The Brief - A monthly wrap-up of News Worth Knowing

SAM SHIVUTE HONORED AT AFRICAN ACHIEVERS AWARDS

Namibia Revenue Agency (NamRa) Commissioner Sam Shivute has been honored with an Excellence in Leadership Award at the recently held African Achievers Awards (AAA) hosted at the House of Parliament in the United Kingdom.

The 2024 AAA edition aimed to highlight and celebrate the remarkable achievements of Africans who are driving positive change across various sectors, including business, politics, education, and social development. Hosted by Baroness Verma, Member of the House of Lords, UK, this year’s edition was held under the theme, “Empowering Africa: Honoring Excellence in Leadership and Innovation.”

BON AT ADVANCED STAGE TO IMPLEMENT COUNTERCYCLICAL CAPITAL BUFFER

The Macroprudential Oversight Committee (MOC) of the Bank of Namibia is at an advanced stage of implementing the countercyclical capital buffer (CCyB) as an additional macroprudential tool to strengthen the banking sector’s resilience. BoN Deputy Governor Leonie Dunn said the CCyB is a macroprudential policy instrument that serves as a measure of protection for the banking sector against the build-up of systemic risks associated with periods of excessive aggregate credit growth.

“This buffer instrument is generally built during good economic times and used during economic downturns,” she said.

HARDAP, //KHARAS REGION BANK ON GREEN HYDROGEN TO BOOST DEVELOPMENT

Hardap Governor Salomon April is optimistic that the growth of the country’s green hydrogen sector will benefit the region, including generating jobs and stimulating economic development.

“This pioneering initiative is expected to create 100,000 domestic jobs and position Namibia as a producer of some of the world’s most affordable green hydrogen, estimated at $2 per kilogramme,” Nedbank Group Managing Executive for Corporate Investment Banking Anel Bosman said.

In his address, the CEO of the Environmental Investment Fund of Namibia, Benedict Libanda, highlighted the increasing global demand for green hydrogen energy and outlined significant opportunities for banks and lenders to participate in this burgeoning sector. The Nedbank Namibia event brought together industry players to discuss the financing prospects, collaboration opportunities, as well as potential sustainable economic expansion opportunities within Namibia’s green energy and green hydrogen industries.

!GAWAXAB HIGHLIGHTS NAMIBIA’S POTENTIAL AT LONDON STOCK EXCHANGE

Bank of Namibia Governor Johannes !Gawaxab says the country’s stability and predictability are key factors in making the nation an attractive investment destination.

“Namibia’s modern financial system and well-developed legal regime contribute significantly toward building investor confidence. In these global turbulent times, Namibia’s stability and predictability make Namibia an attractive destination for investment,” said !Gawaxab.

Regarding price developments, the Governor noted that the monetary policy easing cycle is in the offing in Namibia with the repo rate being kept unchanged since June 2023. “Despite the limited monetary discretion because of the fixed peg arrangement with South Africa, the Bank of Namibia has broadly kept rates at 50 basis points lower than those of the anchor country since December 2022, with a view to support the domestic economy,” he said.

However, looking ahead, Namibia’s real domestic product (GDP) growth is projected to moderate from 4.2% in 2023 to 3.7% in 2024 due to anticipated slowdowns in the primary industry, partly due to drought conditions.

“The biggest risks to Namibia’s growth prospects include the prolonged tight global monetary policy stance, geopolitical tensions, and China’s faltering recovery,” he said.

NAMIBIA TO CONDUCT N$5M NAMIBIA-SOUTH AFRICA GREEN HYDROGEN PIPELINE FEASIBILITY STUDY

The Ministry of Mines and Energy (MME) announced it will conduct a N$5 million (€250,000) study on the feasibility of a cross-border green hydrogen pipeline between Namibia and South Africa. The study will be undertaken by the Green Hydrogen Programme of Namibia and follows the signing of a Memorandum of Understanding (MoU) between the two countries in May 2024 at the World Hydrogen Summit.

The envisioned pipeline would connect Lüderitz in Namibia to South Africa’s Northern Cape, with the potential for future extensions. Minister of Mines and Energy, Tom Alweendo, stated that the study will assess the technical, commercial, environmental, and social feasibility of the project, with a focus on environmental, social, and governance (ESG) best practices. The project brings together key players such as the Western Cape Tourism, Investment and Trade Agency

(Wesgro), the Northern Cape Economic Development, Trade and Investment Promotion Agency (NCEDA), the Namibia Green Hydrogen Programme (NGH2P), Gasunie Waterstof Holding B.V., and Climate Fund Managers (CFM) NL B.V.

NAMIBIA RECORDS OVER 863,000 TOURIST ARRIVALS IN 2023, AN 87.4% SURGE

The Ministry of Environment, Forestry and Tourism says Namibia’s tourism industry recorded 863,872 international visitor arrivals in 2023, an 87.4% increase.

According to the Annual Tourist Statistical Report for 2023, released Monday by Minister of Environment, Forestry and Tourism Pohamba Shifeta, this represents a significant growth from the 461,027 arrivals recorded in 2022. While the figures are still 46% below pre-pandemic levels of 2019, the recovery trajectory is promising.

“Out of the total inbound international tourist arrival numbers, 84.1% came specifically for holidays, 9.4% for visiting friends/ relatives, 4.2% for business travel and 2.3% were in transit to other destinations,” Shifeta said.

INTERNATIONAL CERTIFICATION TO BOOST LOCAL PRODUCE MARKET ACCESS

The country’s produce farmers, certified by the Namibian Agronomic Board (NAB), have earned the local Good Agricultural Practices (GAP) certificate. The certification assures quality throughout agricultural supply chains, boosting the credibility and market presence of local farmers’ produce on both domestic and international markets.

“All the farmers that are going to be recognised have met 100% major compliance criteria and 95% minor compliance criteria on the Primary Farm Assurance (PFA) standard requirements for food safety and hygiene. It helps producers gain gradual recognition by providing an entry level to Global GAP Certification,” Lorna Shikongo-Kuvare, the NAB’s General Manager for Regulatory Services, said.

“Wusten Micro Farming, Metropolis Investments, Orange River Irrigation Projects, Oribi Asset No. 1, and Agricon Mushrooms have been awarded local GAP certification,” Shikongo-Kuvare said.