Headlines
Development Bank limits participation in equities
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- Nyasha Francis Nyaungwa
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The Development Bank of Namibia(DBN) says it has made a conscious decision to limit its participation in the equities market to 10% of the bank’s total investment portfolio.
Acting CEO, Martin Inkumbi said although the bank invests in equities of a strategic nature besides the loans it gives to SMEs and other corporate clients, a decision was taken by the bank’s management to limit its exposure in the equities market for strategic reasons. In line with the policy, 93% of the bank’s total investments are currently in loans and 7% in equity.
Inkumbi said the decision was taken due to the “small” nature of the bank’s balance sheet which stands at around N$2 billion, and also with one eye on the possible changes to the way the bank is capitalised.
He said: “Our strategy is that: Of our total investment, 90% should be in loans then 10% can be equity. There are reasons for splitting it that way at the moment. More so because of the balance sheet of the bank. With equity you are in there for a long term; there is no cash flow coming into the bank for some time. They [equities] also have a very high risk in the sense that you never know whether that business will succeed or not. We are also at a stage were we are positioning ourselves as a bank to be able to raise money on the market in the near future when the treasury says, well we have capitalised you enough, now run on your own.”
Inkumbi pointed out that in the event that funding from the treasury stops and the bank has to raise money on the market or borrow money from institutional investors, it was imperative for the bank to have a balance sheet that is attractive. “They [investors] look at your balance sheet and say: are you having performing assets, are you having investments that are bringing you returns that are predictable and so on?”
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Communications regulator knows how to party
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- Waldo
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The Communications Regulatory Authority of Namibia (CRAN) last weekend celebrated its second birthday with a glamorous ball at Country Club Resort.The event also saw the unveiling of CRAN’s new consumer protection campaign, the National Consumer Advocacy and Protection Campaign which was launched on 6 May 2013 and forms part of CRAN’s internal mandate.In its efforts to ensure that consumers receive the full benefit of competitive electronic communication services and are protected from any exploitation or abuse, the Regulator has implemented a streamlined complaints handling system in accordance with the Act. The Regulator also issued telecommunications and broadcasting service licences and spectrum licences to various service providers. Seen here are the licensees with Lazarus Jacobs, Chairperson of the Board of Directors of CRAN and Stanley Shanapinda, CEO of CRAN. (Photograph by Victoria Ashipala)
Power cuts coming
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- Nyasha Francis Nyaungwa
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Power utility, NamPower has warned of the possibility of load shedding this winter after main supplier, Eskom refused to give the country a guarantee for continued supply of electricity.
Managing Director, Paulinus Shilamba said on Tuesday that in the absence of a guaranteed import from Eskom during this winter, it will be challenging for NamPower to keep the lights on. He appealed to electricity consumers to help mitigate the impact of power shortages by reducing electricity usage by a minimum of 10%, especially during peak hours.
He told the Economist that the possibility of load shedding can only be avoided if everyone (NamPower and electricity consumers) plays their part in contributing to a solution. Shilamba said: “It’s not a one-sided approach; we all need to work together as a country to contribute to the solution.”
State of grazing critical
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- Hilma Hashange
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A comprehensive inter-agency Emergency Food Security Assessment conducted throughout the country revealed that poor grazing conditions are threatening the entire national livestock herd as drought conditions worsen.
The assessment was read by President Hifikepunye Pohamba who stated that a considerable number of large and small stock have already died as a result of the drought and in most cases, Pohamba said the condition of livestock is already poor. According to the President, there is an urgent need to sell some livestock in order to prevent further losses. He said consideration should also be given for the culling of game by the Ministry of Environment and Tourism to prevent further loss of animals due to drought.
Namibia has been badly affected by drought due to poor rainfall after the first week of December last year. Unlike the floods, the drought situation is affecting the whole country. “My government is concerned about the destructive impact of the drought because by its nature, it is affecting both humans and livestock.
Namibia and Angola sign MoU
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- Lorato Khobetsi
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The Ministry of Agriculture, Water and Forestry has signed a Memorandum of Understanding (MoU) with Angola’s Ministry of Agriculture to help strengthen the collaborative effects between the two countries to boost the status of animal health and prevent the spread of animal diseases along the common border by vaccinating livestock on both sides of the border.
Speaking at the signing ceremony on Thursday, Agriculture Minister, John Mutorwa said transboundary animal diseases among many other constraints continue to hamstring the socio-economic development and progress of our people, especially so as it concerns their daily livelihoods, poverty eradication and the fight against hunger and disease.
“But the spreading and movement of diseases do neither respect international borders nor do they require official travelling documents or expensive mode of transport. The area bordering Angola which we in Namibia refer to as the Northern Communal Areas is home to over 60% of Namibians. In addition, the area also has over 1,5 billion cattle and 1,2 billion small stock, among other types of livestock. The potential value of these resources are in excess of N$10 billion,” he said.
