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Annual inflation continues slowing down but headline inflation creeping up

Annual inflation continues slowing down but headline inflation creeping up

According to the Namibia Statistics Agency (NSA), the June 2018 annual inflation rate stood at 4% as compared to 6.1% recorded in June 2017.

Statistician General at the NSA, Alex Shimuafeni said that the twelve month average annual and average monthly inflation rate for the period July 2017 to June 2018 stood at 4.5% and 0.3% respectively, while the calendar year average from January 2018 to June 2018 was estimated at 3.7% and 0.5%.

“On a monthly basis, the inflation rate decreased to 0.2% compared to 0.4% recorded during the previous month,” he added.

Meanwhile, Klaus Schade, research associate at the Economic Association of Namibia said that headline inflation is continuing its upward trajectory mainly because of fuel price increases.

“We have, however, expected a sharper increase in transport inflation, and hence in overall inflation, since fuel prices for Windhoek increased by an average of 14.5% in June 2018 compared to June 2017,” he said.

Schade stressed that fuel price increases in July and most likely also in August will put further upward pressure on the inflation rate. He explained that if this increase happens, it will also affect production costs and, if it continues, it will result in second-round effects and price increases for goods sensitive to the cost of fuel.

“Likewise, we expect the inflation rate for bread and cereals to increase further mainly because of the low base effect since May 2017 when bread and cereal prices started to actually decline. On the other hand, better grazing conditions could result in a further slowdown of meat prices. Food price could remain at current level, because of the opposing trends of bread price and meat price increases,” Schade said.

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


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.