Business 7

SAA to expand flights between Windhoek, Joburg South African Airways (SAA) will start a third daily frequency connecting Windhoek to Johannesburg from 27 October.  The new flight route, serviced by SAA’s modern A320 fleet, reflects the growing demand for connectivity between the well-established Johannesburg and Windhoek routes, supporting tourism, business collaborations and cultural exchange, the @Namibia Airports Company (NAC) said.  “With this increase in frequency, travellers will have enhanced flexibility in planning their journeys, making it easier to explore the natural beauty, rich heritage and diverse offerings of both destinations and countries,” it added. Daily services will depart Johannesburg ORT (JNB) and Hosea Kutako International Airport (WDH) according to the following schedule: Departure from Johannesburg ORT (JNB) Flight SA070 at 05:45 Flight SA074 at 09:05 Flight SA076 at 15:00 Departure from Windhoek Hosea Kutako International Airport (WDH) Flight SA071 at 08:30 Flight SA075 at 11:55 Flight SA077 at 17:45

Quotes in Market Watch today: “It costs a different amount to transport fuel by road, and it also costs a different amount to transport fuel by rail, so we are then weighting these two based on the volumes that are transported by these two various modes.” - Abednego Katuushii Ekandjo, Chief petroleum economist: Ministry of Mines and Energy - NAMIBIA NAM-MIC’s investment in affordable housing is more than just a financial commitment; it is a pledge to uplift the people of Namibia. - John Ndeutepo, CEO: @NAM-MIC Get your copy in Namibian Sun, Republikein & Allgemeine Zeitung

Nictus reports 64% profit jump Locally-listed Nictus Holdings Limited made an operating profit of about N$76.25 million for the year ended 30 June 2024, nearly 29.8 million more than the previous financial year. Revenue of nearly N$921.5 million was reported in Nictus’ financial results released on the Namibian Stock Exchange (NSX) today. According to Nictus, its furniture division “has seen remarkable growth, driven by increased consumer demand and effective marketing strategies”.  “We have expanded our product range and enhanced the customer experience, which has led to our being acknowledged as the market leader in this segment,” the group said. Commenting on the vehicle division, Nictus said: “The automotive sector had its own challenges, but looking back, they performed satisfactorily in a saturated market.” The tyre and automotive glass division also delivered strong results, benefiting from overall growth in the automotive industry.  Nictus said its property segment experienced steady growth, with strategic investments yielding positive returns.  The group’s insurance and finance segment showed noteworthy growth and resilience, with an expanding customer base and strong retention rates, Nictus said. 

‘Back-pay of income tax will hurt business’ Reimbursing workers for over-deducted income tax will hit businesses’ cash flow management and budgeting, employer representatives and labour unions say. Issuing a statement today, the Namibia Employers’ Federation (NEF), the Namibian Local Businesses Association (NALOBA), the National Union of Namibian Workers (NUNW) and the Trade Union Congress of Namibia (TUCNA) said the method to secure reimbursement to employees is an issue of “great concern”, “met with great trepidation”. Finance minister Iipumbu Shiimi recently issued a statement, “granting authority and directing employers to reimburse the PAYE over-deducted from employees between 1 March 2024 and 30 September 2024 by deducting the reimbursed PAYE from the monthly employee’s tax amount to be paid to NamRA between 1 October 2024 and 28 February 2025.” According to the employer representatives and labour unions: “In many instances, it will have financial implications, where the immediate impact of reimbursing employees for over-taxation and managing deductions from future income tax may pose challenges for businesses, particularly in terms of cash flow management and budgeting.  “Taking into consideration the financial, administrative and compliance implications, of particular concern is the fact that the government did not engage in consultations with relevant stakeholders before implementing these regulations, opting instead to communicate the changes solely through the media.  “It is likely to create difficulties, as employees’ expectations will have been raised due to the public announcement, without consideration of the implications. This can impact work relations.” #namibia #tax #incometax #business

Frothy half-year for NamBrew Locally-listed Namibia Breweries Ltd (NBL) reported net revenue of N$4.057 billion for the six months ended 30 June 2024, up N$669 million or 19.8% compared to the previous half-year. Releasing its interim results on the Namibian Stock Exchange (NSX), NamBrew attributed the higher revenue to “strong growth in the wine, cider and spirits portfolio, coupled with market share gains in beer”.  “NBL’s consumers remain under significant pressure due to high inflation and drought conditions, particularly in the northern parts of the country. This is despite healthy GDP growth for Namibia, spurred by oil and gas discoveries, which offers little direct benefit to consumers of NBL brands,” the group said.  “Amid these conditions, the Heineken integration started yielding operational and trade benefits, with NBL’s focus on the broader beverage portfolio, leading brands and channel investments gaining traction,” NamBrew said.

FirstRand Namibia reports 9% profit growth Locally-listed FirstRand Namibia this morning reported a net profit after tax of N$1.704 billion or the year ended 30 June 2024, about N$143 million or 9.1% more than its previous financial year. Considering the higher repo rate for the reporting period, net interest income grew by 14.3% to N$3.082 billion, FirstRand Namibia said in their results released on the Namibian Stock Exchange (NSX). “Key drivers of our net interest income (NII) were good average advances growth, strategic and agile pricing and the higher rate environment,” the group, with FNB Namibia as its flagship brand, said.  Non-interest revenue (NIR) continues to deliver strong growth, with investments made in previous years starting to materialise, FirstRand Namibia said.  “NIR increased by 10.8%, mostly driven by volume growth, as pricing for the year only increased between 4% and 6%.  “Other key contributions to NIR growth this year came from our insurance business, in line with our strategic initiative to diversify earnings streams, which saw growth of 15.9% compared to the previous year,” the group added. FirstRand Namibia declared a final ordinary dividend of 180.16 cents per share.

Capricorn reports nearly 10% profit growth Locally-listed Capricorn Group Limited this morning reported a profit after tax of N$1.74 billion for the year ended 30 June 2024, about N$160 million or 9.9% more than its previous financial year. “The results are attributed to excellent results and solid all-round performances across the Group’s portfolio of businesses, which includes the banking subsidiaries Bank Windhoek and Bank Gaborone, as well as Capricorn Asset Management (Pty) Ltd, Entrepo Group, Peo Finance and our associates,” group chief financial officer Johan Maass. Results released on the Namibian Stock Exchange (NSX) show Capricorn’s net interest income before impairment charges increased by 13.6% to N$3.1 billion. Interest income growth was driven by higher interest rates and a 7.5% year-on-year (y/y) growth in the loan book, the group said.  Non-interest income increased by 14.2%, largely attributable to a 12.6% increase in transaction-based fees, driven by increased transaction volumes, especially on digital channels. Capricorn declared a final dividend of 64 cents per ordinary share, which will be paid to shareholders on 18 October 2024.  Including the interim dividend of 48 cents per ordinary share, this represents a total dividend of 112 cents per ordinary share (2023: 100 cents). This is a 12.0% increase in the total dividend per share for 2023.

Price monster still retreating Average inflation last month dropped to its lowest level this year, coming in at 4.4%. In August 2023, the rate was 4.7%. Data released by the Namibia Statistics Agency (NSA) today shows average food inflation, however, rose to 5.1% - up from 4.6% in July. A year ago average food inflation was 10.2%. Transport inflation dropped from 6.7% in July to 6.1% last month. In August 2023, transport inflation was -2.2%. #namibia #inflation #costofliving #prices

EU and Namibia strengthen energy cooperation The European Union (EU) commissioner for energy Kadri Simson announced a 25 million euro (N$494.6 million) contribution to leverage infrastructure investments in support of Namibia’s green hydrogen agenda at the Global African Hydrogen Summit. Two partnership deals, the EU 'Get Transformed' project and the institutional partnership on quality infrastructure between Germany's Federal ministry for economic affairs and climate action and the Namibian ministry of industrialisation and trade on green hydrogen quality infrastructure, were also signed. In addition, support for the Namibia Green Hydrogen Programme by the government of the Netherlands was also announced. Read the full report here: https://q.my.na/CELT #namibia #greenenergy #greenhydrogen #eu #climatechange

Oryx expects bumper profit Locally-listed Oryx Properties Limited, owner of, among other, Maerua Mall in Windhoek and Dunes Mall in Walvis Bay, expects its profit for the year ended 30 June 2024 to be more than 30% higher than its previous book-year. Headline earnings and distributable income are anticipated to be between 10% and 30% higher, Oryx said in a trading statement on the Namibian Stock Exchange (NSX). Distribution per linked unit, however, is expected to be less than 10% lower than the previous period as a result of the higher number of linked units in issue. Oryx’s audited results for the year ended 30 June 2024 are expected to be published on or about 13 September. The property group is listed on the Local Index of the NSX.