Observer Money

The stock of international reserves increased by 3,7% month-month to N$56,3 billion as at end of April. The increase stemmed from higher SACU receipts, as well as an increase in customer foreign currency inflows. The foreign reserves translated into four months of import cover, continuing to remain above the international benchmark of three months and adequate to support the Namibia dollar and the South African rand currency peg. Notably, the import cover excluding imports of oil exploration and appraisal activities stood at 4,7 months at the end of April, relative to 4,4 months recorded at the end of March. Growth…

CHAMWE KAIRA B2Gold said in its ‘Responsible Mining Report 2023’ that the Otjikoto Mine has consistently focused on improving local procurement levels since initial construction. The company said in 2023, 61% of the procurement came from in-country purchases, with approximately 3,7% out of onshore purchases spent directly on small- and medium-sized enterprises within the mine’s area of influence. B2Gold Namibia has over 1400 suppliers enrolled in its database, of which approximately 95% are Namibian registered and 4% are South African registered. In 2023, the total expenditure at the national level was US$105 million. Otjikoto said it also encourages its suppliers…

The SADC Business Council Tourism Alliance has expressed deep concern over Namibia's proposed restrictive visa regime, which could severely hamper the country's tourism industry and economic growth. This policy shift appears to contradict Namibia Airports Company’s recently launched air access strategy, “Air Connect Namibia”, aimed at increasing international flights and connectivity. The implementation of stricter visa requirements could have a detrimental impact on various sectors of Namibia's economy, including tourism, hospitality, transportation, and retail, all of which rely heavily on international visitors. Evidence from across Africa, including success stories from Rwanda and Zambia, demonstrates that visa liberalisation significantly boosts tourism,…

Deep Yellow Limited has selected Ausenco Services Pty Ltd as the preferred contractor to deliver the detailed engineering and the engineering, procurement and construction management (EPCM) services for the company’s flagship Tumas Project located in the Erongo Region. Ausenco is a market leading engineering and consulting firm and brings extensive knowledge of the Tumas Project, through the work they completed on the February 2023 definitive feasibility study together with the December 2023 re-costing. The scope of work to be completed includes finalising detailed engineering with an EPCM contract opportunity for project execution Deep Yellow said tendered price is commensurate with…

Businesses operating across borders are facing slowing growth and an increasing battle for long-term sustainability, according to a new report from KPMG International. The findings in KPMG’s Top risks forecast: Bottom lines for business in 2024 and beyond shine a light on the multifaceted, complex challenges facing companies looking to grow internationally at a time of increasing divergence on regulation, conflict, technological advancement and political uncertainty. The report’s analysis identified the three most critical risks for businesses right now, known as ‘bottom lines’, likely to impact operations this year and beyond. Global trade restrictions have been on the rise, with…

South African President Cyril Ramaphosa has signed into law the Revenue Laws Amendment Bill of 2023, which establishes a ‘two-pot’ system that gives members of retirement funds access to retirement savings without having to resign or cash out entire pension funds. The amendment law introduces a ‘two-pot’ retirement system to address the concerns related to lack of preservation before retirement and lack of access to retirement funds by households in financial distress. According to a statement by the Presidency, this retirement system comprises a savings and retirement component for contributions made after 1 September 2024, while historical retirement benefits will…

Mobile Telecommunications Limited (MTC)’s revenue increased by 5,91% to N$1,57 billion for the period under review, due to increased demand for high-speed data connectivity and value-added managed services which contributed towards the group, this was contained in interim results for the six months ended 31 March. Earnings before Interest, Tax, Depreciation, and amortisation (EBITDA) decreased by 4,9% to N$700 million from N$734 million in the same period last year, due to increases in direct and operating costs. Following a Supreme Court ruling on section 23 of the Communications Amendment Act on 13 March 2024, MTC was found liable for levies…