Theo Klein – Windhoek Observer

14 Jun

Sharp hike in repo rate anticipated

ObserverMainSharp hike in repo rate anticipated, Theo Klein

Martin Endjala Experts in the economic sphere are anticipating the Bank of Namibia to hike the repo rate by 25 basis points or more for the fourth time this year because of the prevailing inflation rate. All eyes will be glued on the BoN headquarters in anticipation of when the Monetary Policy Committee (MPC) pronounce itself on the fate of the repo rate in Namibia later today. Simonis Storm Economist Theo Klein is of the view that a 25-basis points hike looks very likely and would be the responsible thing to do given the current financial position of the average…

20 Jan

Vehicle affordability to remain on an upward trajectory for 2023

ObserverNational NewsTheo Klein, Vehicle affordability to remain on an upward trajectory for 2023

Tujoromajo Kasuto Simonis Storm Securities has hinted that vehicle sales are likely to stay on an upward trajectory as commodity prices continue to fall until mid-2023, and the supply of new vehicles from foreign factories should increase beginning in mid-2023, along with ongoing spending momentum from last year. According to Theo Klein, the firm’s Economist, commercial cars in particular should experience increased sales due to favourable mining and transportation sector development estimates for 2023, as well as the installation of green hydrogen projects along the coast. He predicted that shipping costs would continue to fall as the Rand strengthened as…

15 Dec

Vehicle sales record positive growth in November

ObserverNational NewsSimonis Storm Securities, Theo Klein, Vehicle sales record positive growth in November

Tujoromajo Kasuto Vehicle sales broke a two consecutive months’ decline in November rising by 38.4 percent in. On a monthly basis, vehicle sales increased by 4.9 percent in November 2022 compared to -2.2% this October. A total of 1,045 units were sold in November, higher than the long-run average of 840 units. According to Simonis Storm Securities, medium and light commercial vehicles recorded the largest annual increases in units sold, and the extra-heavy commercial vehicle was the only category which recorded a decline in units sold. Economist Theo Klein notes that the firm is cautiously positive on vehicle sales in…

09 Sep

Local tourism declining because of inflation

ObserverNational NewsHospitality Association of Namibia (HAN), Local tourism declining because of inflation, Theo Klein

Tujoromajo Kasuto Simonis Storm Securities has revealed that local tourism might decline in the near future, as local travellers battle with expensive food, fuel and accommodation prices. Theo Klein, an economist with the firm, states that the hotels, cafés and restaurants category has recorded high single digit inflation rates in recent months, averaging nine percent year on year. ‘’Disaggregating this main category, we see that accommodation services have only recorded double digit inflation rates and average 15.1% YTD. This is evident that local hospitality establishments have little capacity in absorbing a rise in input costs (e.g electricity tariffs, food, fuel,…

13 Jul

People advised to be vigilant when buying second hand vehicles

ObserverNational NewsPeople advised to be vigilant when buying second hand vehicles, Theo Klein

Tujoromajo Kasuto People have been advised to be cautious when purchasing older models of vehicles, as they may have technical problems.This comes in the wake of the Ministry of Industrialisation, Trade and SME Development allowing the import of vehicles older than 12 years, increasing the year limit from the current eight years. Theo Klein, economist at Simonis Storm Securities, praised the ministry for this initiative, which aims to address the vehicle shortage in the secondary market, which the firm has discussed in previous reports. He, however, emphasized the buyers may experience increased likelihood of mechanical issues with older models of…

01 Jul

Rising interest rates putting squeeze on economy

ObserverNational NewsBank of Namibia (BoN), Rising interest rates putting squeeze on economy, Simonis Storm economist, Theo Klein

Tujoromajo Kasuto Analysts expect interest rates going up by another 100 basis points or one percent before the end of the year sending home and vehicle repayments through the roof. The Bank of Namibia (BoN) is expected to raise it repo rate that will hike the interest rates from 9.5% and 10.5% to 10.5% and 11.5% respectively by the fourth quarter of 2022. According to Simonis Storm economist, Theo Klein this would place indebted households and corporates in a worse financial position given that mortgages constitute the largest component total household and corporate debt. He added that also corporates battling…

23 Jun

Gloomy road ahead for construction

ObserverNational NewsGloomy road ahead for construction, Theo Klein

Tujoromajo Kasuto Analysts have predicted pipeline construction activity will be less promising in 2022, as rising interest rates and the possibility of another 100bps repo rate hike before the end of the year that will put a strain on household budgets that are already stretched due to high food and fuel prices. According to Simonis Storm Securities, Economist Theo Klein this will have a major negative impact on the middle income residential market. ‘’This could negatively impact buyer demand, especially in the low to middle income residential market. We do also expect demand for office/commercial property to be subdued owing…

Double digit growth in livestock exports<br>…but prices of beef and mutton drop in May

23 Jun

Double digit growth in livestock exports
…but prices of beef and mutton drop in May

ObserverNational News3.4 percent year, Double digit growth in livestock exports, prices of beef and mutton drop in May, Theo Klein

Staff Writer Cattle slaughtered at local abattoirs increased by 3.4 percent year on year in May 2022, while sheep slaughtered increased by 12 percent, goats increased by 90.7 percent, and pig slaughtered increased by 12.8 percent According to a report by Simonis Storm economist Theo Klein in May 2022, live cattle exports increased by 35.9 percent year on year, sheep by 47.5, and goats by 9.8 percent and South Africa was the only country to which live cattle was exported to. ‘’During May 2022, South Africa will receive 99 percent of all live sheep and live goat exports. In terms…