The nominal value of the building plans completed during August 2020 increased substantially to N$450.2 million compared to N$369 million recorded in July 2020. This is a promising sign for the uptick of domestic economic activity, of which approved building plans have been described as an excellent barometer.
According to the sectoral report that was recently released by the Namibia Statistics Agency (NSA), the composite index of building plans completed for Windhoek, Swakopmund, Walvis Bay, and Ongwediva for August 2020 recorded 371.1 basis points, up by 66.9 basis points and 250.2 basis points when compared with the preceding month and August 2019, respectively.
A composite index is a statistical tool that groups together many different equities, securities, or indexes to create a representation of overall market or sector performance. The increases recorded on monthly basis and over the year were mainly reflected in the nominal value of completed buildings for Windhoek and Swakopmund.
The report stated that in Windhoek, the building plans completed index posted 1031.7 basis points in August 2020 up by 174.6 and 776.4 basis points from the previous month and August 2019, respectively.
“The increase recorded in August 2020 when compared to the previous month was reflected in the nominal value of boundary walls built for residential units. However, the increase recorded over the year was mainly reflected in the nominal value of residential units,” stated the report.
The nominal value of building plans completed in Windhoek was N$398.3 million in August 2020 compared to N$330.8 million and N$98.6 million recorded for July 2020 and August 2019, respectively.
Furthermore, in Swakopmund, the building plans completed index recorded 82.6 basis points in August 2020 up by 14.8 and 35.6 basis points recorded from the previous month and the corresponding month of 2019, respectively.
The report stated that the increases recorded were mainly reflected in the nominal value recorded for additions and alterations and for new residential units. The nominal value of building plans completed in Swakopmund for August 2020 amounted to N$31.6 million compared to N$26 million and N$18.0 million recorded for July 2020 and in the corresponding month of 2019, respectively.
The electricity sources composite index that is composed of own generation (production) and imported electricity stood at 110.8 basis points in August 2020 up by 0.5% and 2.2% from the preceding month and August 2019, respectively.
“The import index stood at 88 basis points in August 2020 while 95.7 basis points were recorded in July 2020, down by 8.1% and 32.3% from the preceding month and over the year, respectively,” reads the report.
A decline of 32.3% in imported electricity registered over the year was mainly reflected in imports from the Skorpion Zinc Mine. It was stated that on a monthly basis, the decline in electricity imports was due to decreased imports from the day-ahead market.
During the period under review, there was an increase in the local production of electricity, registering 176 845 MWh from 156 692 MWh produced in July 2020, while 209 579 MWh of electricity was imported during the same period of August 2020 compared to 309 423 MWh recorded in August 2019.