A monthly wrap-up of News Worth Knowing

NAMIBIA TO BECOME HOTSPOT FOR MILLIONAIRES AND WEALTHY SOUTH AFRICANS

Namibia’s number of millionaires is expected to rise from 2,150 individuals to over 10,000 by 2040, according to a report by New World Wealth.

Namibia, according to the report, will become an option for South African millionaires looking to emigrate, driven by the current challenging economic environment in the country, worsened by load-shedding.

According to New World Wealth, Namibia's abundant natural resources, low population density, good energy and transport infrastructure, and, most importantly, good safety and security compared to its neighbours position it to be the next millionaire hotspot.

The nation also has low taxes, with a relatively modest 37% income tax and no estate duty or capital gains tax – except for the sale of mining and petroleum licences/rights and the transfer of any share/interest in a company owning a mineral/petroleum licence, were listed as part of the policies that make the country an attractive option.

“It also has a well-developed banking system, with the Namibia Dollar pegged against the Rand, which means it has a relatively stable economy as the Rand is Africa’s most heavily traded currency. The peg also creates a convenience factor for expats that move frequently between the two countries,” New World Wealth said.

According to the World Bank, one of Namibia’s greatest advantages is its low population density, with only three people per square kilometre.

Countries with a low population density tend to be far richer on a wealth per capita basis, which New World Wealth argues is a better indicator of the actual financial health of an economy.

Namibia is only behind South Africa and Mauritius on a wealth per capita basis.

“In addition, sparse populations often allow wildlife to thrive, improving the quality of life for locals and increasing eco-tourism opportunities. Interestingly, a fifth of Namibia is protected by national parks, making it one of the most ecologically friendly countries in the world.”

Namibia's affluent residential suburbs, such as Ludwigsdorf and Klein Windhoek (both in Windhoek), Vogelstrand (in Swakopmund), and Langstrand (near Walvis Bay), were listed as appealing to wealthy buyers.

New World Wealth added that there are a host of luxury lifestyle estates in the nations, such as the Finkenstein Estate, Am Weinberg Estate and the upcoming Presidents Links Estate.

The New World Wealth study tracks private wealth and investment migration trends worldwide.

NAMIBIA TO RAKE IN N$105.9 BILLION PER ANNUM FROM OIL AND GAS

Namibia is on the cusp of an economic transformation as its budding oil industry is projected to generate N$105.9 billion (U$5.6 billion) per annum in state revenue, an official has revealed.

The revelations follow the discovery of substantial oil reserves in the Orange Basin, offshore Namibia, near Lüderitz, by global energy giants Qatar Energy, Shell, and TotalEnergies.

National Petroleum Corporation of Namibia (NAMCOR) Executive for Upstream Development and Production Mtundeni Ndafyaalako who revealed the revenue projections, said there is potential for the country's economic diversification through the exploration and exploitation of its newfound oil resources.

"The project, which I have been passionately advocating, is already in the development stages and is projected to potentially double Namibia's Gross Domestic Product (GDP) by the year 2040. Between 2033 and 2043, the oil and gas sector is anticipated to make an average annual contribution of approximately U$17 billion to Namibia's GDP," Ndafyaalako told a recently held oil seminar.

"What these staggering figures imply is that during this period, oil, either on its own or in conjunction with gas, will make up nearly half of Namibia's GDP. At the peak of production, a confluence of estimated revenue from royalties, corporate taxes, and additional profit taxes could amass a substantial U$5.6 billion annually in state revenue," he said.

This comes as research shows that Namibia could register a GDP of N$699 billion (U$37 billion) at peak production level from the country's newly discovered oil reserves.

According to research conducted by Wood Mackenzie, direct value added could come around N$567 billion (U$30 billion) by 2043.

At the same time, the GDP is projected to be valued at around N$378 billion (U$20 billion).

The latest revelations come as authorities in the country are optimistic about the future economic prospects.

The executive noted that the Venus & Graff pre-appraisal estimates are set to generate over 3,600 jobs at peak, with the potential to maintain these levels with the correct management of skills gained.

He further reiterated that Namibia is poised to receive benefits of up to 54% when the production of the recently discovered oil reserves commences six years from now.

NAMCOR has a 10% free-carry stake in the joint-venture oil exploration and appraisal with Qatar Energy and Shell, which has discovered four wells about 270km offshore Namibia's coast.

The joint-venture group comprises Shell Namibia B.V (45%), QatarEnergy (45%) and NAMCOR (10%).

LEFA SECURES GOOGLE CONTRACT TO MAP NAMIBIA

Local startup LEFA has secured a contract with global tech giant Google to map the country.

The project, spanning 17,000 km, will provide an intimate digital perspective of Namibia's unique landscapes, towns, and cities, which will be featured on Google Street View.

Melkies Ausiku,General Manager at LEFA Transportation Services, said that the implications of the project for the Namibian economy and tourism sector are significant.

"By making the nation's natural wonders, historic sites, and urban landscapes accessible with the click of a button, potential tourists can be enticed to experience the beauty of Namibia first-hand. But it's not just about the views. As part of the project, Google Maps will undergo a significant update concerning Namibia. Residents and visitors will soon notice improved accuracy with updated street names and newly charted roads," he said.

"This digital representation serves as an innovative marketing tool, opening avenues for businesses to attract a global clientele. Local enterprises, ranging from boutique accommodations and eateries to cultural sites and tour operators, can gain unparalleled exposure."

Ausiku said the company will not be going at it alone and has strategically allied with local partners and stakeholders, pooling expertise, knowledge, and resources.

"This collaborative approach ensures that the digital representation will be both authentic and comprehensive," he said.

"With this partnership, Namibia is not just pinning itself on the digital map but is making a resounding statement. A statement that Namibia is ready for the global digital stage, that its landscapes and cities are ripe for exploration, and that it embraces the future with open arms.”

Google Street View is a feature of Google Maps and Google Earth that provides panoramic, 360-degree imagery of streets, roads, and locations in various parts of the world. LEFA is a Namibian ride-hailing startup.