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Posts by Edgar Brandt:
Current oil market dynamics, where demand and supply are out of sync and an oil price super-cycle lasts for the short- to medium-term, place the Namibian government in a better bargaining position to increase its take of 10% in resource projects to a higher level. This is a recommendation from a report released this week by local stock brokerage Simonis Storm Securities (SSS). The management of Cheetah Cement have called demands by the Mineworkers Union of Namibia unrealistic, and labelled threats of industrial action by the 200-strong workforce as counter-productive. To reach a forecasted 2.5% growth rate during 2022, the domestic economy’s quarterly Gross Domestic Product (GDP) will need to increase by between 2% and 3% on average per quarter. This is according to Simonis Storm Securities’ quarterly economic review dissecting the second quarter of this year. I am sure you are aware of the popular adage that Africa is not for the faint of heart or the weak. While global economists continue to debate the possibility of a worldwide recession, Namibia has been advised to consider increasing investment, particularly into social infrastructure, rather than increasing operational expenditure. The Southern African Customs Union has claimed a landmark victory for its poultry industry in what it called a historic milestone. On Monday this week, a South African judge ordered that the Johannesburg Stock Exchange (JSE) is interdicted and restrained from suspending Trustco and implementing a ruling by South Africa’s Financial Services Tribunal that had dismissed the Namibian company’s appeal to remain on Africa’s largest stock exchange. The Ohlthaver and List Group this week concluded wage increase agreements with two of its subsidiaries, Pick n Pay Namibia and Hangana Seafood. Both subsidiaries signed one-year substantive agreements which will see bargaining unit employees receive a 6.5% increase on their basic salary packages as of 1 July 2022. The trade ministry and the environment ministry will co-finance the immediate rehabilitation of water points at the Kavango Cattle Ranch (KCR) and fast-track the establishment of a wildlife reserve on the massive property to increase the ranch’s revenue through tourism. Rising global prices of vehicle components and energy production, coupled with a weak Rand exchange rate, are likely to result in continued price increases for vehicles in Namibia. Despite more modest growth being experienced in Namibian household mortgages, compared to corporate mortgages, pipeline construction activity in the residential segment of the market continues to record more momentum. Local economists yesterday warned the central bank’s decision to increase the repo rate by rate by 75 basis points to 5.50% is detrimental to domestic economic growth, could reverse valuable economic recovery gains made and will impact lower-income households the most. Canadian oil and gas explorer ReconAfrica has received a three-year extension on its Environmental Clearance Certificate (ECC) from Namibia’s environmental commissioner in the environment ministry. The extended ECC is valid from 26 August 2022, until 26 August 2025, with the extension having been approved on 11 August 2022. Mines and energy minister Tom Alweendo is leading a Namibian delegation to West Africa’s leading energy forum in Dakar, Senegal, from 1 to 2 September. Namibia’s 10% participating interest in recent oil discoveries by TotalEnergies and Shell, which is held through the National Petroleum Corporation (Namcor), is a carried interest. In a post Covid-19 era, the mining sector is faced with difficult economic head wings, which have brought about supply side driven inflation of most commodities, not to mention the sky-rocketing fuel price. The debut of Debmarine Namibia’s N$7 billion state-of-the-art vessel, Benguela Gem, has already increased diamond recovery volumes by 67.2% when compared to production figures from the previous year. Trevali Mining Corporation recently confirmed credit approval from Standard Bank of Namibia and Standard Bank of South Africa for a Senior Secured Financing Facility of US$110 million to fund the expansion of the company’s Rosh Pinah mine in southern Namibia. The Skorpion Zinc mine and refinery in southern Namibia is currently under care and maintenance, which is a mining terms used to describe processes and conditions when a mine is closed, but where there is potential to recommence operations at a later date. Namibia hopes to gain valuable experience and skills for its burgeoning oil industry by tapping into the knowledge of Equatorial Guinea, where Mobil Oil (now ExxonMobil) discovered the elusive black gold more than 25 years ago.