Observer Money

The Bank of Namibia has received one application from a local company partnering with other investors seeking authorisation to establish a banking institution, Deputy Governor, Leonie Dunn disclosed this week. Dunn said the application is being assessed to determine whether the applicants meet the requirements for authorisation to conduct a banking business. Observer Money established that the applicants include an investor from Ghana in West Africa. The current authorised banking institutions are Bank Windhoek, First National Bank Namibia, Standard Bank Namibia, Nedbank Namibia, Bank BIC Namibia, Letshego Bank Namibia and Banco Atlántico. The new Banking Institutions Act took effect on…

Martin Endjala Economist Josef Sheehama says that the recently announced hike in fuel prices by the Ministry of Mines and Energy will negatively impact the already struggling consumers. According to Sheehama, this will trigger inflation and the hike in oil prices will further stifle the growth of the economy through the supply and demand for goods. He added that the increase in oil prices will depress the supply of other goods due to the increase in the cost of production. “Oil price increases are generally thought to increase inflation and reduce economic growth. A rise in prices impacts the current…

Martin Endjala The Bank of Namibia (BoN) has announced a dividend of N$ 511.5 million to the State Revenue Fund for the 2023 financial year, an improvement compared to the N$413.7 million recorded in the 2022 financial year. The Bank’s Governor Johannes !Gawaxab, stated that despite a challenging global economic environment, the financial sector’s performance remained sound during 2023. With the stock of international reserves rising by 11.9 percent to N$53.2 billion. He made this announcement yesterday during the launch of its 2023 annual report in Windhoek. Stating that from N$ 47.6 billion recorded at the end of 2022 to…

CHAMWE KAIRA The country will have 990 MW of electricity added to the national grid if various renewable energy projects proposed before the Electricity Control Board for licensing come to fruition. Southern Africa Renewable Energy (Pty) Ltd has applied for four solar licences with a total of 600 MW at Aus, Mariental, Keetmanshoop and Naruchas. PMP Energy (Pty) Ltd has also applied for a solar generation at Ondangwa with a capacity of 12 MW while Omukwa Renewable Energy (Pty) Ltd has applied for a solar generation plant with a capacity 12 MW at Katima Mulilo. More projects include Sino Energy…

CHAMWE KAIRA Namibia will see the introduction of the first hydrogen powered train next year, a first for Africa. The National Planning Commission announced this week that after extensive negotiations, the contract has been finalized on the HyRail project. The project is spearheaded by TransNamib, Hyphen Technical and CMB Tech. and includes the University of Namibia (UNAM) as an academic partner. The project is expected to demonstrate the ‘use case’ of hydrogen in the rail transportation sector, in the form of dual fuel converted train. “The locomotive conversion is anticipated to commence in the latter part of the year, and…

CHAMWE KAIRA Alpha Namibia Industries Renewable Power Limited (ANIREP) is set to launch a N$5 billion green bond on the Namibian Stock Exchange (NSX) on the back of assessment by S&P Global ratings. S&P Global Ratings has assessed ANIREP's green bond framework as dark green, the highest sustainability rating. ANIREP is a renewable energy with a generation mix that is currently 100% solar and most of the proceeds under the framework will be used to finance renewable energy. ANIREP is in the process of registering a N$5 billion domestic medium term note with the NSX. The debut issue is expected…

Standard Bank Namibia (SBN) Holdings Limited says Namibia’s economic performance is expected to continue on a positive trajectory with stable growth expected over the remainder of the forecast period to 2027. SBN said growth will be supported by a broader and more sustained recovery across most sectors of the economy, while structural reforms implemented by the sovereign will continue to aid growth over the mid-term. “Looking ahead, our strategic focus areas of transforming client experience, executing with excellence, and driving sustainable growth and value for all stakeholders will guide our actions. We recognize the vital role that the bank plays…

CHAMWE KAIRA The Botswana government and local communities living in wildlife areas this week protested to the British Parliament about the potential of the UK passing a bill that prohibits trophy imports from Botswana and other Southern African states known as Kavango–Zambezi Transfrontier Conservation Area (KAZA) countries from entering the United Kingdom. The UK is party to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) which regulates international trade in over 35 000 species of wild animals and plants, their products (such as animal skins) and derivatives (such as food or medicine). The Hunting…

CHAMWE KAIRA Non-banking financial institutions regulated by the Namibia Financial Institutions Supervisory Authority (Namfisa) disbursed N$14.6 million to consumers in 2023 following successful appeals on various complaints lodged with Namfisa. This revelation emerged during a recent consumer education awareness meeting convened in the //Karas Region. Namfisa disclosed that grievances primarily stemmed from consumers signing blank or incomplete documents and encountering difficulty in understanding specific financial benefits or products due to inadequate or absent explanations during the sales process. Additional complaints encompassed non-payment of premiums and installments due to financial hardships and over-indebtedness, as well as the arduous cancellation procedures implemented…