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Kwanza legal tender in Oshikango

Dr. Ricardo D`Abreu, Vice Governor, Banco Nacional de Angola, behind the Governor of the Bank of Namibia, Mr Ipumbu Shiimi, on Monday this week, when the two central banks announced a deal to accept the Angolan Kwanza as legal tender in Oshikango.

Dr. Ricardo D`Abreu, Vice Governor, Banco Nacional de Angola, behind the Governor of the Bank of Namibia, Mr Ipumbu Shiimi, on Monday this week, when the two central banks announced a deal to accept the Angolan Kwanza as legal tender in Oshikango.

The Governor of the Bank of Namibia, Mr Ipumbu Shiimi, this Monday, 22 September signed a Currency Conversion Agreement between the Bank of Namibia and Banco Nacional de Angola paving the way for the use of the Kwanza at the border town of Oshikango in northern Namibia. Oshikango is a trade hub with bonded warehousing where hundreds of tonnes of goods destined for traders in Angola, leave Namibia every day.
“The Bank of Namibia and other stakeholders have been concerned about the decline in trade between Namibia and Angola, in particular the once thriving trading business in Oshikango. In an attempt to understand this development, the Bank undertook research, which showed that trade between Namibia and Angola was conducted in a foreign currency, mainly the US dollar, as an instrument of payment. Therefore, a shortage of the US dollar contributed to the decline in trade. This prompted the Bank of Namibia to engage the Banco Nacional de Angola to look at the possibility of entering into a Currency Conversion Agreement,” the central bank said in a statement.  

The Bank of Namibia said, “After extensive discussions and consultations, the two sister central banks concluded this agreement to facilitate reciprocal conversion of the national currencies of the Republic of Angola and the Republic of Namibia. It will allow business people and traders to legally export either Namibia Dollar to Angola or the Angola Kwanza to Namibia and exchange them into local currency for trading purposes. The agreement will further strengthen the economic relations between the two countries.” “The conversion of the currencies will be applicable only to the border towns of Oshikango and Santa Clara, and the two Central Banks will continue this engagement to ensure the success thereof. The possibility of extending the arrangement to other towns along the border will be investigated and such results will be addressed accordingly. The agreement will be effective six months from the signing date,” the statement concluded.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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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.