Observer Money – Page 64

19 Dec

Money supply growth is up by 7.9 percent

info_e12wt4csObserver Money

Martin Endjala The latest Bank of Namibia Quarterly Bulletin for December 2023 reported that annual growth in broad money supply has experienced a moderate increase of 7.9 percent. This growth has been primarily driven by a significant surge in Net Foreign Assets of the depository corporations. However, during the same period, Private Sector Credit Extension saw a slowdown of 1.6 percent in the third quarter of 2023. This rise in annual growth during the third quarter of 2023 was fueled by an increase in Net Foreign Assets of the depository corporations, attributed to diamond proceeds and revaluation gains. On the…

18 Dec

Acquisition of 350 tractors will aid more communal farmers

info_e12wt4csObserver MoneyAcquisition of 350 tractors will aid more communal farmers

Niël Terblanché To support communal farmers and enhance food production in Namibia, the Ministry of Agriculture, Water, and Land Reform has acquired a total of 350 brand-new tractors with varying agricultural applications. These tractors will be distributed across the country to benefit communal farmers during the upcoming ploughing season. The transaction is a substantial investment in the agricultural sector and the future food security of the people. According to Ndiyakupi Nghituwamata, the Executive Director of the agriculture ministry, 298 tractors have already been delivered to various regions of the country to improve agricultural practices and productivity. She added that the…

18 Dec

Significant improvement in vehicle sales during November

info_e12wt4csObserver MoneySignificant improvement in vehicle sales during November

Martin Endjala In November 2023, the automotive market experienced a notable upswing, with vehicle sales surging by 12.4 percent. This positive shift comes after four consecutive months of decline. In contrast to the previous month's downturn of -12.5 percent, the sales recorded a substantial increase of 27 percent. Economist Halleluya Ndimulunde reported that the total number of units sold in November reached 1,171. She emphasized the varying performances in different segments of the market. T The heavy commercial vehicles (HCV) sector faced a significant downturn, witnessing a steep 37.5 percent decrease in units sold. Conversely, the light commercial vehicles (LCV)…

15 Dec

Electricity boosted by good Ruacana flow

info_e12wt4csObserver Money

CHAMWE KAIRA The electricity and water sector is expected to maintain strong growth in 2023, before registering low growth in 2024, according to Bank of Namibia statistics. The electricity and water sector is estimated to grow by 9.5 percent and 4.2 percent in 2023 and 2024, respectively, a slowdown from 10.3 percent in 2022. The strong growth in 2023 is mainly attributed to the electricity sub-sector where local generation of electricity improved on the back of an increased water level at the Ruacana hydro-power plant during the latest rain season. The latest growth estimate for 2023 was revised upwards by…

15 Dec

Low volumes delay Namcor/TransNamib deal

info_e12wt4csObserver Money

CHAMWE KAIRA The Memorandum of Understanding signed between Namcor and TransNamib on September 6, 2021 for the transportation of lubricants has not commenced yet because of the lower volumes. “Regarding the quantity of petroleum and lubricant products transported by Namcor since the agreement was signed, we have not yet commenced the transportation of lubricants with TransNamib. This is due to lower volumes, and our strong client relationships allow us to deliver lubricants directly to our customers,” said Paulo Coelho, Manager of Marketing, Communication and Public Relations at Namcor. However, Coelho, said in terms of ULP and Diesel, for the year…

15 Dec

Paratus plans to invest N$137m in infrastructure

info_e12wt4csObserver Money

Chamwe Kaira Communications company, Paratus Namibia plans to invest N$137.8 million investment into infrastructure in 2024, the company said in the Integrated Annual Report 2023 released recently. Paratus said this investment will mainly be earmarked for capital expenditure projects. These projects include the completion of the fiber route running through Botswana to connect South Africa with the Equiano Submarine Cable, long-term evolution (LTE) expansion to the major towns of Namibia, which provides inter-alia Paratus with the ability to compete in the lower market segment. The capex will be funded with own cash resources only, the company said. Paratus Namibia Holdings…

15 Dec

ANIREP plans to secure 30 percent market share

info_e12wt4csObserver Money

CHAMWE KAIRA Alpha Namibia Industries Renewable Power Limited (ANIREP) has vision to secure a 30 percent market share in the renewable energy sector. During the first half, the IPP Sale of Electricity through ANIREP Solar (Pty) Ltd consistently generated a steady income of N$17.2 million, aligning with the preceding period, attributable to Power Purchase Agreements (PPAs). The PPA with NamPower remains effective until 2040, while the PPA with CENORED was extended in December 2022 for an additional year, now spanning until 2042. This extension accommodates a 120 percent capacity increase and volumes, expanding the current capacity from 5MW to 11MW,…

15 Dec

New car sales reach 11 944

info_e12wt4csObserver Money

The total number new cars sold from January to November total 11,944, marking it the most robust performance since the noteworthy figure of 12 224 recorded back in 2017. This success is particularly striking given the prevailing economic challenges, including high interest rates, and rising inflation, Simonis Storm Securities said this week. In December, the Bank of Namibia maintained the interest rate at 7.75 percent, providing a brief respite for consumers amidst ongoing economic pressures. “However, projections suggest that the high-interest rate environment will likely continue to impact household debt management at least into the latter half of the next…

15 Dec

Trustco’s portfolio valuations decline

info_e12wt4csObserver Money

CHAMWE KAIRA Trustco has reported in a trading statement for the year 12 months ended August 2023 that a notable factor contributing to the decline in portfolio valuations was the collective surge in discount rates, totalling 11.68 percent (approximately N$650 million, or 66 cents per share) across Trustco's portfolios. Trustco, a diversified investment entity said the prevailing global trajectory of escalating central bank rates appeared to have reached its apex as of the current reporting period. “Forecasts indicate a potential moderation in these rates, hinting at an anticipated reduction in discount rates over the coming years. This expected adjustment may…

15 Dec

Fishing to slow down in 2024

info_e12wt4csObserver Money

The central bank expects growth in agriculture, forestry and fishing is expected to turn negative during 2023 and 2024, due to inconsistent rainfall patterns and reduced fishing quotas. The expected onset of El Niño late 2023 and/or early 2024 poses a downside risk to crop production in Southern Africa during 2023-2024 season, the central bank states. The Bank of Namibia said the diamond mining sector is expected to register a moderate growth rate during 2023, but a slowdown when compared to 2022, as production levels get closer to the carrying capacity. The uranium mining sector is expected to return to…