Observer Money

The building activity observed in Windhoek and Swakopmund for January indicate a concerning start to the year, Simonis Storm Securities has said. Windhoek experienced a decrease in both approved building plans and completed projects compared to the previous month and year. Swakopmund also saw a decrease in approved building plans and a significant decline in completed projects, indicating a slowdown in construction activity. The firm said these trends suggest a concerning outlook for the construction sector, influenced by economic uncertainty where cyclical sectors like construction and materials typically face reduced demand. Additionally, the current high-interest rate environment further dampens activity.…

CHAMWE KAIRA At the end of January 2024, total revenue collections stood at N$72 billion, translating into a collection rate of 90.6% over the first 10 months of the financial year, budget documents released showed this week. This is significantly higher than the corresponding historical averages. As a result, total revenue and grants for the 2023/24 financial has been revised upward by 3.2% from N$78.6 billion to N$81.1 billion. “When compared to the previous year, total revenues increased by 26%. The increase reflects strong economic growth prospects and improved revenue administration. As a result, Corporate Income Tax and VAT have…

CHAMWE KAIRA Production activities have commenced with first ore feed into the Langer Heinrich Mine processing plant on 20 January 2024 following successful commissioning of the beneficiation circuit, the its majority owner, Paladin Energy said. Operation of the mine had been suspended in 2018 due to low uranium prices. Paladin received export permits from the Ministry of Mines and Energy in Namibia for 2024. Paladin said it had no lost time injuries or reportable incidents during the six months ending 31 December 2023. Over two million hours have been worked on the Langer Heinrich Mine Restart Project without any serious…

Deloitte Touche Namibia said this week that Minister of Finance, Ipumbu Shiimi’s tax policy stance was a combination of sentiments not to introduce new tax policy proposals which may stifle economic recovery and increasing the competitiveness, fairness and equity of the Namibian tax system. “For the first time in many years, over ten tax proposals were announced,” the firm commented. The individual income tax threshold will increase from the current N$50 000 to N$100 000. Deloitte noted that the proposal was initially made in the 2023 main budget and indications are now that it will be effective from 1 March…

NDADHI NDOROMA In the world of financial planning, the preservation of wealth stands as a vital component in establishing a durable financial legacy. With their strategic position, preservation funds emerge as prosperity guardians, guaranteeing future generations' financial well-being. This article will explore the critical function preservation funds play in preserving and transferring wealth. Preservation funds are essential to financial planning. These funds are fundamentally about protecting assets from unwarranted depletion and volatility. Preservation funds, in contrast to conventional investment vehicles, place a higher priority on capital preservation and provide protection from market and economic volatility. The flexibility of preservation funds…

This week, Alina Garises, communications manager at Dundee Precious Metals talks about the possible sale of the Tsumeb Smelter and impact it could have on the country’s economy. Observer Money (OM): What impact will the sale of Tsumeb Smelter have on the current employees; does this mean they will lose jobs? Alina Garises (AG): It is currently business as usual at the smelter. Decisions on future employment will belong to a new owner but we are extremely impressed by the quality and commitment of our Namibian workforce. While we cannot speak for a new owner, we believe that the reductions…

CHAMWE KAIRA Following the announcement Dundee Precious Metals Tsumeb has decided to undertake a strategic review of its Tsumeb operation, including a potential sale, the Windhoek Observer looked at the possible impact this move would have on the Namibian economy and the local impact on the town of Tsumeb. Dundee said given that the smelter is no longer expected to process any Chelopech concentrate from its subsidiary in Bulgaria, commencing in 2024 and as a result, it is no longer seen as strategic to DPM's asset portfolio. Statistics from the Chamber of Mines of Namibia showed that local procurement spend…