A monthly wrap-up of News Worth Knowing

Namibia records positive, semi-annual rough diamond production

The diamond industry was affected by slow discoveries, sales and exports during the Covid-19 pandemic period. In 2020, Namibia produced a total of 1,549,732 carats and 1,762, 905 carats in 2021.

The historical production of diamonds was to the value of N$16.7 billion recorded in 2018, the total value derived from rough diamonds slumped in 2019 to N$15 billion and N$13 billion in 2020. The preceding year of 2021 recorded a slight recovery of N$13 billion.

The current year, 2022, is displaying positive signs of recovery for the sector as the country’s GDP growth and employment creation are reliant on this sector.

To summarise the optimism for the current year, the preliminary value recovered from rough diamonds for the period of January to June exceeds to a peak of N$8.9 billion (similar to the value recorded during the same period in 2018).

This signifies a positive recovery for diamond production and sales to boost optimism for growth and economic recovery. Challenged with the global volatility towards inflation and escalating interest rates which triggers slower production output globally, the country is faced with uncertainties regarding various industries and need to monitor the performance of various economic and industrial sectors to identify steady growth and recovery.

Rough diamond sales are reliant on international polished diamonds market sales in countries such as Belgium, USA, China, Europe, Canada, etc. In 2021, majority of Namibia’s rough diamonds were exported to Botswana, were the aggregated stock sold from the De Beers Global Sales office that facilitates the sale for stock mined in Namibia, South Africa and Botswana primarily. The non-aggregated stock is sold via NDTC and NAMDIA.

NWR cuts lodge prices for Namleisure Card holders

Namibia Wildlife Resorts (NWR) has slashed prices at its resorts and lodges to boost domestic tourism.

Nelson Ashipala, NWR spokesperson, said prices have been reduced to as low as N$660 per person at any resorts, while at some of its top-notch establishments the fee is at N$1,440.

"This is one of the organisation's ways of saying thank you to the nation for carrying tourism through the Covid-19 pandemic. With the release of the latest SADC and domestic rates, citizens can now travel to some of Namibia's best resorts at a fee as low as N$660per person upon presentation of a Namleisure discount card, including Dinner and Breakfast. For the high-end resorts under the Eco category, such as Sossus Dune Lodge and Dolomite, the fees start from N$1,440 per person with the Namleisure card. Rates are valid for new bookings from 01 November 2022 to 31 October 2023," he said.

Muremi encouraged the general public to obtain an NWR Namleisure Card in order to qualify for various discounts "at all of our resorts".

"Resort prices have often forced Namibians not to fully experience the flora and fauna that is in Namibia. Being the only company allowed to operate in parks, ensuring affordable prices is not only an obligation, but a must, as it gives a great chance to view wildlife in their natural habitat and create great experiences," he added.

Resort prices have often forced Namibians not to fully experience the flora and fauna that is in Namibia. Being the only company allowed to operate in parks, ensuring affordable prices is not only an obligation, but a must, as it gives a great chance to view wildlife in their natural habitat and create great experiences

The NWR spokesperson also justified the reduction to cater for escalating costs of travelling and general wellbeing. He added that, with the new prices, NWR can confidently claim to have the country's lowest prices.

Namibia’s investment sector creates 7k jobs

The Namibian investment management sector created 7,777 jobs in the 12 months to March 31, 2022, latest figures from the Namibia Financial Institutions Supervisory Authority (NAMFISA) have revealed.

NAMFISA Chief Executive Officer Kenneth Matomola said the period under review saw an uptick in jobs created through investments in unlisted companies, which is in line with the national policy objectives to create sustainable job opportunities for Namibians.

He noted that 5,899 jobs were on a permanent basis while 1,878 were temporary.

This comes as pension funds and collective investment schemes accounted for the biggest portion of assets under management with 51.4% and 27.1% respectively.

Matomola said total assets under management in respect of collective investment schemes increased by 4.9% to N$79.8 billion as at 31 December 2021.

Nghikembua , Mnyupe ranked among top African economic leaders

Communications Regulatory Authority of Namibia's (CRAN) Chief Executive Officer, Emilia Nghikembua and Presidential Economic Advisor, James Mnyupe have been ranked among the top 100 African economic leaders in Choiseul’s 2022 ranking.

The Choiseul 100 Africa is an independent annual study that identifies and ranks the most promising young African leaders 40-years-old and under expected to play a major role in the continent’s economic development in the near future.

The study takes specific criteria into account to rank the selected profiles. Image and reputation, power and function, influence and networks, potential, and leadership are among the considered skills.

The total score obtained in the different categories determines the position of each laureate in the final ranking. Profiles with less than 10% in any of the categories are eliminated.

World Bank forecast Namibia’s growth at 2.8%, public debt at 78.9% of GDP

The World Bank has slashed Namibia’s economic growth for this year and painted a gloomy picture about the country’s public debt.

In its Africa Pulse Report for October 2022, the World Bank said Namibia’s economy is now expected to grow by 2.8%, down from 2.9% predicted in April this year, while the country’s public debt is projected to nudge up to 78.9% of GDP in 2022.

“The Namibian economy struggled to pick up speed, up from 2.7% (2021) to 2.8% (2022). The growth is on account of good performance of the mining sector, particularly, rising output of diamonds, copper, and uranium. However, contractionary monetary policy to maintain parity with the South African rand and to fight rising inflation may drag down growth. The twin deficits recorded last year will persist in 2022,” World Bank’s noted.

This comes as the government’s total debt as a percentage of GDP stood at 68.2%, increasing by 0.4 percentage point at the end of June 2022 according to the Bank of Namibia data released last week.

Mineral and metal resource-rich countries, a grouping in which Namibia is classified under, are forecast to grow by 4.5%, down from 5.1% in 2021 according to the World Bank.

“The growth projected in April is revised down by 0.2 percentage point as the external receipts from high metal prices proved insufficient to make up for rising import bills.”

Growth of the regional economy is expected to slow to 3.3%, from 4.1% in 2021, a downward revision of 0.3 percentage point from the April 2022 Africa’s Pulse forecast.