, uranium, copper and agriculture, coupled with supportive policy measures, should lay the foundation for sustained economic growth in the medium term, according to the FirstRand consolidated interim financial results and cash dividend declaration for the period ended 31 December 2024. The group remains well positioned to participate in opportunities in the oil and gas sector as they emerge, the firm said. …

CHAMWE KAIRA  The Bank of Namibia’s stock of international reserves increased at the end of January and rose to N$64.3 billion, reflecting a month-on-month increase of 2.1%.  The monthly increase in reserves was predominantly driven by inflows of N$7 billion from SACU. This level of international reserves translates into 4.2 months of import cover. When excluding oil exploration and appraisal activities, which are mainly financed from abroad, it stood at 5.2 months of import cover at the end of January, the central bank stated. Banking industry cash holdings increased in January, with cash balances within the banking industry increasing to…

CHAMWE KAIRA  Leading agriculture and Namibia Stock Exchange-listed company Agra expects profit after tax, basic earnings per share and headline earnings per share for the interim period ended 31 January 2025 to increase by between 45% and 55% compared to the previous period. “This trading statement has not been reviewed or reported on by Agra’s auditors and shareholders are advised to exercise caution when dealing in the shares until the publication of the interim financial results for the year ended 31 January 2025. The interim results will be released on or about 14 March 2025,” Agra said.  In the financial…

CHAMWE KAIRA  Oryx Properties Limited is of the opinion that the property market continues to show improvements supported by a projected expansion of the Namibian economy by 4% in 2025. The company said in unaudited interim results for the six months ended 31 December 2024 that the positive economic trajectory is driven by urban development and infrastructure projects, which continue to increase demand for both residential and commercial properties.  “Our strategic investments in high-growth areas, growth momentum in line with our strategy and our commitment to sustainable building practices position us well to capitalise on these trends,” the company said.…

CHAMWE KAIRA  Copper ores and concentrates emerged as the largest contributor to the country’s trade deficit, having recorded a deficit of N$1.5 billion in January. Following in second place was petroleum oils, which posted a deficit of N$1.0 billion, while aircraft and associated equipment ranked third after posting a deficit of N$469 million. Contrary to the deficits, the country recorded trade surpluses on non-monetary gold amounting to N$1.8 billion. The second and third places were occupied by uranium and fish, which recorded trade surpluses of N$1.4 billion and N$1.2 billion, respectively; this is according to the Namibia International Merchandise Trade…

CHAMWE KAIRA  Paratus Namibia Holdings Limited has advised shareholders in interim results for the period ended 31 December 2024 that headline earnings per ordinary share (HEPS) are anticipated to be substantially lower (greater than 30%) in relation to the 31 December 2023 comparative period. Paratus said basic earnings per ordinary share (BEPS) are anticipated to be substantially lower (greater than 30%) in relation to the 31 December 2023 comparative period. Revenue for the period is anticipated to be materially higher (between 10% and 30%) in relation to the 31 December 2023 comparative period; and earnings before interest, tax, depreciation and…

The Johannesburg Stock Exchange (JSE) has announced notable earnings growth for its 2024 financial year during a period of heightened geopolitical tensions and muted economic growth in the first half of 2024. The robust performance for the bourse was supported by business resilience and stability as well as increased revenue diversification through its non-trading business segments. The group reported an increase in net profit after tax (NPAT) of 10.4% to R918 million with a return on equity (ROE) of 20.2%, up from 19.4% in the prior year. The JSE’s share price outperformed headline indices, delivering 30% year on year growth…

CHAMWE KAIRA  Andrada Mining Limited, a critical raw materials producer with mining and exploration assets in Namibia, has announced that the Namibian Competition Commission (NaCC) has approved the company’s earn-in agreement with Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (Pty) Ltd. The NaCC approval is the final outstanding condition precedent to implement the agreement. Under the agreement, SQM has the right to earn up to a 50% interest in Grace Simba Investments (Pty) Ltd. (GSI), a wholly owned subsidiary of Andrada Mining (Mauritius) Limited, which holds the Lithium Ridge licence.  This means that the company…

CHAMWE KAIRA  Letshego Holdings Namibia has told shareholders that profit after tax for the year ending 31 December 2024 is expected to be materially higher, by between 15% and 20%, than what was reported for the comparative period. “Therefore, earnings per share and headline earnings per share for the year ending 31 December 2024 is expected to be materially higher, by between 15% and 20%, than what was reported for the comparative period,” the company said. Last year, the company said in interim results for the year ended 30 June 2024 that operating profit increased by 18% to N$219 million…