FlyNamibia December 2023

A monthly wrap-up of News Worth Knowing

NAMIBIA’S HORTICULTURE EXPORTS HIT N$1.8 BILLION

Namibia’s horticulture exports have doubled in the last seven years having exported products worth N$1.77 billion for the 2022/23 financial year, a significant increase from N$674 million in 2016/17, official data reveals

According to the Namibian Agronomic Board (NAB), horticulture exports amounted to 86.2 tonnes for the 2022/23 financial year compared to 41.4 tonnes in 2016, representing a prospective growth of the sector.

“We are therefore calling for more investors to join the developing sector, so that we can also produce enough for local consumption, especially citrus fruits. Currently, what we produce is mainly for export, which includes table grapes, dates, blueberries, tomatoes, butternuts and green peppers,” NAB Chief Executive Officer Fidelis Mwazi said.

In addition, Mwazi said the majority of these products are high-value crops produced from the South of the country.

GOVT URGES STRICT COMPLIANCE TO FUEL LICENCE REGULATIONS

The Ministry of Mines and Energy has urged for the strict adherence to the regulations for wholesale and retail fuel licences amidst a rise in the illegal sale of these licences.

This comes as the government department has observed a spike in wholesale and retail fuel licence sales and marketing of fuel at non-officially gazetted prices from unlicensed locations, a development which the Ministry of Mines and Energy has warned is illegal.

“This regulatory oversight is governed by the Petroleum Products and Energy Act of 1990, the Petroleum Products and Energy Amendment Act of 2000, and the Petroleum Products Regulations of 2000,” Ministry of Mines and Energy Acting Executive Director Bryan Eiseb said.

Eiseb clarified that, “selling fuel (petrol and diesel) from an unlicensed outlet or without the requisite licence is strictly prohibited.”

NAMIBIA CATTLE SLAUGHTERS INCREASE 111.3% IN Q3

Namibia recorded a 111.3% increase in the number of cattle slaughtered at export abattoirs during the third quarter of 2023 to 34,398 compared to 16,281 cattle slaughtered in the prior period, official data shows.

Data from the Meat Board shows that, during the quarter, a total of 91,154 cattle were marketed, an increase of 52.03% from 59,957 cattle marketed during the same period in 2022.

The Meat Board Chief Executive Officer Paul Strydom said the growth in marketing was mainly driven by increased slaughtering activities at export-approved abattoirs as well as an improvement in live exports.

“The ratio between live exports and slaughtering of all cattle at A-, B- & C-class abattoirs improved by 37.7%. Meanwhile, live export market shares declined and averaged 56.7%. This is a drop of 2.9% in total marketing,” he said in the board’s sector report.

NAMIBIA, BOTSWANA TO SLASH ROAMING FEES IN 2024

Namibia and Botswana have agreed to slash roaming charges between the countries by April next year.

This comes as the communications Ministers of both countries met in August and decided to expedite the alignment of roaming fees throughout the SADC Region.

The initiative aims to streamline the establishment of the single digital market, aligning with the objectives of the CostBased Roaming Project.

Minister Segokgo also explained that before the initial implementation, the joint committee created between the Communications Regulatory Authority of Namibia (CRAN) and the Botswana Communications Authority (BOCRA) is tasked with data collection and analysis as well as drafting a report with the new proposed roaming rates which is expected to be completed by December 2023.

“The report will be shared with the operators and stakeholders at a workshop in January 2024 for further input. Operators to start preliminary negotiations based on the direction provided in the draft report through January 2024,” Segokgo explained.

According to Namibia’s ICT Minister Peya Mushelenga, the committee has agreed to adopt a benchmark approach similar to the one used in East Africa where roaming rates were used to determine what would constitute reasonable rates.

The committee has informed operators of the impending change and has started with the data collection exercise, operators have until November 2023 to submit their data.

BON MAINTAINS TIGHTROPE WITH SOUTH AFRICA TO CAP CAPITAL OUTFLOWS

The Bank of Namibia (BoN) has emphasised the importance of maintaining equilibrium with South African interest rates to curb capital outflow from individuals seeking higher returns in the neighbouring country.

The central bank Governor Johannes !Gawaxab emphasised the delicate balance the BoN is maintaining to prevent a capital exodus seeking more lucrative opportunities across the border.

“When we became independent, we decided to fix the Namibia dollar on par with the South African rand,” !Gawaxab said on Wednesday when he appeared in Parliament, underlining a crucial decision made in the country’s early years.

He said the fixed exchange rate, however, triggers what economists refer to as the “impossible trinity” or the “Holy Trinity”, a concept suggesting that fixing a currency to another country’s while allowing a free flow of capital between them undermines an independent monetary policy.

“If our interest rates in Namibia are 2% lower than South Africa,” !Gawaxab explained, “you get an arbitrage opportunity between the two countries. Many people are going to seek that 2% in South Africa, draining liquidity out of our system.”

This scenario, he pointed out, challenges the ability to independently set monetary policy and poses a risk of capital flight.

To counter this, the BoN has chosen to keep Namibian interest rates closely aligned with South African rates.

!Gawaxab said this approach reflects the BoN’s commitment to balancing economic stability with the well-being of Namibian citizens.

GEINGOB SCOOPS GREEN INFRASTRUCTURE INVESTMENT AWARD

President Hage Geingob has won the African Presidential “Green Infrastructure Investment Statesman” of the Year Award at The African NDC Presidential Investment Statesman of the Year Awards 2023.

The award will be presented at the COP28 Africa Investment Earthshot Leaders Summit and NDC Investment Awards in the UAE.

The NDC Investment Awards, organised by Africa Investor and sponsored by the Africa Green Infrastructure Investment Bank, were launched at the Commonwealth Heads of Government Meeting in Kigali in June 2022. The inaugural awards were presented in November 2022 at COP27.

The purpose of the NDC Investment Awards is to recognise achievements across the main NDC sectors and reward the governments, institutions, and individuals driving transactions to improve the investment readiness of Africa’s NDC projects, requiring US$3 trillion of investment by 2030.

Geingob has also been invited to speak at the COP28 Africa Investment Earthshot Leaders Summit.