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Price pressure to ease off during the year

Over the past four months, Namibians were faced with an increase in fuel prices which went up three time, sky-rocketing food prices and an increaseing taxi fares. However, Klaus Schade, an economic researcher, says 2012 could become a better year for Namibians.
Schade bases this view on increased production in the non-diamond mining sector such as copper and uranium, government’s Targeted Intervention Programme for Employment and Economic Growth (TIPEEG) gaining momentum and commencements of other new business activities such as the poultry factory near Windhoek could cover Namibia’s demand for broilers.
However, the International Monetary Fund’s forecast for 2012 was adjusted downward from 3.3% in September 2011 to 2.5% in January 2012. This was mainly due to the continuing sovereign debt crisis in the Euro-zone area.
Schade emphasised that since the uncertainties concerning the sovereign debt crisis in Europe and the high debt levels in the USA are prevailing, it is expected that gold will display a strong performance during 2012. Copper and zinc prices closed of 2011 with 22.5 % and 26.0% respectively but gained some ground again since the beginning of 2012, with copper prices increased by 12 % and zinc prices by 16%.
In his “Economy Watch Namibia-March 2012”, Schade said that the Namibian Dollar depreciated by 22.8, 22.2 and 18.9 % against the US dollar, British pound and Euro respectively during 2011. Since the beginning of 2012 however, the local currency strengthened again by between 4 and 5 %.
He noted that Namiba has experienced one of the lowest inflation rates within the Southern African Customs Union during 2011, ending the year with an annual inflation rate of 5.0%, on par with two other Southern African countries, Lesotho and South Africa.
The recent increase in excise duties also known as “sin taxes” will result in higher inflation rates for the category of “Alcoholic beverages”, while the drop in maize prices on international markets is expected to filter through to food prices and ease the price pressure. Namibians can expect further electricity increases in the middle of the year and continous strong demand for houses that will result in upward price pressure for the housing category. Overall, Schade said that the country can expect inflation to move towards 7% on average during 2012.
Schade believes that government should consider calculating and publishing inflation rates for higher income and lower income households in addition to the average inflation measure. This, Schade concludes, will provide the government with the necessary information to adjust social grants regularly.
Namibia has experienced one of the lowest inflation rates within the Southern African Customs Union during 2011, ending the year with an annual inflation rate of 5.0%– on par with Lesotho and South Africa.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.