Observer Money

Niël Terblanché Young people aspiring to join the country’s growing oil and gas sector are set to benefit from a new partnership between the Petroleum Training and Education Fund (Petrofund) and SBM Offshore. The two organisations signed a Memorandum of Understanding (MoU) on Tuesday to launch a graduate trainee programme aimed at equipping local graduates with the skills and experience needed to thrive in the industry. Nillian Mulemi, the Petrofund’s chief executive officer, explained that the initiative seeks to create a pipeline that will increasingly feed qualified professionals who can meet the demands of the oil and gas industry, which…

CHAMWE KAIRA  The Ministry of Mines and Energy has confirmed that the sales agreement between the Namibian government and De Beers will end on 16 May 2026.  The ministry spokesperson, Ten Hasheela, told Observer Money that an internal review process has started. “The negotiating team is, however, in the process to be appointed,” spokesperson Ten Hasheela told Observer Money.  Asked whether Namibia will seek a larger stake in the next agreement beyond the current 15%, Hasheela said the ministry cannot speculate on the outcome.  According to her, the team will review the current agreement and propose key issues for negotiation.…

CHAMWE KAIRA   Botswana is currently considering proposals for a self-funding mega-project for the construction and development of a rail corridor linking Namibia and Botswana’s western copper-belt region through Ghantsi, minister of finance Ndaba Nkosinathi Gaolathe has disclosed.  He said when he presented the 2025 budget that Botswana’s existing rail infrastructure is neither adequate nor up to standard; even so, it is not fully utilised or optimised.  “The administration is considering options for a rail operational model best suited for our circumstances. All options being considered will require changes to the current legislation on the role of Botswana Railways,” he said. …

CHAMWE KAIRA Production in Namibia rose by 3% to 600,000 carats, driven by higher-grade mining and improved recoveries at Namdeb.  In Botswana, production decreased by 31% to 4.2 million carats as a result of planned actions to lower production at Jwaneng. According to De Beers' production report for the fourth quarter ended 31 December 2024, deliberate lower production at Debmarine Namibia partially offset this. In South Africa, production increased by 27% to 600 000 carats, due to Venetia underground and a slight improvement in grades of processed ore. Production in Canada decreased by 43% to 500 000 carats as a…

CHAMWE KAIRA  Paladin Energy, which owns the Langer Heinrich mine in the Erongo Region, told investors it has secured 11 offtake agreements with tier-one industry counterparties. During an investor conference call, the company said 88% of the mine’s total production will be exposed to market-related prices.  It also confirmed that the mine has already contracted for 50% of its production. “Strong demand for nuclear energy is driven by global decarbonisation and energy security,” it said.  China’s CNNC, a major shareholder in Paladin, is one of the world’s largest uranium consumers.  “Chinese utilities are expected to become the largest consumers of…

CHAMWE KAIRA  First Capital Namibia says the demand for housing in Bukalo, Zambezi Region, is rising as more people seek residential developments.  A report by the firm said that 1 700 individuals are currently on the council’s waiting list for affordable housing, while 600 others are waiting for land to build their own homes. “This substantial demand for both houses and land emphasises the urgent need for expanded housing and land allocation efforts to meet the community's needs and accommodate its growth,” the report said. Bukalo’s expansion has resulted in the creation of six extensions. While most of these extensions…

CHAMWE KAIRA  Namibia’s inflation trends are aligning with global patterns, where price pressures are easing in major economies, according to Simonis Storm Securities. In the United States, inflation stood at 2.6%, while the Euro Area recorded 2.3%, both benefiting from stable energy prices and slower economic activity. In South Africa, inflation moderated to 2.8% yearoveryear, driven by lower transport costs and a slowdown in food price increases. Simonis noted that Namibia’s inflationary dynamics differ from its regional peers, particularly due to structural challenges in housing and utilities, which keep core inflation elevated. The report noted that the reintroduction of US…

CHAMWE KAIRA  Namibia’s trade prospects in 2025 will be shaped by regional economic shifts, global trade policy changes, and infrastructure developments.  While expanded logistics capacity and trade agreements create opportunities, external risks, including South Africa’s economic pressures, US tariff policies, and exchange rate volatility, require careful management, Simonis Storm Securities has noted in a report. As Namibia’s largest trade partner, South Africa’s economic health has direct implications for Namibia’s trade dynamics. A South African slowdown, exacerbated by global trade disruptions, inflationary pressures, and currency volatility, could weaken demand for Namibian exports. “Sectors such as mining, agriculture, and manufacturing, which are…

CHAMWE KAIRA  TransNamib is in the process of standardising its fleet with General Electric/Wabtec locomotives. The company's spokesperson, Abigail Raubenheimer, said standardisation will ensure operational efficiency, reduced maintenance costs, improved reliability, and faster service, among other benefits. Furthermore, she added that sourcing directly from the manufacturer will eliminate the need for a third-party agent and will facilitate the building of a direct relationship with the manufacturer. The TransNamib Board approved the standardisation initiative in 2022, and subsequent approvals were granted by lending institutions and the Ministry of Finance and Public Enterprises. Raubenheimer said the Central Procurement Board of Namibia approved…

The diamond market was slow in January, with mixed reports about holiday sales. The US holiday season met the industry’s low expectations. Diamond prices declined, with some improvement in some carats. Fancy-shape diamonds of 3 carats and larger are doing better.   De Beers and the Botswana government reached a landmark agreement that includes extending joint venture Debswana’s mining licenses beyond 2029. The two parties will be working together to promote natural diamonds. The rough market has been slow, with De Beers maintaining prices and selling fewer diamonds at this year’s first sight. US Customs and Border Protection (CBP) is demanding…