FINANCIAL INDICATORS: KEY INFLATION DRIVERS

FINANCIAL INDICATORS: KEY INFLATION DRIVERS Annual inflation rates per main category (%) – Feb 2025 Project 17% Electricity Tarriff Hike by NamPower: Implications Food and Non-Alcoholic Beverages (16.5% of the Consumer Basket): Inflation in the Food and Non-Alcoholic Beverages category edged up slightly to 5.9% year-on-year (y/y) in February 2025, compared to 5.8% y/y in […]

FINANCIAL INDICATORS

FINANCIAL INDICATORS The December 2024 Inflation Report analyses Namibia’s inflation dynamics, highlighting an environment of relative stability alongside emerging price pressures. Annual inflation increased to 3.4% in December from 3.0% in November, reflecting a marked deceleration from the 5.3% recorded in December 2023. The average inflation rate for 2024 was 4.2%, down from 5.9% in […]

BANK OF NAMIBIA EXPECTED TO CUT REPO RATE BY 25BPS

BANK OF NAMIBIA EXPECTED TO CUT REPO RATE BY 25BPS The Bank of Namibia (BoN) is expected to reduce the repo rate by 25 basis points (bps) next week at its first Monetary Policy Committee (MPC) meeting of the year, lowering it to 6.75%. The anticipated rate cut aligns with South Africa’s monetary policy easing […]

FINANCIAL INDICATORS

Private Sector Credit Extension (PSCE) maintained its upward trajectory for the third consecutive month, rising to 3.0% year-on-year (y/y) in September, compared to 2.1% at the end of August. This marks the second time this year that the PSCE rate has exceeded 3%, refecting sustained growth momentum since April 2023. During Q3 2024, annual credit […]

A MONTHLY WRAP-UP OF NEWS WORTH KNOWING

Namibia’s mining, financial, agricultural, and manufacturing sectors are advancing with new investments and government support. Over 600 new mining exploration applications reflect confidence in Namibia’s mineral wealth, although only 68 out of 162 active mining licenses are operational. The Bank of Namibia cut interest rates by 25 basis points to stimulate the economy amid low inflation. The Capricorn Foundation invested N$350,000 to train young Namibians in hospitality, aiding job creation. In manufacturing, the Trade Ministry is encouraging MSME participation in the beverage industry following AB InBev’s local production of Lion Lager. Additionally, Kadila Poultry Farming began operations, aiming to produce 400 tonnes of poultry monthly and create 350 jobs, reducing Namibia’s reliance on imports. These developments highlight progress across key sectors.

FINANCIAL INDICATORS

In August 2024, Namibia’s annual inflation rate decelerated to 4.4% y/y, down from 4.6% in July 2024 and 4.7% in August 2023, reaching its lowest level since November 2021. The key contributors to inflation were food and non-alcoholic beverages, housing and utilities, and transport. On a month-to-month basis, inflation rose by 0.3%, compared to 0.2% […]

NAVIGATING 2024

Global economic normalisation, electoral crossroads, and Namibia’s path to recovery With 2024 well underway, now seems to be an opportune time to look at what the year is expected to have in store in terms of the larger global economic outlook and what it means for Namibia. Looking at current forecasts for the year, it […]

THE YEAR IN REVIEW

Entering 2023, Namibia’s economic landscape was characterised by cautiously optimistic projections, underpinned by strong commodity performance, a surge in government spending, the expected validation of prior oil discoveries and the emerging interest in green hydrogen initiatives. However, as the year unfolded, the optimism was somewhat offset by the reality of an economy still grappling with […]