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More pain for vehicle dealers, owning and operating a car increased by 15.5% in a single month

More pain for vehicle dealers, owning and operating a car increased by 15.5% in a single month

Annual inflation is right back where it was a year ago, relentlessly pushed higher and higher every month by a combination of rising fuel prices and a depreciating South African Rand. A year ago, however, the trend was downward while this year for the past six month, the trend is upward.

Annual inflation measured monthly, came in at 5.1% for October, a mere tenth of a percentage point less than the 5.2% growth in October last year. The five consecutive rises in petrol and diesel prices contributed most to the growing inflation rate, increasing by a whopping 13.6% and adding more than 35% of the 5.1% increase.

Upon releasing the latest consumer price index, the Statistician General, Mr Alex Shimuafeni said “The highest contributors to the October 2018 annual inflation rate were Transport (35.3 percent), Housing, water, electricity and other fuel (21.3 percent), Alcoholic beverages and tobacco (13.2 percent) and Food and non-alcohol beverages (10.5 percent). The rest of the groups contributed 19.7 percent all together.”

“The annual inflation rate for the Transport group for October 2018 stood at 13.6 percent compared to 4.4 percent registered in October 2017, resulting in a significant increase of 9.2 percentage points. The increase resulted from increases witnessed in the price levels of the sub components of Public transport services which increased from (0.0 percent to 18.0 percent) and Operation of personal transport equipment which increased from (4.7 percent to 15.5 percent),” he elaborated.

Headline inflation has been growing steadily since May this year after it plateaued around 3.6% from January to April. Annual inflation measured monthly was at its highest last year January at 8.3% and at its lowest in February and March this year at 3.5%.

Second round effects are now coming into play as a result of the increase in fuel prices. Namibia imports around 80% of its consumables by road from South Africa indicating that the 17% rise in transport costs since May this year will still percolate through to a very large part of the retail sector.

On a month on month basis, the rate of inflation has slowed from 0.8% to 0.4%.


 

About The Author

Daniel Steinmann

Brief CV of Daniel Steinmann. Born 24 February 1961, Johannesburg. Educated at the University of Pretoria: BA, BA(hons), BD. Postgraduate degrees are in Philosophy and Divinity. Editor of the Namibia Economist since 1991. Daniel Steinmann has steered the Economist as editor for the past 29 years. The Economist started as a monthly free-sheet, then moved to a weekly paper edition (1996 to 2016), and on 01 December 2016 to a daily digital newspaper at www.economist.com.na. It is the first Namibian newspaper to go fully digital. Daniel Steinmann is an authority on macro-economics having established a sound record of budget analysis, strategic planning and assessing the impact of policy formulation. For eight years, he hosted a weekly talk-show on NBC Radio, explaining complex economic concepts to a lay audience in a relaxed, conversational manner. He was a founding member of the Editors' Forum of Namibia. Over the years, he has mentored hundreds of journalism students as interns and as young professional jourlists. He regularly helps economics students, both graduate and post-graduate, to prepare for examinations and moderator reviews. He is the Namibian respondent for the World Economic Survey conducted every quarter for the Ifo Center for Business Cycle Analysis and Surveys at the University of Munich in Germany. He is frequently consulted by NGOs and international analysts on local economic trends and developments. Send comments to daniel@economist.com.na

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.