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Inflation falls to a 14 year low

Inflation falls to a 14 year low

By Gerrit van Rooyen
Analyst at Oxford Economics.

Inflation eased to 2.5% y-o-y in November, the lowest rate since August 2005, from 3.1% y-o-y in the previous month, due to lower price inflation in most of the consumer price basket, according to the latest consumer price index (CPI) report.

Looking at the major sub-indices, the food and non-alcoholic beverages and the housing and utilities sub-indices were the biggest contributors (both contributing 0.5 ppt each) to the headline inflation rate. Softer bread, meat and sugar prices ate away at food price inflation. Meanwhile, annual declines in fuel, gas, and tobacco prices also had notable negative contributions to the headline inflation rate.

The headline inflation rate has declined steadily since November 2018, (when it reached a peak of 5.6% y-o-y), and averaged 3.8% y-o-y in the 11 month t end November 2019. Food and transport price inflation has fallen from a high base, while the recession plagued economy has exerted minimal demand side pressures on the CPI.

Furthermore, currency pressures have eased in line with looser global monetary policy in developed countries and expectations of reduced trade tensions. We forecast CPI inflation to tick slightly higher from 3.8% in 2019 to 4.0% in 2020, due to some upward pressure on food, fuel and other administered prices.

We currently expect that interest rate will remain unchanged for the foreseeable future. The continued risk of South African credit rating downgrades in 2020 will likely nudge the Sough African Reserve Bank towards conservatism, which would ordinarily discourage the Bank of Namibia from cutting interest rates.


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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.