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Headline inflation remains stable at 3.5%

Headline inflation remains stable at 3.5%

According to the Namibia Statistics Agency (NSA), the headline inflation rate was recorded at 3.5% year-on-year (y-o-y) last month, the same rate as in February.

The food and non-alcoholic beverages sub-index increased by 2.7% y-o-y in March, up from 2% in February. Meanwhile, the month on month Consumer Price Index (CPI) inflation rate was recorded at 0.1% in March, down from 0.3% in February.

Headline inflation has fallen sharply from 8.2% y-o-y in January 2017 to 3.5% y-o-y last month, thanks to moderating food inflation and rental costs. Lower food inflation has mainly been driven by a decrease in grain prices, while slower growth in rental prices reflects weak housing demand (also evidenced by the moderation in house price growth) due to the weaker economy,” PSG Konsult said.

Looking ahead, PSG Konsult said that a stronger Namibia dollar (compared to last year) should help to ease price pressures, but the possibility of higher international oil prices due to a larger-than-expected increase in global fuel demand is un upside risk to inflation.

The Namibia dollar has appreciated significantly since December 2017, mostly thanks to market-favourite Cyril Ramaphosa’s election as president of South Africa, following Jacob Zuma’s resignation as head of state in February 2018. Whether the Namibian dollar can hold on to these gains depends on how Ramaphosa will manage to improve South Africa’s fiscal balance, provide more clarity regarding policy and clean up corruption,” PSG Konsult added.

Furthermore, the firm warned that another risk to the currency that has emerged in the last couple of months is the possibility of a trade war (rising global import tariffs) that could reduce global growth and contribute to emerging market currency weakness.


About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

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

Promotion

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.