Businesses Grow Cautious as Corporate Credit Slows in Namibia- ISSUE #51☕

Welcome to Today’s Issue | Relox Media

From policy shifts to tech milestones, today’s edition brings you sharp insights into Namibia’s evolving landscape:

 Tax-Free Housing Cap: Government moves to limit housing benefits at N$400,000.
 Ohorongo Cement Deal: Industry braces for change as Whale Rock takes over.
 Corporate Credit Cools: Business confidence dips as lending slows.
 Chrome Breaks Records: Google’s browser sets a new speed benchmark.
 Presidential Tribute: President Nandi-Ndaitwah honors Zambia’s Edgar Lungu.

Stay informed, stay ahead. #ReloxMedia

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BUSINESS & ECONOMY

Namibia Moves to Cap Tax-Free Housing Benefits at N$400,000

Windhoek, June 2025 — Namibia’s Ministry of Finance is proposing a new annual ceiling of N$400,000 on tax-free housing benefits, aiming to tighten loopholes and foster greater fairness in the country’s tax system for the 2025/26 financial year.

Closing Loopholes, Promoting Equity

The proposed cap is designed to address a longstanding gap: high-income earners have been able to reduce their tax liabilities by structuring large portions of their pay as housing allowances, much of which has remained untaxed. “It’s for fairness and equity of taxation. Otherwise, chief executives lower their tax liabilities through structuring fringe benefits like housing allowances to avoid paying Pay-As-You-Earn (Paye),” explained Oscar Capelao, deputy executive director at the Ministry of Finance.

Currently, only two-thirds of a housing allowance is taxed, making the benefit especially lucrative for top earners. Capelao noted, “The idea of fringe benefits structuring was to help lower end tax brackets but now it’s the top end enjoying most benefits.”

How the New Cap Would Work

If approved, the new policy would mean that only the first N$400,000 of a housing benefit will qualify for reduced tax treatment. Any amount above that threshold will be taxed in full, just like regular salary income. For example, an employee receiving a housing allowance of N$800,000 per year would see only half of that amount (the portion above the cap) subject to standard taxation.

The measure is part of a broader effort to widen the tax base and make Namibia’s tax system more attractive to investors.

Regional Context

Namibia’s move echoes similar reforms in the region. In 2014, South Africa introduced a comparable measure, exempting employer-provided housing from tax only for lower-income workers—those earning below R250,000 annually, with property values under R450,000, and no close connections to the employer.

What’s Next

The proposed policy still requires approval from the Cabinet subcommittee on legislation before it can take effect.

Bottom Line:
Namibia is tightening its tax rules on housing benefits, seeking to promote fairness and prevent high earners from exploiting loopholes. The N$400,000 cap is a targeted move to ensure the tax system works for all, not just the top earners—marking another step in the country’s ongoing tax reform journey.

Source: The Namibian

Ohorongo Cement’s Sale to Whale Rock: Surplus, Shrinking Exports Drive Industry Shake-Up

Namibia’s cement sector is bracing for major change. Ohorongo Cement, the country’s oldest producer, is set to be acquired by rival Whale Rock Cement, a move triggered by persistent oversupply, weak domestic demand, and tightening export markets.

Surplus and Stagnation: The Roots of the Deal

Namibia’s annual cement consumption has stagnated at around 600,000 tonnes—far below the installed production capacity of 2.6 million tonnes. This mismatch has created sustained oversupply, making the industry economically unsustainable, Ohorongo Managing Director Hans-Wilhelm Schütte revealed.

Despite abundant raw materials, Schütte warned that the current surplus threatens the long-term viability of operations.

Export Hopes Fade as Regional Barriers Rise

Export opportunities have narrowed sharply. Angola’s ongoing cement import ban has shut Namibia out for over five years, while Botswana will ban 50kg cement bag imports from August 2025. High electricity costs and long transport routes make exports to South Africa unviable.

Monopoly Fears and Market Realities

The deal will see Whale Rock Cement acquire Schwenk Namibia (Ohorongo’s parent), including its biomass energy subsidiary. With only two major players in the market, the Namibia Competition Commission (NaCC) has flagged concerns about reduced competition.

The commission’s inquiry is ongoing, with a final decision yet to be made.

Workforce Cuts and Industry Impact

Ohorongo has already halved its workforce—from over 410 to about 200—and shelved plans for SME support and a local packaging plant. Schütte warned that, without sufficient volumes, the company may be forced to import clinker, erasing 60% of local value addition.

Looking Ahead: Ownership and Oversight

The buyer, Whale Rock Cement, was chosen for its capital strength, cement expertise, and commitment to Namibia. Minority shareholders, including the Development Bank of Namibia, remain unchanged.

Schütte dismissed allegations of past market abuse, noting that Ohorongo’s prices tracked inflation and were benchmarked regionally. The company continues to meet Namibian and international quality standards.

Bottom Line

Namibia’s cement industry faces a defining moment. The Ohorongo-Whale Rock deal is a response to oversupply, shrinking exports, and policy uncertainty. While the merger could stabilize the sector, competition concerns remain under review. The outcome will shape jobs, investment, and the future of local manufacturing.

Source: The Brief

Businesses Grow Cautious as Corporate Credit Slows in Namibia

Corporate Borrowing Dips Amid Evolving Financial Landscape

Namibian businesses are treading carefully in the face of shifting financial conditions, with the latest data showing a slight slowdown in corporate credit growth. According to Simonis Storm Securities, total corporate credit edged down by N$7 million to N$49.5 billion in April, a modest dip that signals a more selective approach to borrowing.

Cautious Borrowing and Investment Trends

Analysts attribute this marginal decrease to firms navigating increasingly complex financial terrain. Most companies are still borrowing to invest in capital assets, but the pace has slowed. Instalment and leasing credit—key for purchasing vehicles and equipment—stood at N$6.5 billion. While this figure is marginally lower than the previous month, it underscores ongoing activity in transport, logistics, and energy sectors.

“Businesses continue to invest in vehicles, machinery, and equipment, a sign of long-term confidence in their operational needs despite broader macroeconomic uncertainty,” the Simonis Storm report notes.

Selective Credit Uptake and Sectoral Impact

Other loans and advances remained steady at N$20 billion, with slower growth largely due to repayments and more selective borrowing. The effect is most visible in manufacturing and services, where some projects are progressing at a more measured pace.

Overdraft facilities also saw a notable decline, dropping by N$830 million to N$9.6 billion. This likely reflects companies drawing down on pre-approved credit lines to cover short-term cash flow needs, particularly in inventory-heavy or seasonally active sectors.

Shift Away from Long-term Property Investments

Mortgage lending recorded a further drop, with total outstanding loans falling to N$13.2 billion. Analysts say this marks a retreat from long-term property investments, as corporations increasingly favour agile, asset-light models in response to elevated building costs and evolving workspace strategies.

Outlook: Steady Momentum Amid Cautious Optimism

Despite the slower pace, analysts remain optimistic. Credit momentum is expected to hold steady through 2025, supported by healthy liquidity and relatively favourable borrowing conditions. Investment appetite persists in key sectors, with businesses focusing on productivity-enhancing upgrades rather than speculative expansion.

“With liquidity still healthy and borrowing conditions relatively supportive, we expect credit momentum to remain steady as we move further into 2025,” Simonis Storm concludes.

Bottom Line:
Namibian businesses are showing greater caution in borrowing, reflecting a shift toward selective investment and operational efficiency. While corporate credit growth has slowed, the landscape remains stable, with firms prioritizing strategic upgrades and prudent financial management as they navigate an evolving economic environment

Source: The Namibian

TECH

Chrome Sets New Speed Record in Browser Performance

Google Chrome has achieved its highest-ever score on the Speedometer benchmark test, which measures browser responsiveness across various tasks like HTML parsing, JavaScript processing, DOM manipulation, CSS application, layout calculation, and pixel rendering. Tested on an Apple MacBook Pro M4 running macOS 15, Chrome scored 52.35, marking a 10% performance improvement since August 2024[Source: Revolox Media].

What Makes Chrome Faster?

Google attributes this speed boost to heavy optimizations in memory layouts across DOM, CSS, layout, and painting components. The Blink engine now reduces unnecessary memory churn by keeping state aligned with access patterns, maximizing CPU cache use. Additionally, Chrome expanded its use of Oilpan garbage collection to pack memory more efficiently, replacing malloc in some areas, which speeds up performance[Source: Revolox Media].

Chrome Saves Users Time

Google claims that this performance gain translates into significant time savings for users. For those using Chrome about 10 minutes daily, the collective saved time amounts to an estimated 58 million hours. While somewhat exaggerated, this highlights the browser’s efficiency improvements[Source: Revolox Media].

Chrome’s Ongoing Challenges

Despite its speed, Chrome faces criticism for being a memory hog compared to competitors. Google has tried to address this with machine learning techniques to optimize RAM usage per session. However, Chrome is not alone in the race for speed; Microsoft Edge recently announced significant performance improvements in its latest update[Source: Revolox Media].

Bottomline: Chrome continues to lead in browser speed benchmarks with its highest Speedometer score ever, thanks to deep memory and engine optimizations. Yet, memory consumption remains a concern, keeping the competition lively as other browsers also push for better performance.

Source: The Namibian

SADC

President Nandi-Ndaitwah Pays Tribute to Former Zambian Leader Edgar Lungu

Namibia Mourns Loss of a Key Regional Ally

President Netumbo Nandi-Ndaitwah has expressed deep condolences following the passing of former Zambian President Edgar Lungu, recognizing his significant role in strengthening Namibia-Zambia relations over many years.

Strengthening Bilateral Ties

Having served as prime minister and deputy minister of international relations during Lungu’s tenure, Nandi-Ndaitwah highlighted his consistent efforts to deepen cooperation between the two neighboring countries. She noted that the Namibian people share a strong bond of friendship with the Zambian people, forged over decades.

A Nation in Grief

Lungu, who led Zambia from 2015 until his 2021 electoral defeat, died at 68. In her condolence message, Nandi-Ndaitwah assured Zambia of Namibia’s solidarity during this period of profound sorrow. “The passing on of former president Lungu is deeply felt by the Namibian people,” she said, affirming Namibia’s support for its sister republic in mourning.

Bottom Line:
President Nandi-Ndaitwah’s tribute underscores the enduring partnership and mutual respect between Namibia and Zambia, reflecting a shared commitment to regional unity and cooperation.

Source: The Namibian