Observer Money

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…

CHAMWE KAIRA The proposed Trans-Zambezi Railway Extension Grootfontein-Rundu-Katima Mulilo is very important for Tsodilo Resources Limited, which is developing the Xaudum Iron Project in Botswana close to the Namibian border. The company’s chairman and CEO, James Bruchs, said the railway line is very important for the rail shipment, once the Xaudum Iron Project is off the ground. In September, the Namibian Cabinet has approved the final feasibility study for the Trans-Zambezi Railway Extension Grootfontein-Rundu-Katima Mulilo. The extension of the Grootfontein-Katima Mulilo will connect Namibia, Zambia and Botswana, through Ngoma up to Kasane, and link up with Zimbabwe and Zambia, up…

FirstRand Namibia Limited has advised shareholders that the group's profit after tax for the period ended 31 December 2023 is expected to be 0% to 5% lower than the comparative period partly due to higher impairments, with pre-provision profit improving between 3% to 8% with strong underlying performance from operations. The group's reviewed financial results will be released on 29 February 2024, said Nelago Makemba company secretary. By comparison, FNB Namibia’s earnings for the six months ended 31 December 2022 increased by 38% to N$813 million, a performance the company said was a testament to the quality of its operating…

CHAMWE KAIRA Consumers can expect prices of alcohol products and cigarettes to go up in line with the Southern African Customs Union (SACU) excise duties when Minister of Finance, Ipumbu Shiimi tables the 2024 budget next week. This week, South African Minister of Finance, Enoch Godongwana said for alcohol products excise duties, above-inflation increases of between 6.7% and 7.2% for 2024/25 are proposed. This means a can of beer increased by 14 cents, a can of a cider and alcoholic fruit beverage went up by 14 cents, a bottle of wine will cost an extra 28 cents, a bottle of…

CHAMWE KAIRA The Financial Action Task Force (FATF) has not made a final decision on whether the country has successfully implemented sufficient reforms to avoid being grey-listed, Bryan Eiseb, director of the Financial Intelligence Centre (FIC), said this week. Media speculation this week said Namibia will be blacklisted by FATF. “The final has not been made yet,” said Eiseb. Early this week, Minister of Finance, Ipumbu Shiimi said Since December 2022, Namibia has been diligently working towards meeting international standards set forth by the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) and FATF. He said a comprehensive mutual evaluation…

Dundee Precious Metals (DPM) Inc. this week acknowledged receipt of notice from Osino Resources Corp that a foreign-based mining company has made a binding proposal to acquire all of the issued and outstanding common shares of Osino for a purchase price of Canadian Dollars (C$)1.90 per share payable in cash. Osino has further advised DPM that its board of directors has determined that the new proposal constitutes a superior proposal as defined in the arrangement agreement between DPM and Osino dated 17 December 2023. Pursuant to the terms of the Arrangement Agreement, DPM had previously agreed to acquire all of…

The tourism industry could potentially be one of the strongest performing sectors of the Namibian economy in 2024, according to Simonis Storm Securities. The firm said although business and conference tourism still lag behind 2019 levels, there is potential for significant growth, especially as certain hospitality establishments are poised to accommodate guests attending events such as The Africa Hospitality Investment Forum (AHIF) and the AviaDev Africa event. Organisers of the AviaDev Africa event have announced that 26 airlines have registered to participate so far, suggesting significant interest and the potential economic impact particularly in the tourism and hospitality industry. In…

MIGNON DU PREEZ Corporate transformation and strategy are more than simply buzzwords in the rapidly evolving corporate world; they are essential to long-term success. In addition to keeping up, those that understand the value of strategic planning and transformation also lead with an unwavering vision for greatness. Business transformation is a significant movement that fundamentally alters the way organisations operate, going beyond simple adjustment. In a world where flexibility is essential, companies that embrace change gain an advantage. It involves reevaluating procedures, making intelligent use of technology, and cultivating an innovative culture. Corporate leaders are aware that this is a…

Airlink is deeply saddened by the news of the unexpected passing of President Hage Geingob. “On behalf of everyone at Airlink, I extend our sincerest condolences to the late President Geingob’s family, his loved ones and Namibians everywhere, on the loss of a loyal servant of the Namibian people, a valiant fighter and committed campaigner for Namibia’s independence and self-determination, and a champion of inclusivity, democracy and constitutionally-led values,” said Rodger Foster, CEO and Managing Director of Airlink. Foster said Geingob said appreciated the airline’s sector’s role in unlocking the potential of tourism, trade, commerce and cultural ties. He saw…