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New vehicle sales end year on negative note as December 2019 shows decline

New vehicle sales end year on negative note as December 2019 shows decline

The National Association of Automobile Manufacturers South Africa released Namibia’s new vehicle sales numbers for December 2019, which shows that the total vehicle sales declined by 18.4% to 714 units.

The annual aggregate number of vehicle sales registered a decline of 12.7% to 10 389 units in 2019, marking the 5th consecutive decline in annual sales, the report noted. In addition, vehicle sales recorded the lowest units in a month since 711 units in February 2006.

According to the report, new vehicle sales ended the year on a negative note, especially for passenger and light commercial vehicles. Passenger vehicles and light commercial vehicles which make up 93% of total vehicle sales recorded a decline of 10.9% and 17.1% to 4 538 units and 5 101 units, respectively, in 2019.

Sales of medium and heavy commercial vehicles had improved, increasing by 9% and 13.7%, respectively, in 2019. According to Simonis Storms Securities, the uptick in the medium and heavy commercial vehicles can be attributed to the increase in trucks to the uptick in construction activities in 2019.

“These construction activities include property and commercial construction coupled with Road construction. The new Scania trucks hugely contributed to the increase in heavy commercial vehicles and many customers were making replacements as it is seen as a fuel cost effective truck,” Indileni Nanghonga, junior analyst at Simonis Storms said.

Nanghonga furthermore said that the low economic environment and lack of consumer demand does not give hope for a recovery in the motor vehicle industry yet.

“We expect annual vehicle sales to decrease by a smaller margin of 2.8%, in other words, 10 100 units in 2020. The assumption is based on continuous low economic growth, low disposable income and lower spending which are expected to prevail in 2020,” she noted.


 

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.