Aliko Dangote Explores Investment Opportunities in Namibia’s Oil, Gas, and Phosphate Sectors - ISSUE #56☕

Good Morning. Welcome to your Friday edition. Here is what you need to know to wrap up the week.

Featured Updates:

• BoN Pushes Bank Margins: The Bank of Namibia urges banks to cut lending margins from 3.75% to 3.5%, matching CMA norms, to ease loan costs. Banks made N$14.5 billion in 2024 - time to comply!

• Dangote Eyes Namibia: Aliko Dangote met President Nandi-Ndaitwah to explore oil, gas, and phosphate investments, leveraging Namibia’s 2.6 billion-barrel Orange Basin finds. A big Friday boost!

• Borrowing Hits N$20 Billion: Domestic borrowing rose to N$20 billion for 2025/26 to repay a US$750 million Eurobond. With a 24% liquidity ratio, bonds are fully subscribed - fiscal confidence this week!

• GOtv Outpaces DStv: GOtv’s 17% subscriber growth (47,591) beat DStv’s 7% (114,659) in Q1 2025, driven by affordability. Postal services also surged 43% - a diverse Friday tech win!

• Midjourney’s AI Video Leap: Midjourney’s V1 model turns images into 5-second clips, competing with OpenAI’s Sora.

• Free Education by 2026: A task force is set to deliver a free tertiary education roadmap by August 2025, covering public institutions. With 35,000 students at UNAM/NUST, it’s a bold Friday plan!

Enjoy the read and have a blessed and productive weekend ahead! ☕

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BUSINESS & ECONOMY

Bank of Namibia Urges Commercial Banks to Align Lending Margins with CMA Norms

The Bank of Namibia (BoN) has called on commercial banks to reduce their prime lending margins from 3.75% to 3.5%, aligning with Common Monetary Area (CMA) standards observed by countries like South Africa and Lesotho, to lower borrowing costs for Namibian consumers.

Details of the Call for Alignment
BoN Governor Johannes !Gawaxab highlighted that Namibia’s 3.75% spread between the repo rate and prime lending rate exceeds the CMA’s typical 3.5% margin. “This move will address this anomaly and provide relief to consumers,” he said, noting that a 25-basis-point reduction could save Namibians with loans significant interest costs. The BoN has set a timeframe for banks to adjust, aiming to reduce the interest rate differential with South Africa and support orderly capital flows, crucial for maintaining the one-to-one peg between the Namibian dollar and the South African rand.

Impact on Consumers and Banks
The proposed margin reduction would lower borrowing costs for consumers, particularly for mortgages and vehicle loans, easing financial strain. In 2024, Namibia’s four major banks - Standard Bank Namibia, Bank Windhoek, First National Bank, and Nedbank Namibia, generated N$14.5 billion in revenue, up N$1.7 billion from 2023, indicating room for margin adjustments. However, banks have historically resisted such calls, citing operational costs and risk perceptions. The BoN may enforce compliance through measures like increased cash reserve requirements if banks fail to comply within the specified timeframe.

The Bottomline
The BoN’s push for commercial banks to align prime lending margins with CMA norms aims to ease consumer borrowing costs and support economic stability, though compliance remains uncertain given banks’ past resistance. Namibia’s tourism sector continues to drive growth, complementing these financial reforms to enhance the country’s economic resilience amid global uncertainties.

SOURCES: The Brief

Aliko Dangote Explores Investment Opportunities in Namibia’s Oil, Gas, and Phosphate Sectors

Africa’s richest man, Aliko Dangote, met with Namibian President Netumbo Nandi-Ndaitwah and Bank of Namibia Governor Johannes !Gawaxab in Windhoek yesterday to discuss investment opportunities in Namibia’s oil, gas, and phosphate industries, signaling a potential expansion of his conglomerate’s African footprint.

Investment Interests and Dangote Group’s Portfolio
During a courtesy visit at State House, Dangote expressed keen interest in Namibia’s oil, gas, and phosphate sectors, aligning with his company’s strategy to bolster Africa’s industrial capacity. “We are present in more than 12 African countries with major investments in cement, fertilizer, and our newly completed 650,000-barrel-per-day oil refinery, the largest in the world,” he said, highlighting the Dangote Group’s operations in Nigeria, including a 3-million-tonne fertilizer plant (the world’s second-largest by output) and production of carbon black, LPG, and sulphate chips. He also noted plans to expand fertilizer production by leveraging phosphate resources across Africa, with Namibia’s phosphate deposits being a potential target.

President Nandi-Ndaitwah welcomed the initiative, stating, “Meeting successful African entrepreneurs like yourself serves as a true inspiration for young Africans… Please consider Namibia your home away from home.” She emphasized the role of intra-African investment in driving Namibia’s economic growth.

Dangote’s meeting with Governor !Gawaxab focused on public-private partnerships and continental investment, described by the Bank of Namibia as a “cordial and constructive exchange.” A visit to the Port of Walvis Bay with Namport officials further explored logistics and trade opportunities, underscoring the port’s role in regional growth.

Dangote Group’s Track Record
Founded by Aliko Dangote, the Dangote Group is West Africa’s largest conglomerate, operating in cement, sugar, salt refining, food, beverages, and logistics across 10 African countries, employing over 30,000 people and generating US$4.1 billion in revenue in 2017. Its flagship Dangote Refinery in Lekki, Nigeria, commissioned in May 2023, processes 650,000 barrels per day, aiming to meet Nigeria’s fuel needs and export petrol, diesel, and jet fuel. The group’s fertilizer plant supports agricultural self-sufficiency, exporting urea to global markets.

Namibia’s Investment Appeal
Namibia’s oil and gas sector is gaining momentum, with recent discoveries in the Orange Basin by TotalEnergies and Shell, estimated at 2.6 billion barrels of recoverable oil. The country’s phosphate deposits, particularly in the Erongo Region, offer potential for fertilizer production, aligning with Dangote’s expertise. However, challenges like regulatory hurdles and infrastructure gaps may require robust public-private collaboration, as discussed with Namibian officials.

The Bottom Line
Aliko Dangote’s interest in Namibia’s oil, gas, and phosphate sectors could drive significant economic impact, building on his success with Africa’s largest refinery and fertilizer plant. His visit signals confidence in Namibia’s potential as an investment hub, though navigating regulatory and supply challenges will be key. As Dangote emphasized, “Africa can only be developed by Africans,” aligning his vision with Namibia’s growth ambitions.

SOURCES: The Brief

Namibia’s Domestic Borrowing Surges to N$20 Billion to Meet Debt Obligations

The Bank of Namibia (BoN) announced that the government’s domestic borrowing requirement for the 2025/26 fiscal year has risen to N$20 billion, up from N$15 billion the previous year, primarily to address upcoming debt repayments, including a US$750 million Eurobond due in October 2025.

Debt Repayment Driving Borrowing Needs
BoN Governor Johannes !Gawaxab clarified that the increase is not due to a larger budget deficit but rather the need to repay existing debts, including local bonds, foreign loans, and the maturing Eurobond. “The bulk of the increase in issuance is to cater for the repayment of existing debt,” he said. The government has accumulated US$468 million in a sinking fund to prepare for the Eurobond, with plans to add N$3 billion (approximately US$162 million) before maturity, leaving a US$120 million gap to be financed through domestic borrowing or other instruments.

Strong Investor Confidence and Liquidity
!Gawaxab reported that all planned government borrowing auctions have been fully subscribed with no shortfalls, though investors prefer shorter-term bonds. Namibian bonds remain attractive, pricing at spreads of less than 100 basis points above South African benchmarks, well below historical levels. The banking sector’s liquidity ratio of 24% - far exceeding the 10% requirement—supports the government’s borrowing plans, with !Gawaxab noting, “We don’t see any major challenges in raising the rest of the borrowing requirement.”

Fiscal and Economic Context
Namibia’s public debt is projected to reach N$168 billion by FY2025/26 (62% of GDP), driven by debt service costs of N$13.7 billion and the Eurobond repayment. The fiscal deficit is expected to widen to 3.0% of GDP in FY2024/25, but settling the Eurobond could lower the debt-to-GDP ratio to around 56%, below the 60% international benchmark, reducing interest payments and exchange rate risks. However, reliance on domestic borrowing - projected at N$17.3 billion in FY2025/26 - poses liquidity risks if investor confidence wanes, as seen in a recent undersubscribed bond auction.

Namibian Tourism Packages
Namibia’s tourism sector, contributing 14.5% to GDP and over 18% to employment, remains a key economic driver, supporting fiscal stability. 2025-2026 packages include:

• Safari and Wildlife Tours: 7-10 day tours to Etosha, Sossusvlei, and Damaraland, starting at N$20,000 per person for camping/lodge combos.

• Luxury and Ecotourism: Lodges like Zannier Hotels Omaanda offer stargazing in NamibRand’s dark-sky reserves, from N$5,000 per night.

• Adventure and Cultural Experiences: Swakopmund’s sandboarding and Twyfelfontein’s UNESCO rock art in 10-day tours costing N$35,000+ per person.
  Travelers should book 50 days in advance, use 4x4 vehicles, and carry Namibian dollars (N$), pegged to the rand. Visas on arrival (N$1,600 for adults) are required as of April 2025.

The Bottom Line
Namibia’s domestic borrowing increase to N$20 billion reflects proactive debt management, with a robust sinking fund and strong banking liquidity ensuring the US$750 million Eurobond repayment in October 2025 is on track. While fiscal pressures persist, tourism’s economic contributions and investor confidence in Namibian bonds provide stability. Strategic refinancing and fiscal consolidation will be critical to sustaining this balance amid global uncertainties.

SOURCES: The Brief

TECH

GOtv Surges Ahead of DStv in Namibia’s Pay-TV Subscription Growth

GOtv outpaced DStv in subscription growth in Namibia during Q1 2025, driven by consumer demand for affordable television content, according to the Communications Regulatory Authority of Namibia (Cran) telecommunications sector performance review.

Subscription Growth and Market Dynamics
Overall pay-TV subscriptions grew by 10% in the first quarter, largely fueled by GOtv’s 17% increase to 47,591 subscribers, compared to DStv’s 7% rise to 114,659 subscribers. Both platforms are owned by MultiChoice. GOtv’s growth reflects its strong appeal in lower-to-middle-income segments, where its terrestrial service and budget-friendly packages—such as GOtv Max (N$215/month) and GOtv Smallie—resonate. DStv, despite holding the largest market share, has faced subscriber declines since 2023 due to higher subscription costs and competition from streaming platforms like Netflix and Showmax.

Revenue and Advertising Challenges
Broadcasting revenue faced headwinds, with advertising revenue dropping 20% in Q1 2025, contributing just 9% to the sector’s total income. The report noted, “This highlights ongoing volatility in this revenue stream,” as advertisers shift budgets to digital platforms. MultiChoice’s cost-reduction efforts aim to save N$2 billion in 2025, but price hikes, such as a 20% increase effective April 1, 2025 (e.g., DStv Premium rising from N$985 to N$1,045), have strained subscriber retention.

Postal Services See Unexpected Revival
Surprisingly, traditional postal services saw a resurgence, with postbox usage rising 43% (occupancy rate reaching 43%) and private bag usage increasing 51%. This growth persists despite organizations adopting electronic communication, indicating sustained demand for physical postal services.

The Bottom Line
GOtv’s 17% subscription growth in Q1 2025 highlights its affordability-driven appeal in Namibia’s pay-TV market, outpacing DStv’s 7% growth amid pricing pressures and streaming competition. The broadcasting sector faces revenue challenges, with a 20% advertising decline, while traditional postal services see unexpected demand. Namibia’s tourism sector continues to thrive, complementing digital and traditional services to drive economic growth.

SOURCES: The Namibian

Midjourney Launches V1 AI Video Generation Model, Expanding Creative Horizons

Midjourney, a leading AI image generation startup, unveiled its first AI video generation model, V1, on June 18, 2025, marking a significant shift from static images to dynamic multimedia content creation. This launch positions Midjourney in direct competition with established AI video models like OpenAI’s Sora, Runway’s Gen-4, Adobe’s Firefly, and Google’s Veo 3, while maintaining its signature focus on creative, artistic outputs.

V1 Features and Functionality
V1 is an image-to-video model that transforms a user-uploaded or Midjourney-generated image into four five-second video clips at 24fps and 480p resolution, with support for any aspect ratio. Users can access V1 exclusively through Discord or Midjourney’s web platform at launch. Key customization options include:

• Animation Modes: Automatic mode applies random motion, while manual mode allows users to define specific animations via text prompts.

• Motion Settings: “Low motion” suits ambient scenes with subtle movement (e.g., blinking characters or light breezes), while “high motion” supports dynamic camera and subject action, though it may introduce visual errors.

• Video Extensions: Each clip can be extended by four seconds up to four times, enabling videos up to 21 seconds long.

Early demos showcase V1’s “otherworldly” aesthetic, akin to Midjourney’s dreamlike image style, rather than hyperrealistic outputs, appealing to artists and creators. Initial user feedback, such as from Phi Hoang (@apostraphi), praises V1’s quality, with comments like “surpassing all my expectations.”

Pricing and Accessibility
Video generation costs eight times more than image generation, consuming monthly credits faster. Pricing tiers include:

• Basic Plan: $10/month, offering limited video generations.

• Pro Plan: $60/month, with unlimited video generations in “Relax” mode (slower processing).

• Mega Plan: $120/month, also with unlimited “Relax” mode generations.

Midjourney claims V1’s pricing is “25 times cheaper” than competitors, with 20 clips costing ~$4 compared to $3 per video on Google’s Veo. The company plans to reassess pricing within a month to balance affordability and computational costs.

Strategic Vision and Future Plans
CEO David Holz described V1 as a “stepping stone” toward Midjourney’s ambitious goal of developing AI models for real-time open-world simulations. Future roadmap includes:

• 3D Rendering Models: Enabling spatial navigation in generated environments.

• Real-Time Models: Supporting interactive, instantaneous content creation.

Holz emphasized that V1 prioritizes creative storytelling over commercial applications like Hollywood B-roll or advertising, aligning with Midjourney’s 21 million-strong user base of artists and hobbyists.

Legal Challenges
The launch follows a June 11, 2025, lawsuit from Disney and Universal, alleging that Midjourney’s AI image models, trained on copyrighted works, generate images of characters like Homer Simpson and Darth Vader. This legal scrutiny, also faced by competitors, reflects broader industry tensions over AI training data and creative displacement fears. Midjourney positions itself as a creativity-driven platform but cannot fully sidestep these controversies.

The Bottom Line
Midjourney’s V1 launch introduces a creative, affordable AI video tool that transforms images into short, artistic clips, setting it apart in a competitive market. While its surreal aesthetic and user-friendly controls excite creators, legal challenges and pricing adjustments loom. As Namibia’s tourism sector thrives, tools like V1 could enhance global promotion, blending technology with cultural storytelling to drive economic growth.

SOURCES: TechCrunch

EDUCATION

Namibia Sets August 2025 Deadline for Free Tertiary Education Roadmap

The Namibian government has launched the planning phase for free tertiary education in public institutions, with a task force mandated to finalize a national roadmap by August 2025, as announced by Deputy Minister of Education, Innovation, Youth, Sports, Arts and Culture, Dino Ballotti, during the task force’s inaugural meeting in Windhoek on June 18, 2025.

Task Force Mandate and Approach
Speaking on behalf of Minister Sanet Steenkamp, Ballotti emphasized the urgency of the task force’s work, urging weekly meetings to deliver recommendations to Cabinet by the deadline. Comprising representatives from public universities, regulatory bodies, and financial institutions, the task force is tasked with crafting a practical, sustainable model for free higher education, following President Netumbo Nandi-Ndaitwah’s commitment to eliminate tuition and registration fees at public tertiary institutions, as outlined in her recent State of the Nation Address.

Ballotti stressed stakeholder collaboration, fiscal responsibility, and transparent dialogue, proposing phased funding models—such as prioritizing high-demand courses—and a “funding follows the student” approach to include private institution students in future phases. Non-tuition costs like accommodation, meals, and transport will remain student responsibilities for now, though these may be addressed later. The task force must also draft a uniform press statement to clarify the policy’s scope for students and parents, ensuring transparency.

Context and Challenges
Namibia’s tertiary education sector faces significant funding constraints, with public institutions like the University of Namibia (UNAM) and Namibia University of Science and Technology (NUST) serving over 35,000 students but struggling with infrastructure and staff shortages. The Namibia Students Financial Assistance Fund (NSFAF) supported 14,131 students with N$1.3 billion in 2024, but demand exceeds supply. Free education could increase enrollment, potentially straining resources further, necessitating innovative funding models like public-private partnerships or reallocation of the N$561 million agri-infrastructure budget announced in April 2025.

The Bottom Line
Namibia’s August 2025 deadline for a free tertiary education roadmap reflects a bold commitment to accessible higher education, but fiscal and logistical challenges loom. The task force’s collaborative, phased approach aims to ensure sustainability, while tourism continues to drive economic growth, supporting broader national development goals. Transparent communication will be critical to managing public expectations as this transformative policy takes shape.

SOURCES: The Brief