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Average GDP declines in the last four years – Research Analysts

Average GDP declines in the last four years – Research Analysts

Research by Simonis Storm Securities shows that the average Gross Domestic Product (GDP) over the last 4 years declined to 0.6% compared to the long-term average of 3%, with the biggest decline on average recorded from the construction, agricultural, administrative and wholesale and retail trade sectors.

The wholesale and retail sector, which is the biggest contributor to real GDP, has been on a decline due to lower spending caused by high unemployment and consumer indebtedness.

Furthermore, mining and manufacturing sectors, contributing each about 10% to real GDP, are facing structural challenges.

“Weak commodity prices coupled with mines going into care and maintenance (Langer Heinrich and Trekkopje) and facing possible closure (Weatherly and Scorpion Zinc) are threatening the medium term growth of the sector. Weak and unclear policies and regulations are some of the contributors to a struggling sector,” Simonis Storm indicated.

The firm however expects a small recovery in the agricultural sector as live-stock farmers restock, stemming from normal-to-above-normal rainfall that can be expected in the first quarter of 2020 in northernmost and central to southern parts of Namibia, which could provide respite to the crop farmers.

Additionally, the construction sector is expected to rebound as the African Development Bank loan gets disbursed to fund road and rail construction.

“We therefore expect the economy to contract by 1.1% on a fair case scenario (currently leaning more towards -2% our worst-case scenario) in 2019 before it expands by 0.9% in 2020,” Simonis Storm 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.