The National occupancy rate for September declined to 52.9 % from 61.2% which was recorded for August 2022. This resulted in a monthly decline of 8.3%. (See figure 1 below). According to the Hospitality Association of Namibia, September’s national occupancy was slightly lower compared to that of the peak tourism month August the rate was still twice as high as in September 2021, which indicates that tourism recovery has doubled since 2021.
All in all, a very positive and encouraging result to see the Namibian tourism recovery advance to this level in this short time span and proof that most of Namibia’s source markets are back in full swing, Central Europe remains the strongest market with over 66% of tourists, of which over 35% stem from Germany, Austria, and Switzerland, but the French and Italian markets were also prominent in both August and September.
The US market also seems to have recovered well, making up over 4% of the occupancy in September, almost double what it was in 2021.
The recovery of the tourism sector continues to be on the right track, this is reflected by the continuous positive national occupancy rates. The outlook for the sector remains positive due to positive trends reflected in international arrivals and the demand for accommodation services.
Figure 1: National Occupancy rates vs. HKIA arrivals, Namibia (September 2021- September 2022)
The National occupancy rate for October 2022 increased to 55.3% from 52.9% recorded for September 2022. (See figure 1 below). According to the Hospitality Association of Namibia, this is a 60% increase when compared to 2021, and compared to the 69,8% occupancy experienced in October 2019, i.e. pre-pandemic, national occupancy is about 80% back to normal performance before the Covid-19 pandemic.
The European market continues to be Namibia's top tourism market, representing about 65% of all guests, from Scandinavia in the North to Spain in the South of Europe. In 2019, Europe represented some 60% of all occupants.
The outlook for the sector is positive due to positive sentiments reflected in international arrivals and the continuous high demand for accommodation services.
Figure 1: National Occupancy rates vs. HKIA arrivals, Namibia (October 2021- October 2022)
A total of N$ 21,694,132.95 worth of shares was traded on the NSX on Monday with about N$ 3,801,275 worth of shares belonging to Anglo-American plc and N$ 1,145,100 from FirstRand Namibia Ltd on the home front. No ETFs were traded on Monday.
HEI Market Commentary
From the trading activity that took place:
Anglo-American plc performance on the overall bourse increased by 2.6% at closing as gold prices continues to rise by 20.09%.
FirstRand Namibia Ltd shares were traded by one market participant, with no change in share price a closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
46.00
46.00
0.00%
Nictus Holdings
NHL
1.75
1.75
0.00%
Capricorn
CGP
13.03
13.03
0.00%
First Rand Namibia
FNB
33.00
33.00
0.00%
Standard Bank Namibia
SNO
4.41
4.42
0.23%
Oryx Limited
ORY
11.50
11.50
0.00%
Letshego
LHN
3.00
3.00
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
13.20
13.20
0.00%
Mobile Telecommunication Company
MOC
7.04
7.04
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
9.00
9.00
0.00%
Table 2: Primary listed Trades
Name
South African Dual Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
712.16
730.43
2.57%
B2Gold Corporation
B2G
66.26
66.86
0.91%
Oceana Group Limited
OCG
64.81
66.46
2.55%
Mediclinic International Plc
MEP
102.42
102.51
0.09%
Truworths
TRW
57.60
59.40
3.13%
Nedbank Group Limited
NBK
209.14
214.95
2.78%
Standard Bank Group
SNB
166.76
171.25
2.69%
Shoprite Holdings
SRH
231.29
235.54
1.84%
FirstRand Limited
FST
62.18
64.11
3.10%
Momentum Metropolitan Holdings
MMT
17.78
18.14
2.02%
Old Mutual Ltd
OMM
10.99
11.32
3.00%
Sanlam Limited
SLA
51.08
52.96
3.68%
Santam Limited
SNM
255.69
256.67
0.38%
Vukile Property Fund Limited
VKN
12.95
13.03
0.62%
Investec Limited
IVD
107.79
108.84
0.97%
PSG Konsult Limited
KFS
12.20
12.20
0.00%
Table 3: Dual-Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
297.37
296.58
-0.27%
New Gold Palladium ETF
NGNPLD
295.72
293.15
-0.87%
New Gold Platinum ETF N
NGNPLT
178.41
178.55
0.08%
New Funds S&P NAM Bond
NFNAMA
18.05
18.20
0.83%
Table 4: ETFs
Exchange Rates @ 08:00
USD/NAD
16.94
EUR/NAD
18.19
GBP/NAD
20.62
EUR/GBP
0.88
EUR/USD
1.04
GBP/USD
1.21
AUD/USD
0.69
USD/JPY
131.94
Commodities @ 08:00
Gold
1,878.75
Silver
23.72
Platinum
1,092.50
Palladium
1,787.03
WTI
74.46
Brent
79.42
Table 5: Exchange Rates and Commodities
Local News
World food prices fell for a ninth month in a row in December, though they hit their highest level on record for the full year in 2022. (Sun Newspaper)
Onkoshi, one of Namibia Wildlife Resort’s best and most unique Etosha camps has been given a multi-million-dollar facelift, which is expected to be completed in February 2023 (New Era Newspaper)
National Fishing Corporation of Namibia (Fishcor) will no longer be paying forme4r Seaflower Pelagic Processing (SPP), which has now been renamed Princess Brand Processing. (The Namibian)
Sub-Sahara News
President Cyril Ramaphosa played down suggestions that an amendment to the central bank’s mandate is imminent while confirming that a possible change remains under discussion. (News24)
Kenya Airways KQNA.NR is experiencing flight disruptions due to delays in securing aircraft components required for maintenance, the carrier said late on Monday. (CNBC Africa)
The sale of electric cars is growing. Globally, some 2 million electric vehicles were sold in the first quarter of 2022 - 75% more than in the first three months of 2021. Most, though, are sold in high-income countries. (All Africa News)
International News
China's embassy in Seoul said on Tuesday it has stopped issuing short-term visas for visitors from South Korea, the first retaliatory move against countries imposing COVID-19 curbs on travelers from China, where the virus is spreading unchecked. (Reuters)
Asian stocks turned in a mixed performance on Tuesday as investors digested disappointing Chinese data and awaited a slew of U.S. economic data this week for clues on the outlook for the economy and interest rates. (RTT News)
Ukraine says it is strengthening its forces around Bakhmut in the eastern Donbas region and repelling constant attacks there by the Russian mercenary group Wagner. (Aljazeera News)
A total of N$ 2,488,997.13 worth of shares was traded on the NSX on Tuesday with about N$ 220,020 worth of shares belonging to Namibia Breweries on the home front. No ETFs were traded on Tuesday.
HEI Market Commentary
From the trading activity that took place:
Namibia Breweries shares were traded by market participants, resulting in no change in share price
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
46.01
46.01
0.00%
Nictus Holdings
NHL
1.75
1.75
0.00%
Capricorn
CGP
13.02
13.02
0.00%
First Rand Namibia
FNB
32.00
32.01
0.03%
Standard Bank Namibia
SNO
4.20
4.20
0.00%
Oryx Limited
ORY
10.24
10.24
0.00%
Letshego
LHN
3.02
3.02
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
13.00
13.00
0.00%
Mobile Telecommunication Company
MOC
7.02
7.02
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
9.00
9.00
0.00%
Table 2: Primary listed Trades
Name
South African Dual Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
654.19
670.07
2.43%
B2Gold Corporation
B2G
60.08
57.66
-4.03%
Oceana Group Limited
OCG
59.00
59.27
0.46%
Mediclinic International Plc
MEP
102.00
100.47
-1.50%
Truworths
TRW
56.02
55.39
-1.12%
Nedbank Group Limited
NBK
228.24
225.01
-1.42%
Standard Bank Group
SNB
181.66
177.97
-2.03%
Shoprite Holdings
SRH
251.99
250.16
-0.73%
FirstRand Limited
FST
66.96
65.04
-2.87%
Momentum Metropolitan Holdings
MMT
18.04
17.78
-1.44%
Old Mutual Ltd
OMM
11.15
10.94
-1.88%
Sanlam Limited
SLA
55.75
54.91
-1.51%
Santam Limited
SNM
263.17
256.60
-2.50%
Vukile Property Fund Limited
VKN
14.60
14.41
-1.30%
Investec Limited
IVD
103.02
103.67
0.63%
PSG Konsult Limited
KFS
11.95
11.93
-0.17%
Table 3: Dual-Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
279.18
277.98
-0.43%
New Gold Palladium ETF
NGNPLD
304.48
305.46
0.32%
New Gold Platinum ETF N
NGNPLT
163.68
164.08
0.24%
New Funds S&P NAM Bond
NFNAMA
17.61
17.63
0.11%
Table 4: ETFs
Exchange Rates @ 08:00
USD/NAD
16.96
EUR/NAD
17.56
GBP/NAD
20.32
EUR/GBP
0.86
EUR/USD
1.03
GBP/USD
1.21
AUD/USD
0.67
USD/JPY
138.47
Commodities @ 08:00
Gold
1,749.75
Silver
21.26
Platinum
989.20
Palladium
1,859.78
WTI
78.61
Brent
84.62
Table 5: Exchange Rates and Commodities
Local News
For the first time, Agra reported a net profit before tax of more than N$100 million for the financial year 2021/22. (Sun Newspaper)
The Namibia Trade Forum (NTF) and Development Bank recently launched an agreement in terms of which NTF will assist export-oriented enterprises and start-ups to apply for DBN finance (New Era Newspaper)
Economic analysts say it is still too early to comment on economic conditions should the newly elected Swapo vice president (The Namibian)
Sub-Sahara News
South African Airways planes, or, rather, aircraft once used by the airline, are returning to service – in countries such as Nigeria and Serbia. (News24)
South Africa’s long-awaited economic reforms have begun to improve the country’s outlook, but the age-old problems of political uncertainty and a failing power system still pose significant risks. (CNBC Africa)
Africa is a diverse continent with natural and human resources capable of creating inclusive growth and eradicating poverty. The continent now has the world's most extensive free trade area, with a market of 1.2 billion people. Africa seeks an entirely new economic growth path, capitalizing on the potential of its people and resources. (All Africa News)
International News
South Korea's military said it scrambled fighter jets as two Chinese and six Russian warplanes entered its air defense zone on Wednesday (Reuters)
Asian stocks ended mostly higher on Wednesday despite lingering worries about the Chinese economy and ahead of the release of the latest Fed meeting minutes later in the day. Regional gains were capped by rising COVID-19 infections in China. (RTT News)
Bill was standing with a group of people mostly in their 20s when a young woman started to lead the chanting. “Give me liberty, or give me death,” she shouted, her voice cracking at one point. (Aljazeera News)
The Bank of Namibia Monetary Policy Committee (MPC) is scheduled to make its last announcement for 2022 on the interest rate decision tomorrow, the 30th of November 2022.
The committee increased the repo rate by 75 basis points to 6.25% in their last meeting held in October 2022. The MPC was of the view that the rate will continue safeguarding the peg arrangement and thus anchoring inflation expectations while meeting the country’s international financial obligations. South Africa’s reserve bank increased its repo rate by 75 basis points in their last meeting held last week, on the 24th of November 2022.
The Bank of Namibia MPC increased the repo rate by 250 basis points year to date while the South African Reserve Bank increased by 300 basis points
The repo rate currently stands at 6.25%. The Bank of Namibia’s MPC indicated that the repo rate remained supportive of credit demand in the near term, and they were of the view that hiking the rate will be more consistent with the current view of inflation risks.
Although inflation has shown signs of slowing down over the past 3 months ever since peaking at 7.3% in August 2022, the current inflation levels still remain significantly too high, with average annual inflation for 2022(January to October) standing at 5.9% compared to 3.6% recorded during the period in 2021.
Our outlook is that the MPC could increase the repo rate by 75 basis points following South Africa’s path. The decision will continue to contain the elevated global and domestic inflationary pressures, and the fragile economic recovery and maintain the need to safeguard the currency peg while meeting the country’s international financial obligations.
Figure 1: Repo Rates and Inflation Rates, Namibia vs. South Africa (January - November 2022)
A total of N$7,710,633.35 worth of shares was traded on the NSX on Friday with about N$ 669,252 worth of shares belonging to Anglo-American and N$ 182,000 from Paratus Namibia Holdings Ltd on the home front. No ETFs were traded on Friday
HEI Market Commentary
From the trading activity that took place:
Anglo-American’s performance increased as market participants engage in the company stock causing it to rise by 0.4%
Paratus Namibia Holdings shares were traded by market participants, resulting in no change in share price
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
46.01
46.01
0.00%
Nictus Holdings
NHL
1.75
1.75
0.00%
Capricorn
CGP
13.02
13.02
0.00%
First Rand Namibia
FNB
31.51
31.51
0.00%
Standard Bank Namibia
SNO
4.39
4.20
-4.33%
Oryx Limited
ORY
10.24
10.24
0.00%
Letshego
LHN
3.02
3.02
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
13.00
13.00
0.00%
Mobile Telecommunication Company
MOC
7.03
7.02
-0.14%
Alpha Namibia Industries Renewable Power Limited
ANE
9.00
9.00
0.00%
Table 2: Primary listed Trades
Name
South African Dual Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
661.53
663.99
0.37%
B2Gold Corporation
B2G
60.12
60.98
1.43%
Oceana Group Limited
OCG
59.54
59.48
-0.10%
Mediclinic International Plc
MEP
101.89
102.00
0.11%
Truworths
TRW
56.51
56.25
-0.46%
Nedbank Group Limited
NBK
224.67
227.23
1.14%
Standard Bank Group
SNB
180.95
180.90
-0.03%
Shoprite Holdings
SRH
251.28
252.10
0.33%
FirstRand Limited
FST
66.37
67.09
1.08%
Momentum Metropolitan Holdings
MMT
18.02
18.05
0.17%
Old Mutual Ltd
OMM
11.20
11.04
-1.43%
Sanlam Limited
SLA
55.50
55.29
-0.38%
Santam Limited
SNM
262.46
265.18
1.04%
Vukile Property Fund Limited
VKN
14.51
14.66
1.03%
Investec Limited
IVD
101.90
103.40
1.47%
PSG Konsult Limited
KFS
11.87
12.04
1.43%
Table 3: Dual-Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
278.53
279.77
0.45%
New Gold Palladium ETF
NGNPLD
311.44
304.03
-2.38%
New Gold Platinum ETF N
NGNPLT
162.19
162.59
0.25%
New Funds S&P NAM Bond
NFNAMA
17.74
17.61
-0.73%
Table 4: ETFs
Exchange Rates @ 08:00
USD/NAD
17.15
EUR/NAD
17.77
GBP/NAD
20.68
EUR/GBP
0.85
EUR/USD
1.03
GBP/USD
1.21
AUD/USD
0.66
USD/JPY
138.33
Commodities @ 08:00
Gold
1,751.55
Silver
21.28
Platinum
985.20
Palladium
1,853.28
WTI
74.21
Brent
81.46
Table 5: Exchange Rates and Commodities
Local News
More than 400 employees from Gendev Fishing Group and Princess Brand Processors have called on the fisheries minister to allocate quotas or allow fishing within the 200-metre contour line. (Sun Newspaper)
The technical committee working on Namibia and Botswana’s bid for the 2027 Africa Cup of Nations (Afcon) yesterday moved swiftly to calm growing perceptions that the bid has become a stalled project, announcing a raft of new developments around the initiative. (New Era Newspaper)
The Confederation of Namibian Fishing Associations (CNFA) has distanced itself from the horse mackerel sector's fight to be allowed to fish in a seabed area that has been protected for the past 25 years. (The Namibian)
Sub-Sahara News
On Friday, Transnet Freight Rail (TFR) announced that only two companies had participated in its much-anticipated auction of slots to private players, the company's first foray into allowing private participation on the rail network. (News24)
Malawi’s Anti-Corruption Bureau has arrested and charged the country’s Vice President Saulos Klaus Chilima over graft allegations, it said on Friday, following months of investigation over his conduct. (CNBC Africa)
Africa is a diverse continent with natural and human resources capable of creating inclusive growth and eradicating poverty. The continent now has the world's most extensive free trade area, with a market of 1.2 billion people. Africa seeks an entirely new economic growth path, capitalizing on the potential of its people and resources. (All Africa News)
International News
The Pentagon is considering a Boeing proposal to supply Ukraine with cheap, small precision bombs fitted onto abundantly available rockets, allowing Kyiv to strike far behind Russian lines as the West struggles to meet the demand for more arms. (Reuters)
Asian stocks fell broadly on Monday, as China battled a record number of COVID-19 cases, and Russian officials in control of Europe's largest nuclear site accused Kyiv of shelling the area. (RTT News)
Ukraine’s President Volodymyr Zelenskyy has warned of new Russian missile attacks on his country, urging defense forces and citizens to be prepared to withstand a new week of strain on the power grid. (Aljazeera News)
The New York Stock Exchange (NYSE) and the NASDAQ stock markets in the U.S. were closed for the Thanksgiving holiday, thus resulting in lower Treasury yields and a softer US dollar.
The overall bourse of the Namibian Stock Exchange (NSX), closed in negative territory at -0.07% on the backdrop of real estate and financial sectors, which dropped by 0.26% and 0.90%, respectively.
Bond yields in Namibia are continuously on a downward trajectory, as SARBs increased the repo rate to 7.00% yesterday, however, Namibia still remains behind the curve, and most economists anticipate an increase in repo rate on 7 December 2022 at the next Bank of Namibia's upcoming meeting.
Despite the JSE bourse closing at 0.32%, in South Africa, the bond yields are following the same trend as the Namibian bond yields
Table 1. Namibia Government Bonds
Bonds
Coupon
Maturity
YTM (%)
YTM (%)
YTM (%)
DTDΔ
Prices
02-Nov-22
23-Nov-22
24-Nov-22
(bps)
24-Nov-22
GC23
8.85
15-Oct-23
8.71
8.79
8.75
-4.37
100.07
GC24
10.5
15-Oct-24
8.39
8.05
7.98
-7.20
104.32
GC25
8.5
15-Apr-25
8.74
8.79
8.72
-7.00
99.52
GC26
8.5
15-Apr-26
8.74
9.15
9.06
-8.68
98.37
GC27
8
15-Jan-27
9.55
9.28
9.21
-7.00
95.91
GC28
8.5
15-Oct-28
11.20
10.74
10.64
-10.35
90.80
GC30
8
15-Jan-30
11.58
11.12
11.04
-7.85
85.22
GC32
9
15-Apr-32
11.94
11.68
11.69
1.19
84.89
GC35
9.5
15-Jul-35
13.04
12.82
12.61
-20.61
80.54
GC37
9.5
15-Jul-37
13.18
13.04
12.87
-17.20
77.99
GC40
9.8
15-Oct-40
13.29
12.97
12.89
-8.25
78.56
GC43
10
15-Jul-43
14.27
14.10
13.92
-18.25
73.56
GC45
9.85
15-Jul-45
14.30
14.24
14.09
-14.81
71.25
GC48
10
15-Oct-48
14.68
14.57
14.37
-20.17
70.86
GC50
10.25
15-Jul-50
14.87
14.71
14.48
-22.33
71.34
Figure 1. Namibia Bond Yield: 02-Nov-2022 vs. 24-Nov-2022
Source: BoN & HEI Research
Figure 1. South African Bond Yields: 02-Nov-2022 vs. 24-Nov-2022
A total of N$4,461,757.39 worth of shares was traded on the NSX on Thursday with about N$ 695,931 worth of shares belonging Anglo-American and N$ 658,843 from FirstRand Namibia on the home front. No ETFs were traded on Thursday
HEI Market Commentary
From the trading activity that took place:
Anglo-American’s performance increased as market participants engage in the company stock causing it to rise by 0.7% at closing
FirstRand Namibia shares were traded by market participants, resulting in an increase of 1.6% at closing
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
46.00
46.01
0.02%
Nictus Holdings
NHL
1.75
1.75
0.00%
Capricorn
CGP
13.01
13.02
0.08%
First Rand Namibia
FNB
31.00
31.51
1.65%
Standard Bank Namibia
SNO
4.40
4.39
-0.23%
Oryx Limited
ORY
10.25
10.24
-0.10%
Letshego
LHN
3.00
3.02
0.67%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
13.00
13.00
0.00%
Mobile Telecommunication Company
MOC
7.02
7.03
0.14%
Alpha Namibia Industries Renewable Power Limited
ANE
9.00
9.00
0.00%
Table 2: Primary listed Trades
Name
South African Dual Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
657.25
661.53
0.65%
B2Gold Corporation
B2G
59.95
60.12
0.28%
Oceana Group Limited
OCG
57.81
59.54
2.99%
Mediclinic International Plc
MEP
101.17
101.89
0.71%
Truworths
TRW
57.53
56.51
-1.77%
Nedbank Group Limited
NBK
227.10
224.67
-1.07%
Standard Bank Group
SNB
181.69
180.95
-0.41%
Shoprite Holdings
SRH
249.23
251.28
0.82%
FirstRand Limited
FST
67.15
66.37
-1.16%
Momentum Metropolitan Holdings
MMT
18.23
18.02
-1.15%
Old Mutual Ltd
OMM
11.36
11.20
-1.41%
Sanlam Limited
SLA
56.23
55.50
-1.30%
Santam Limited
SNM
262.63
262.46
-0.06%
Vukile Property Fund Limited
VKN
14.55
14.51
-0.27%
Investec Limited
IVD
101.58
101.90
0.32%
PSG Konsult Limited
KFS
11.98
11.87
-0.92%
Table 3: Dual-Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
277.35
278.53
0.43%
New Gold Palladium ETF
NGNPLD
308.91
311.44
0.82%
New Gold Platinum ETF N
NGNPLT
161.65
162.19
0.33%
New Funds S&P NAM Bond
NFNAMA
17.57
17.74
0.97%
Table 4: ETFs
Exchange Rates @ 08:00
USD/NAD
17.01
EUR/NAD
17.72
GBP/NAD
20.61
EUR/GBP
0.86
EUR/USD
1.04
GBP/USD
1.21
AUD/USD
0.66
USD/JPY
138.51
Commodities @ 08:00
Gold
1,756.40
Silver
21.43
Platinum
993.20
Palladium
1,883.28
WTI
78.31
Brent
85.48
Table 5: Exchange Rates and Commodities
Local News
The South African Reserve Bank (SARB) yesterday announced a 75 basis points increase in the repo rate from 6.25% to 7.00% (Sun Newspaper)
Despite Okahandja municipality having publicly announced that it has employed a debt collector to enforce its credit policy, residents are up in arms, protesting the council never consulted them on the issue before enforcement (New Era Newspaper)
Dundee Precious Metals reported a throughput of 63 990 tonnes of complex concentrate smelted copper at Tsumeb during the third quarter of 2022 and generated N$513 million (US$39 million) in all its operations worldwide (The Namibian)
Sub-Sahara News
A court in Germany has announced that the accounting fraud trial of former Steinhoff CEO Markus Jooste will start early next year. (News24)
Ghana is at high risk of debt distress and has agreed on a debt management strategy with the International Monetary Fund (IMF), finance minister Ken Ofori-Atta said on Thursday. (CNBC Africa)
South African President, Cyril Ramphosa, has pleaded with the British monarch and government to facilitate a smooth re-admission of Zimbabwe into the Commonwealth and lift the sanctions imposed on the Southern African country. (All Africa News)
The U.S. stock markets, specifically the NYSE, and S&P 500 rose after meeting minutes from the US Federal Reserve showed that policymakers believed slower interest rate cuts could be more plausible going forward.
The Namibian Stock Exchange (NSX), closed in positive territory with the overall bourse sitting at 1.42% before the release of the Fed minutes last night at 21h00. This resulted in a decline in bond yields because, when stock markets rally, the bond market drops
In South Africa, the JSE bourse closed shy of 1% supported by the ICT and resource counters.
Yesterday, the weaker US dollar and expectations of aggressive interest rate hikes by the South African Reserve Bank (SARB) boosted the rand, which traded at R16.98/US$ at 21h30. The expectations did come to light as the SARB hiked their repo rate, causing the rand to trade as R17.03/US$.
Thus, causing bond yields to follow a similar trend then Namibia’s.
Table 1. Namibia Government Bonds
Bonds
Coupon
Maturity
YTM (%)
YTM (%)
YTM (%)
DTDΔ
Prices
02-Nov-22
22-Nov-22
23-Nov-22
(bps)
23-Nov-22
GC23
8.85
15-Oct-23
8.71
8.76
8.79
2.91
100.03
GC24
10.5
15-Oct-24
8.39
8.05
8.05
-0.10
104.20
GC25
8.5
15-Apr-25
8.74
8.80
8.79
-0.50
99.37
GC26
8.5
15-Apr-26
8.74
9.19
9.15
-3.82
98.12
GC27
8
15-Jan-27
9.55
9.28
9.28
-0.50
95.68
GC28
8.5
15-Oct-28
11.20
10.84
10.74
-9.81
90.38
GC30
8
15-Jan-30
11.58
11.17
11.12
-5.40
84.88
GC32
9
15-Apr-32
11.94
11.55
11.68
13.24
84.94
GC35
9.5
15-Jul-35
13.04
12.98
12.82
-16.43
79.45
GC37
9.5
15-Jul-37
13.18
13.25
13.04
-20.38
77.07
GC40
9.8
15-Oct-40
13.29
13.00
12.97
-2.63
78.10
GC43
10
15-Jul-43
14.27
14.29
14.10
-18.61
72.62
GC45
9.85
15-Jul-45
14.30
16.88
14.39
-248.75
69.77
GC48
10
15-Oct-48
14.68
14.75
14.57
-17.14
69.88
GC50
10.25
15-Jul-50
14.87
14.82
14.71
-11.33
70.25
Figure 1. Namibia Bond Yield: 02-Nov-2022 vs. 23-Nov-2022
Source: BoN & HEI Research
Figure 1. South African Bond Yields: 02-Nov-2022 vs. 23-Nov-2022
The annual inflation rate increased to 7.1% for October 2022 from 3.6% recorded during the same period last year. See figure 1
The annual inflation rate averaged 5.9% from January to October 2022 compared to an average of 3.5% recorded during the same period last year.
The main drivers of an increase in the annual inflation rate remain the transport, hotels, cafes and restaurants, furnishings household equipment, and routine maintenance of the house and food alcoholic beverages, and tobacco. See figure 2
On a monthly basis, inflation increased by 0.2%
Analysis
The annual inflation rate for the transport category increased to 17.8% from 10.7% recorded during the same period last year. This was influenced by an increase in the operation of personal transportation (fuel cost)
An increase in the annual inflation rate for hotels, cafes, and restaurants from 1.4% to 10.6% was driven by an upturn in demand for accommodation services. This is further supported by the increase in national occupancy rate.
The annual inflation rate for furnishings household equipment and routine maintenance of the house increased to 9.6% from 5.3%. This was attributed to an increase in the price levels of goods and services for routine household maintenance
Food and non-alcoholic beverages and tobacco which accounts for 16.5% of the inflation basket recorded an increase in the annual inflation rate of 9.1% from 5.2% recorded during the same period last year. This came as a result of an increase in the price levels of fruits, oils, and fats
We anticipate that the annual inflation rate for November 2022 to increase. This will be driven by an increase in the prices of food from the 14th of November 2022 and an increase in fuel prices (diesel) as announced by the Ministry of Mines and Energy.
