January
More data needed to confirm viability of oil discovery
The mines and energy ministry yesterday reiterated that the oil deposits discovered in the Orange Basin offshore Namibia by Shell have not yet been confirmed to be commercially viable but do indicate the existence of an active petroleum system in the area.
Both Shell, with its Graff-1 well, and TotalEnergies, with its Venue-1 well, are operating two high profile wells within the Orange Basin and the recent success in confirming oil deposits is expected to make the Orange Basin one of the hottest exploration destinations in the world.
Global diamond demand regains some shine
Namibia’s Diamond Production Index increased on a monthly basis by 5.4% in November 2021, compared to a miniscule growth of 1.6% recorded a month earlier. On an annual basis, the index increased by 3.3%.
“The increase registered on a monthly basis in the production of diamonds was mainly due to an increase in the global demand,” this is according to the sectoral report released last week by the Namibia Statistics Agency (NSA).
For the month of November 2021, the volume of diamonds produced amounted to 148 165 carats. The production for October 2021 stood at 140 565 carats, while 143 391 carats were produced in the corresponding month of 2020.
February
Local agriculture goes digital to enhance food security
Minister of agriculture Calle Schlettwein this week officiated the launch of the pilot electronic voucher (e-voucher) system for the Build Back Better urban agriculture programme. The e-voucher system is Namibia’s first digital agriculture solution for enabling market access to agricultural products and improving the distribution of quality agricultural inputs to smallholder farmers through the involvement of various agro-dealers.
“The e-voucher system is piloted under the project: Strengthening Namibia’s food systems to recover from emergencies and disease-related shocks through the Build Back Better (BBB) programme,” said Schlettwein.
Namibia records highest inflation since 2019
The annual inflation rate for January 2022 increased to 4.6%, compared to 2.7% recorded in January 2021.
This is according to the latest monthly consumer price index for January 2022. Namibia Statistics Agency (NSA) CEO Alex Shimuafeni this week said this is the highest annual inflation rate recorded since February 2019. On a monthly basis, the inflation rate increased to 1.1%, compared to 0.4% registered in the prior month.
March
Oil storage facility crucial for security of supply
The National Oil Storage Facility at Walvis Bay, which has been marred by controversy due to an exorbitant escalation of funding requirements, is crucial for the security of petroleum products’ supply for Namibia. This is according to the National Petroleum Corporation of Namibia (Namcor), which explained how the facility has increased the country’s security of supply from two weeks to at least 45 days of storage capacity.
The facility, which was initially estimated to cost less than N$1 billion but for which over N$6 billion was eventually spent, allows the country to keep a given threshold of products in stock, particularly for situations where petroleum products cannot be imported from the international market.
Oil discoveries could transform economy
Once the commercial viability of Namibia’s first-ever noteworthy oil discoveries off the coast by Shell and TotalEnergies have been verified, these hydrocarbon detections have the potential to benefit the country’s economy by billions of dollars in revenue. In addition, a bourgeoning local oil industry holds the potential to create unique business opportunities for the country’s economic development through the establishment of a new sector that could provide much-needed jobs.
April
Rural electrification stands at 20%
According to Namibia’s household national data, there are 235 884 rural households, of which 35 855 are connected to the grid, while 18 324 have access to solar energy, giving rural electrification a rate of 20%.
In efforts to strengthen the renewable energy sector in Namibia with a focus on promoting off-grid electrification in rural areas, Deputy Minister of Mines and Energy Kornelia Shilunga yesterday launched the Green People’s Energy project under the solar revolving fund (SRF) of the ministry. The Green People’s Energy Namibia is a joint project between the Federal Republic of Germany through GIZ and Namibia.
NamRA waives over N$11 billion in penalties
The Namibia Revenue Agency (NamRA) through the electronic tax relief programme, which ended on 31 January 2022, waived a total amount of over N$11 million in penalties. This was revealed by NamRA commissioner Sam Shivute at the occasion of taxpayers and traders appreciation day held last week.
Shivute stated the total number of taxpayers who participated in the programme stood at 47 493, while an amount of N$1 320 528 999 was collected and paid into the state account.
May
Angola disturbed by fuel smuggling
Fuel smuggling continues unabated in northern Namibia, but both governments are concerned and unhappy with this practice as even young children have been involved to make a living. After fuel price increases in Namibia, smugglers eyed this as a business opportunity. Mines and energy minister Tom Alweendo said it has come to his attention that the Angolan government is disturbed by the fact that Namibians benefit from subsidised fuel in their country.
Namibia to wean itself of electricity imports
In 2020, an amount of N$500 million was allocated from the long run marginal cost fund to partially fund the construction of Namibia Power Corporation renewable energy plants.
Of this, N$342 million was allocated to the 20MW solar PV plant at Omburu.
The remaining amount of N$158 million will be used for part funding of the 40MW NamPower owned wind plant to be procured soon.
All these are efforts to make sure Namibia has enough electricity, rather than depending on the importation of electricity.
June
Heineken merger to boost NBL brands
Namibia Breweries Limited (NBL) leadership is adamant that becoming part of Heineken, the second largest brewer in the world, will allow NBL to better compete with global players domestically and internationally.
If the proposed merger, which entails Heineken acquiring a controlling interest in the local company, NBL expects to be able to create significant opportunities for its core brands like Windhoek Lager in Africa and beyond.
AfriTin’s lithium discovery a global game-changer
AfriTin Mining is convinced it has discovered one of the biggest lithium resources in the world right here in Namibia. Lithium is one of the most sought-after metals in the world right now as its most important use is in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles.
In a recent statement, AfriTin CEO Anthony Viljoen said the exploration results “produced lithium grades surpassing our expectations and reinforce our belief that Uis is host to one of the largest lithium resources globally”.
July
ReconAfrica and Namcor spud first of four oil targets
Canadian oil and gas company Reconnaissance Energy (ReconAfrica) and its joint venture partner, the National Petroleum Corporation of Namibia (Namcor), have confirmed spudding of the first of four wells on 25 June 2022 that were identified with previous exploratory drilling. ReconAfrica recently completed the second phase of a 2D seismic programme (761km) and commencement of the first seismically defined, initial four-well drilling programme.
Alweendo: Neglecting other sectors could cause oil curse
Mines minister Tom Alweendo has reiterated his stance that the presence of oil in Namibia can be beneficial, and does not automatically need to lead to the dreaded oil curse.
However, the mines and energy minister warned that if the extractive industry is poorly managed, the influx of oil revenues can distort Namibia’s economic fundamentals, can create corruption, and can create conditions that trigger conflict. Alweendo was speaking on Monday during a discussion on Namibia’s petroleum activities.
August
Repo rate expected to rise well into 2023
Indebted Namibian households and corporates can continue to expect a tight financial environment for the foreseeable future as interest rate hikes are expected to rise further towards the end of this year and during the first half of 2023.
“We expect rising interest rates, coupled with high rates of inflation to weigh on consumer spending, a key driver for our economy. However, early estimates indicate that central banks could be cutting policy interest rates as soon as the second half of 2023. So, there might be some respite for consumers in the near future,” reads an analysis by Simonis Storm.
MTC ready to drive Namibia’s smart economy
MTC is steadfast and ready to help drive a smart economy and usher the country into digitalisation parallel to the Fourth Industrial Revolution.
A smart economy is based on technological innovation, resource efficiency, sustainability and high social welfare with the overall goal of improving the quality of life of citizens.
MTC’s readiness was confirmed by its managing director Licky Erastus, who this week made the remark at the Ongwediva Annual Trade Fair.
September
Regional oil refinery on the cards
Regional oil refineries are being investigated to make Africa more independent in terms of oil supply. This was confirmed on Monday by mines and energy minister, Tom Alweendo, who recently returned from West Africa’s leading energy forum in Dakar, Senegal, that took place from 1 to 2 September with the aim to determine the future for the continent’s energy.
“This may take billions of dollars in investments and will take years to realise,” said Alweendo while responding to refinery possibility queries from the media.
Chevron to enter Namibia’s offshore oil race
Mines and energy minister, Tom Alweendo, yesterday confirmed that one of the world’s biggest publicly owned oil and gas companies, Chevron, is interested in acquiring a majority stake in a deep-water exploration block offshore Namibia. According to sources, Chevron is particularly intent on securing exploration Block 2813B, directly north of the recent Venus discovery operated by TotalEnergies.
Speaking to New Era at the announcement of domestic fuel decreases, Alweendo explained that Chevron directly contacted the shareholders of the offshore block for possible acquisition.
October
Namibia, EU focus on strategic value chains
Namibia and the European Union (EU) are soon expected to ink a memorandum of understanding that eyes building strategic and sustainable mineral and green hydrogen value chains. This is according to EU Ambassador to Namibia, Sinikka Antila, who paid a courtesy call on President Hage Geingob at State House on Friday.
Antila said the desire is to have the memorandum of understanding (MoU) signed during the UN Climate Change Conference, widely known as COP 27, scheduled to take place in Egypt during November 2022.
Airline absence squanders profitable opportunities
The absence of local inter-continental airlines from designated routes is causing particular pain in the aviation industry as this has left many southern African markets under-served. The minimal aviation presence is in turn choking regional capacity, thereby squandering valuable commercial opportunities and slowing down the recovery of lucrative long-haul foreign tourism and trade.
This warning was issued last week by the International Air Transport Association’s (IATA)’s regional vice president (VP) for Africa & Middle East, Kamil Alawadhi.
November
Government to fast-track tax relief measures
Deputy finance minister Maureen Hinda-Mbuende says the implementation of measures to provide tax relief to taxpayers will be fast-tracked.
She made these remarks on Tuesday in the National Assembly while delivering her motivation statement for the tabling of the income tax amendment bill.
According to her, the amendments are necessary to provide a measure of relief to taxpayers and further enhance the efficiency and fairness of the tax system.
Hinda-Mbuende stated the amendment bill proposes some relief to taxpayers, such as a deductible amount on the pension fund and educational policy contributions that will be increased from the limit of N$40 000 to N$150 000.
Namibia launches green hydrogen strategy
On Friday, Namibia’s Green Hydrogen Council launched its green hydrogen strategy, which supports the country’s commitment to the Paris Agreement on climate change, with the ultimate goal of reducing emissions to net zero by 2050.
The strategy also fulfils the promise of President Hage Geingob at COP26 Glasgow, Scotland, which reaffirmed Namibia’s support for the adoption of a robust Article 6 at COP26. This critical step would provide the bedrock of an international carbon market mechanism necessary to mobilise large-scale private investment for climate action and to drive crucial
innovation.
December
Masterclass identifies value chain for green hydrogen
A two-day Green Hydrogen Masterclass commenced in the capital yesterday.
The event brings together experts and the Namibian public from industry, academia, government and MSMEs with an interest in the sector, who met to discuss the various themes related to the research and development of the renewable energy source.
The event is organised by the Hanns Seidel Foundation in partnership with the Namibia Green Hydrogen Research Institute, the University of Namibia and the Namibia Investment Promotion and Development Board.
No policy intervention for domestic financial system
There is no need at this stage for macroprudential policy intervention in Namibia’s financial system. This is because the system in terms of the banking and non-banking industries remains liquid, profitable and well-capitalised, while the critical payment infrastructure operated efficiently. The central bank will continue to monitor unfolding developments and when warranted, take the necessary remedial macroprudential actions with the tools at its disposal.