Namibia Misses 2025 Logistics Hub Target, Master Plan Gets an Overhaul- # ISSUE 34☕

Today’s Issue: Weekly Recap

In today’s edition, we bring you a concise recap of the key events and stories that shaped the week. Stay informed with our carefully curated highlights, covering the most important developments across business, technology, and personal growth.

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BUSINESS & ECONOMY

BoN Warns of Serious Fallout if U.S. Tariffs on Namibian Exports Persist Beyond AGOA Suspension

The Bank of Namibia (BoN) has raised alarms about the potential economic damage from renewed U.S. tariffs on Namibia’s key exports—marble, uranium, and diamonds—if the African Growth and Opportunity Act (AGOA) tariff suspension is not extended.

BoN Governor Johannes !Gawaxab emphasized that Namibia’s direct trade exposure to the U.S. is limited, but indirect effects could ripple through the economy. “Marble exports are especially vulnerable, with nearly 89% destined for the U.S. in 2024,” he noted, highlighting the sector’s heavy reliance on tariff-free access under AGOA.

Namibia’s exports, including uranium, rough and polished diamonds, fish, and wood, have benefited significantly from duty-free access to the U.S. market. However, changes in trade terms threaten to disrupt these gains. !Gawaxab warned that while exact GDP impacts are hard to quantify, sectors like diamonds, marble, and manufacturing face clear risks.

Trade data from 2022 to 2024 shows uranium exports rose from N$11.3 billion to N$15 billion before dipping slightly to N$14.5 billion. U.S. demand for uranium fell to zero in 2023 but rebounded to nearly 10% in 2024. Marble exports grew steadily, with U.S. market share climbing from 62% to 89%. Rough diamond exports peaked at N$17.7 billion in 2023 but dropped to N$11.9 billion in 2024, with minimal U.S. exposure. Polished diamonds maintained a larger U.S. share, rising to 12.4% in 2024.

BoN also highlighted regional risks through the Southern African Customs Union (SACU). A South African simulation showed that losing AGOA benefits could shrink GDP by 0.7%, reducing shared revenues for Namibia and other SACU members.

Inflation forecasts have been revised upward to 4.2% for 2025, driven by imported inflation and global trade uncertainties. !Gawaxab cautioned that indirect effects—particularly on the diamond sector—could be significant amid declining global demand.

The next 90 days are critical as Namibia monitors global trade developments and prepares for ongoing uncertainty. The 21% tariff increase, announced by U.S. President Donald Trump, aims to protect U.S. industries and address trade imbalances but risks raising costs for American consumers and straining Namibia’s export-driven economy.

Bottom line:

While Namibia’s direct exposure to U.S. tariffs is limited, the looming loss of AGOA benefits threatens to disrupt key export sectors and regional economic stability, demanding urgent diplomatic and economic responses.

Source: The Brief

Namibia Misses 2025 Logistics Hub Target, Master Plan Gets an Overhaul

Namibia’s ambition to become southern Africa’s logistics powerhouse by 2025 has hit a speed bump. The country has fallen short of the Fourth National Development Plan (NDP4) target to transform itself into a regional logistics hub, prompting officials to revisit and revise the master plan.

What Went Wrong?

The vision was bold: leverage Namibia’s prime location, world-class port at Walvis Bay, and well-developed corridors to connect landlocked neighbors to global markets. The original strategy mapped out a phased approach—expand by 2020, become a full-fledged regional distribution center by 2030. But as 2025 arrives, key pieces are still missing.

“Some of our railway infrastructure is lacking, and in the aviation space, there’s also a lot to be done,” admitted Gilbert Boois, Project Manager for the Logistics Hub at the Walvis Bay Corridor Group. While the port infrastructure has advanced—thanks to private concessions and a landlord model—rail, border facilities, and aviation remain underdeveloped.

The Volume Game

Namibia’s corridor network—three routes via Walvis Bay, one via Lüderitz—moves copper, fertilizers, and consumables across the region. But as Boois points out, “Logistics is essentially a volume game. It’s about how you drive volumes to achieve economies of scale.” Without integrated road, rail, and regulatory upgrades, Namibia struggles to capture the volumes needed to compete with regional giants like South Africa.

Governance and Accountability

The logistics hub project is government-led, with oversight from Cabinet, steering committees, and public-private working groups. The Walvis Bay Corridor Group coordinates implementation, but progress has lagged. “We are revising the master plan because there are quite a number of developments that are still pending,” Boois said.

New Forces, New Opportunities

Despite the setback, Namibia’s logistics sector is still poised for growth. The emerging oil and gas industry, a push for greener supply chains, and stronger regional collaboration are reshaping the landscape. Industry leaders agree: to unlock Namibia’s full logistics potential, the focus must shift from potential to execution—prioritizing investment, innovation, and strategic partnerships.

The Bottom Line

Namibia’s logistics hub dream is delayed, not derailed. With a revised master plan under review and a renewed focus on infrastructure, sustainability, and regional integration, the country still has a shot at becoming the SADC’s logistics gateway—if it can turn plans into action.

Source: The Brief

Bank of Namibia Holds Repo Rate at 6.75% as Inflation and Global Uncertainty Loom

The Bank of Namibia (BoN) kept the repo rate steady at 6.75% at this week’s Monetary Policy Committee (MPC) meeting, as inflationary pressures and global economic uncertainty continue to shape the central bank’s cautious stance.

Why the Hold?

• Regional Alignment:
  The BoN’s decision closely follows the South African Reserve Bank’s (SARB) move in March to maintain its own repo rate, preserving the 75-basis-point differential between the two countries. The BoN has signaled that narrowing this gap remains a medium-term goal, making further rate cuts unlikely for now.

• Inflation on the Rise:
  Namibia’s annual consumer price inflation (CPI) climbed from 3.0% in November to 4.2% in March, outpacing earlier forecasts. Food, alcohol, and transport costs are the main culprits, with further risks looming from potential electricity tariff hikes and persistent housing pressures.

• Economic Growth Outlook:
  While GDP growth for 2025 is projected above 4%, the recovery remains uneven. The secondary sector is outperforming expectations, but weak household incomes continue to limit private sector credit growth, which is still heavily skewed toward corporate lending.

• Reserves and External Risks:
  Foreign exchange reserves are robust at N$63 billion, covering 4.2 months of imports. However, analysts warn that trade disruptions, Eurobond maturities, and renewed global trade tensions - especially US tariffs on Namibian exports - could pressure reserves and stoke inflation.

Market Sentiment

Research firm High Economic Intelligence (HEI) notes that while most expected a rate hold, some market watchers saw a slim chance of a 25-basis-point hike to 7.0% if inflation shocks escalate. The imposition of new tariffs on Namibian goods and supply chain disruptions could weigh heavily on export earnings and domestic prices.

What’s Next?

With inflation risks and global volatility top of mind, the BoN maintained its repo rate at 6.75% - balancing support for the domestic economy with the need to safeguard currency stability and manage external shocks. The next MPC meeting in June will be closely watched for any shifts in this careful policy stance.

Source: BoN

Namibia’s Mining Royalties Hit N$ 5.96 Billion as Government Tightens Grip on Local Benefits

Namibia’s mining sector delivered a windfall for state coffers last year, with government collecting N$5.96 billion in royalties from mining companies. This milestone, revealed by Minister of Industries, Mines and Energy Natangwe Ithete at the ministry’s annual retreat, underscores a renewed drive to ensure Namibia gets its fair share from its mineral wealth.

Stricter Oversight, More Local Ownership

Over the past three years, 12 mining licences were issued—each subjected to rigorous compliance reviews. “This underscores the importance of mine site inspections, mineral export permit verifications, and audits to ensure the government receives its rightful share of benefits,” Ithete said.

The government is doubling down on local participation: “Any mineral rights granted must demonstrate that it is partly owned by Namibians. We have made it a condition to ensure local equity,” Ithete stressed. New draft mining laws are expected to cement requirements for at least 5% Namibian ownership in all mining companies, with further provisions for local beneficiation and mine closure responsibilities4.

Boosting SMEs and Electrification

Beyond mining, the ministry has rolled out support for micro, small, and medium enterprises (MSMEs) through the equipment aid scheme and the Industrial Upgrading and Modernisation Programme (IUMP). In the 2023/24 financial year, 390 applicants received equipment aid, and 20 enterprises benefited from the IUMP—together costing N$8.1 million to boost productivity and expansion.

Energy access is also on the rise:

• 1,956 households were electrified in 2023/24 via regional distributors and the City of Windhoek, thanks to a N$75.5 million investment.

• Between 2020 and 2025, 1,074 rural households were connected to the grid, with an additional 1,503 off-grid connections at a cost of N$55.6 million.

Forward-Looking Strategy

Executive Director Ben Nangombe confirmed the ministry’s new strategy is due by 30 April, aligning with Vision 2030 and the National Development Plan 6. The plan will target inequities in access to opportunities, power, and industrial premises, while addressing project management and regulatory bottlenecks.

The Bottom Line:
With record mining royalties, tougher compliance, and a push for local ownership, Namibia is tightening its grip on mineral benefits—while also investing in SMEs and rural electrification to drive inclusive growth.

Source: The Namibian

Namibia’s Deposit Guarantee Fund Grows to N$30.3 Million, Ready to Shield Depositors in Case of Bank Failure

Namibia’s financial safety net just got stronger. The Namibia Deposit Guarantee Fund—designed to protect ordinary depositors if a commercial bank collapses—has swelled to N$30.3 million, according to Florette Nakusera, head of the Namibia Deposit Guarantee Authority (NDGA), at the launch of the Authority’s latest annual report.

How It Works:
If a commercial bank fails, the Fund steps in to compensate affected depositors, with a coverage limit of N$25,000 per person. This means that more than 90% of Namibia’s current depositors are fully protected, ensuring that most Namibians would get their money back quickly and efficiently—even in the unlikely event of a banking crisis.

Building the Buffer:
The Fund’s growth—up by N$7.3 million from last year’s N$23 million—was driven by annual premiums paid by banks and a solid N$1.9 million in interest earnings for 2024. “The portfolio’s market value closed at N$30.3 million, reflecting an increase of N$7.3 million compared to the N$23.0 million. Institutions’ annual premiums contributed to the portfolio,” Nakusera explained.

Confidence and Stability:
The Deposit Guarantee Fund doesn’t just protect savings; it’s a bulwark against panic withdrawals and systemic risk. By assuring depositors that their funds are safe, the scheme helps maintain confidence in the banking sector—even if a bank runs into trouble.

Case in Point:
The recent closure of Trustco Bank Namibia put the system to the test. After its banking licence was revoked due to insolvency, Trustco transferred customer deposits to the Guardian Fund under the central bank, ensuring clients could reclaim their money.

Banking Sector Remains Solid:
Nakusera emphasized that, despite global headwinds, Namibia’s banking sector remains profitable, liquid, and well-capitalized. Capital adequacy and liquidity levels have rebounded to pre-pandemic highs, and the sector’s resilience continues to inspire confidence.

The Bottom Line:
With N$30.3 million in the pot and over 90% of depositors covered, Namibia’s Deposit Guarantee Fund stands as a robust backstop for savers—delivering both peace of mind and financial stability in uncertain times.

Source: BoN

TECH

Namibia Accelerates AI Adoption to Revolutionize Public Services and Drive Economic Growth

Namibia is rapidly embracing artificial intelligence (AI) to transform key sectors and enhance government service delivery, positioning itself as a regional leader in digital innovation. Experts highlight AI’s potential to boost efficiency, improve decision-making, and address long-standing challenges across health, education, agriculture, security, and social welfare.

AI in Action: Sector-by-Sector Impact

• Health: AI-powered predictive analytics can optimize resource allocation, forecast disease outbreaks, and improve rural medication distribution—mirroring Rwanda’s success with AI-driven drones.

• Education: Data-driven insights enable tailored learning materials, aiming to raise student performance and close educational gaps.

• Security: AI-enhanced surveillance and predictive policing promise to strengthen crime prevention and emergency response.

• Social Welfare: AI tools help monitor gender-based violence hotspots and streamline social grant applications, improving support for vulnerable groups.

• Revenue Collection: AI detects tax fraud, automates taxpayer services, and enhances procurement transparency, reducing bureaucratic delays.

• Agriculture: AI aids early disease detection, irrigation optimization, and livestock monitoring, crucial for Namibia’s arid environment and food security.

Challenges and Risks

Despite promising benefits, Namibia faces hurdles such as data gaps, ethical concerns, and potential job displacement. The World Economic Forum warns that 39% of core skills may become obsolete by 2030 due to AI automation, underscoring the need for proactive workforce reskilling.

Strategic Roadmap for AI Integration

To harness AI sustainably, Namibia plans to:

• Establish a National AI Task Force to guide policy and benchmark best practices.

• Launch pilot projects in health and agriculture, focusing initially on controlling Foot and Mouth Disease.

• Expand digital infrastructure, especially in rural areas, to ensure broad access to AI-enabled services.

• Foster partnerships with universities, NGOs, and international bodies to build local AI expertise and innovation capacity.

Looking Ahead

With coordinated efforts and ethical safeguards, AI stands to revolutionize Namibia’s public sector and economy, driving progress toward Vision 2030’s goals of industrialization and inclusive development.

Source: The Brief

Google Ruled to Hold Illegal Monopoly in Ad-Tech

A U.S. federal judge has ruled that Google illegally maintained monopoly power in key digital advertising technology markets, marking a major antitrust defeat for the tech giant and raising the possibility of significant changes to its business model.

Key Takeaways:

• Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia found that Google used a combination of acquisitions, contractual policies, and technological integration to dominate the publisher ad server and ad exchange markets.

• The court determined that Google unlawfully tied its publisher ad server (DoubleClick for Publishers, DFP) to its ad exchange (AdX), harming competition and locking in both advertisers and publishers1.

• The Department of Justice and 17 state attorneys general brought the case, arguing Google’s actions deprived rivals of the ability to compete, harmed publishers, and ultimately impacted consumers of online information.

• While the judge dismissed claims regarding monopoly power in the advertiser ad network market, Google was found liable for monopolizing the publisher ad server market, the ad exchange market, and for unlawful tying of these products1.

• The ruling is Google’s second major antitrust loss in less than a year and brings the company closer to a potential breakup, as the court will next consider remedies to address the violations.

What’s Next?

The court has ordered both parties to propose a schedule for further proceedings to determine potential remedies, which could include forcing Google to divest parts of its ad-tech business or change its business practices.

Why It Matters:

This decision could reshape the digital advertising landscape, affecting how online ads are bought and sold and potentially increasing competition in a market long dominated by Google.

UPDATES

Easter Travel Traffic Update for Namibian Roads

As Namibians prepare to travel for the Easter weekend, authorities are urging caution on the roads due to increased traffic and safety concerns.

Key Updates:

• The Motor Vehicle Accident Fund (MVA Fund) has called on all drivers to be extra cautious during the Easter long weekend. Last year, 37 crashes occurred during this period, resulting in 8 fatalities and 126 injuries, highlighting the need for vigilance.

• High-traffic routes expected to be congested include:

  • B1 through Windhoek (north and south directions)

  • B2 toward the coast

  • B6 from Khomas to Omaheke

  • B14 from Grootfontein to Gobabis.

• To improve safety, the MVA Fund, together with traffic law enforcement, will increase roadblocks and safety checks along these busy corridors. These will focus on ensuring drivers and vehicles are roadworthy and that passengers are safe.

• The public is encouraged to download the MVA Fund Mobile App for crash reporting with precise GPS location, claim status queries, and access to road safety information.

• Recent rains have weakened parts of the road network, causing closures and detours in some areas. Travelers should plan accordingly and stay updated on road conditions.

• Police have issued warnings about increased traffic, especially on the B1 heading north, urging drivers to obey traffic laws and avoid risky behavior such as driving under the influence.

Safety Tips:

• Plan your route in advance and allow extra travel time.

• Ensure your vehicle is in good condition before departure.

• Adhere strictly to speed limits and traffic regulations.

• Avoid driving under the influence of alcohol or fatigue.

• Use the MVA Fund app or toll-free number 9682 to report accidents promptly.

Travelers are advised to stay informed through official channels and drive safely to ensure a joyful and accident-free Easter holiday.