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Headline inflation falls to 14-year low

Headline inflation falls to 14-year low

Headline inflation ticked lower to 2.1% in January, falling to a fresh 14 year low, according to the latest consumer price index report released by the Namibia Statistics Agency.

Headline inflation surprised slightly to the downside in January due to a deflation in the housing,
water, electricity, gas and other fuels (-1.2% from 2.9%) coupled with a drop in educational inflation to 5.7% from 12% in the prior year. According to the Junior Analyst at Simonis Storm Securities, Indileni Nanghonga, better rainfall in the beginning of 2020 should support low prices in agricultural products, especially fruit and vegetables as well as cereals, which have increased in excess of 10% in 2019.

“For most countries, low inflation and stagnating economic growth would induce interest rate cuts. Namibia on the other hand, still has interest rates hovering at 6.50% as fiscal and credit risks creep in. Bank of Namibia is sitting on the 18 February and we expect an interest rate cut of 25bps as inflation risk subsides,” Nanghonga said.

Inflation in the water and electricity space stood at 3.8% and -1%, respectively in January 2020 and with the better rainfall this year there has been an uptick in the overall dam levels, currently at
20.9% of full capacity (lowest at 10% of full capacity in 2018). Subsequently, there are expectations in power generation specifically from the Ruacana Power Station.

PSG Namibia forecast is for inflation to tick somewhat higher from 3.8% in 2019 to 4% in 2020 due to expected upward pressure on food, fuel, and other administered prices.

“However, falling energy prices over the past month (the benchmark Brent crude oil price fell 12% in January) due to global demand concerns and heightened by the novel coronavirus outbreak, are a significant downside risk to our forecast,” Shelly Louw, Research Analyst at PSG 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.