By Hilary Mare
THE year 2016 has been one of the most eventful years on the business landscape and produced many headlines and stories with both positive and negative bearing on the economic landscape. Here are some of the headlines that appeared in the Confidente business section in 2016.
60 million m3 in Whk aquifer
WITH the waters crisis in the Central Areas of Namibia deepening, an estimated total of 60Mm3 (sixty million cubic metres) of usable water is available in the Windhoek aquifer, Confidente has established.
The aquifer water that has a projected withdrawal simulation period of 5-6 years is primed as one of the few water crisis mitigation measures in Central Namibia which is currently grappling a deficit of 15.7 million cubic metres of water against demand of above 30 million cubic metres between now and the next rainy season.
Acer wants 15% market share
ACER, the global hardware, software and services company will look to increase its Namibian market share from the current four percent to 15 in the next 12 months, Acer Africa Country Manager, Paul Collins.
Speaking to Confidente this week, Collins highlighted that the company has been able to increase its market share to around 14 percent in Mauritius in just 10 months.
Air Namibia drops local fares
IN addition to the frequency and capacity increases, flagship airline Air Namibia has revised fares and ticket prices on domestic routes downwards, by an aggregate of 20 percent, a move that has been commended by the business community as noble and responsive to national prosperity chase.
This reduction in fares will ensure that all fares payable on domestic routes, including taxes, will be well below N$3 990.00 return.
Consumers to bear carbon tax costs
With carbon emission tax widely expected to affect volumes of vehicle sales going forward, the cost of this new tax will be passed on to consumers as they will pay more than they have done in the past, Simonis and Storm Securities has enlightened.This tax which came into effect on July 11 2016, is only applicable to certain vehicles most notably passenger vehicles, sport utility vehicles (SUVs) and double cab vehicles with Gross Vehicle Mass (GVM) not exceeding five tonnes.
DBN delivers N$3,3 billion in loans
Since its inception ten years ago, the Development Bank of Namibia has grown extensively in its lending, lending a total of N$3,379 billion up until the 2013 financial year, DBN communication manager Jerome Mutumba has said.
According to Mutumba, he further asserts that management of loan terms, particularly repayment of loans, is critical for both the Development Bank of Namibia and its clients.
Dundee in N$161m arsenic trioxide plant write-down
DUNDEE Precious Metals, net loss attributable to common shareholders from continuing operations for the third quarter and first nine months of 2016 was impacted by several items not reflective of the company’s underlying operating performance, including a write-down of N$161 million related to management’s decision to close Tsumeb’s arsenic trioxide plant by the end of 2016.
This was confirmed by the company in the Q3 results presentation in which they affirmed that other loss attributing factors were unrealised losses and gains attributable to hedging future copper and gold production and foreign denominated operating costs, and net gains or losses on Sabina special warrants.
FNB acquires Pointbreak and EBank
FNB Namibia has successfully concluded negotiations to acquire 100% of Pointbreak and EBank, subject to all necessary regulatory approvals. Pointbreak, a Namibian financial services group, provides investment management and wealth management services to the private, corporate and institutional markets, managing in excess of N$8 billion of third party capital.
Langer Heinrich sale delayed
URANIUM miner Paladin Energy has warned shareholders of a delay in the completion of the sale of a 24 percent interest in the Langer Heinrich mine, in Namibia, to a Chinese company.
The dual-listed firm is selling a 24 percent interest in Langer Heinrich to CNNC Overseas Uranium Holdings and up to 75 percent of its Manyingee project, in Australia, to MGT Resources for a combined N$2700 million.
Meatco fulfils 2016 Norwegian quota
The Meat Corporation of Namibia has filled the Norway export quota of 1 600 tonnes for the 2016 calendar year.
“The Norway market is a significant business relationship that Meatco will continue to nurture,” the company said.
Despite Meatco’s Okapuka Feedlot being closed for eight weeks, the company managed to fill the quota, which is good news for the company, producers and the Namibian industry as a whole.
New airlines to boost travel receipts
THE expected operations of additional airlines (Qatar Airlines, KLM, and Ethiopian Airlines) in Namibia are likely to attract more tourists from Central Africa, Middle & Far East, and Europe which would improve Namibia’s net travel receipts and therefore ease pressure on the current account, which is estimated to be at 13.0 of GDP.
Purvance Heuer, Director of Research and Securities at Simonis Storm Securities has highlighted that with this logic in mind, embracing an “open sky policy” would be necessary to optimally capitalise on export earnings from international travel services. This will also resonate with the Government’s ambition of positioning the country as a transport logistics hub for Southern Africa.
NSFAF quells accountability fears
FOLLOWING reports that the latest Namibia Students Financial Assistance Fund (NSFAF) audit report shows that the institution failed to account for more than N$2,7 billion between 2009 and 2010, the fund’s CEO, Hiliya Nghiwete has moved to clarify NSFAF’s position and squashed accountability fears.
Speaking to Confidente this week, Nghiwete explained that since the Fund was established, the period between 1997 and 2013 are financial years that the Fund was under the administration of the Ministry of Finance and under a structure that had no record management units which made it difficult to audit, hence the audit findings.
Omatala divides OTC
A storm brews in the Oshakati Town council as the decision on who should be awarded the towns prime 1,8 hectare old open market seem to have split the town’s decision-makers.
According to an inside source who refused to be named, some council members are no longer on talking terms following a burst out and decision impasse that pitted Indongo group of Frans Indongo against the BH group of Ben Hauwanga partnered with an Indian outfit.
Confidente. Lifting the Lid. Copyright © 2015