Simonis Storm

24 Oct

Economy will offer construction opportunities

ObserverObserver MoneyBank of Namibia, Simonis Storm

CHAMWE KAIRA Economic research firm Simonis Storm has said while it remains cautious about the overall recovery of the construction sector, it is excited about the opportunities ahead. The recent 25-basis point rate cut by the Bank of Namibia is a welcome step toward creating a more favorable environment for property financing, particularly in the residential sector, the firm said. “Although the current challenges in both corporate and household mortgage lending suggest that deeper structural issues persist, we expect that further rate cuts are on the horizon, offering additional relief and support for the sector,” the firm said. Simonis said…

Government debt reaches N$123 billion

ObserverObserver MoneyFixed-rate bonds, Simonis Storm, Treasury Bill

CHAMWE KAIRA Namibia’s total domestic government debt reached N$123.51 billion by the end of September, reflecting an increase of N$2.04 billion. Fixed-rate bonds (GCs) contributed significantly to this growth, accounting for 63% of the increase through the issuance of N$1.27 billion in GCs. In contrast, inflation-linked bonds contributed a modest 4%, totaling N$80 million. The Namibian government bond yields have experienced significant compressions, particularly within the 10 to 20-year tenors since the start of this year, according to a report by Simonis Storm research and wealth management company. The yield on the GC40 decreased by 139 basis points, while the…