Namibia's Banking Sector Under Scrutiny: Parliament Calls for Urgent Regulation! -☕ #Issue 21

Good day, valued subscribers.

Happy new week! This week, Africa has been abuzz with significant developments in finance, technology, and economic policy. From Namibia's banking sector facing calls for urgent regulation to African pension funds emerging as a powerhouse for infrastructure development, the continent is navigating complex challenges and opportunities. Meanwhile, Starlink is revolutionizing internet access in Nigeria, while Senegal grapples with economic downgrades and policy shifts. On the tech front, Jumia Nigeria is kicking off Tech Week 2025, offering consumers unbeatable deals on the latest gadgets. Let's dive into these stories and explore how they're shaping Africa's future!

BUSINNES & ECONOMY

Namibia's Banking Sector Under Scrutiny: Parliament Calls for Urgent Regulation!

The Parliament Standing Committee on Economics and Public Administration is sounding the alarm for clearer regulations on bank charges in Namibia! Chairperson Natangue Ithete emphasized that commercial banks must operate fairly and transparently, highlighting the need for a thorough investigation into their conduct.

What's at Stake?

• Lack of Clear Regulation: Despite the Minister of Finance and Public Enterprises having the mandate to regulate bank charges under the Payment Management System Act and the Banking Institutions Act, there's currently no clear framework in place.

• Public Concerns: High banking costs have been a persistent issue, with a 2010 study by the Ministry of Finance initially highlighting excessive fees associated with Namibian banking products and services.

• Impact on Homeownership: Popular Democratic Movement President McHenry Venaani criticized banks for strict financing policies that hinder homeownership, affecting even high-income earners.

Key Recommendations:

• Amendments to the Bank of Namibia Act: The Standing Committee has called for urgent amendments to strengthen regulatory oversight and enhance consumer protection.

• Clear Regulations: The Ministry of Finance and Public Enterprises is urged to establish clear regulations to oversee bank charges and prevent unfair practices.

• Consumer Protection: Without effective oversight, consumers will continue to be disadvantaged, making regulatory intervention an urgent necessity.

The Bottom Line:

Namibia's banking sector is facing a critical moment. The push for clearer regulations on bank charges is not just about fairness; it's about ensuring that financial services are accessible and affordable for all Namibians. With the government poised to take action, the future of banking in Namibia could be on the cusp of significant change.

N$400 Million Fuel Levy Hike Falls Short for Namibia’s Roads

What’s the Big Deal? Namibia’s roads are crying out for help, but the Road Fund Administration (RFA) says the recent 20-cent fuel levy hike—bringing the total to N$2.43 per litre—won’t cut it. The increase, effective this March, will rake in about N$400 million, a drop in the bucket compared to the N$3.8 billion needed to tackle the country’s road infrastructure funding gap. RFA CEO Ali Ipinge had pushed for a N$1 per litre boost for the 2025/2026 financial year, but the approved 45-cent total (including this hike) leaves them scrambling to keep roads from crumbling. With maintenance delays looming and the gap widening—up from N$3 billion in 2023—the RFA is now eyeing tolling and other road user charge tweaks to bridge the shortfall.

Key Highlights:

• Fuel levy now at N$2.43 per litre, generating N$400 million.

• N$3.8 billion needed, but only 45% of the optimal funding secured.

• Tolling in the works, pending government approval and consultations.

• Dealer’s margin also up by 30 cents to N$2.22 per litre.

Why This Matters: Roads are the backbone of Namibia’s economy, connecting farms, mines, and towns across our sprawling 49,000-kilometre network. Underfunding means potholes deepen, projects stall, and safety takes a hit—hardly ideal for a country banking on growth. The RFA’s five-year plan aims to overhaul the system, but without cash, those ambitions could stay on paper.

What’s Next? Expect more talks on toll plazas and levy adjustments as the RFA hustles for sustainable fixes. For now, Namibian drivers will feel the pinch at the pump—again—while the roads they travel might not see much improvement anytime soon.

NHE revenue surges to N$229 million in 2024

The National Housing Enterprise (NHE) is making waves in the property game, reporting a hefty N$229 million in revenue for the 2023-2024 financial year—a 35% jump from last year’s N$169 million. Speaking at the NHE’s AGM, Chairperson Toska Sem credited the surge to a blockbuster year in housing sales, with units sold skyrocketing from 223 in 2023 to 445 in 2024. The return of the mass housing mandate and sharper operational focus have turbocharged delivery, helping NHE rake in cash faster. With a total asset base of N$1.2 billion and a tidy N$6 million profit, Sem boasted a lean debt-to-equity ratio and a solid cash cushion, making NHE a sturdy player in today’s economic winds.

The numbers tell the story:

Revenue: N$229M (up from N$169M)

Housing units sold: 445 (up from 223)

Total assets: N$1.2B

Profit: N$6M

But it’s not all smooth sailing. Affordable serviced land in urban hotspots remains a headache, though Sem said intensified talks with local authorities have unlocked plots in several towns. Funding’s another hurdle—NHE’s pitching affordable financing ideas to its shareholder to keep the housing pipeline flowing. On the compliance front, NHE’s flexing a glow-up from 40% to 95% adherence to the Public Enterprises Governance Act since April 2023, thanks to its shiny new 2024-2029 strategic plan. With eyes on growth, efficiency, and customer vibes, NHE’s proving it’s more than just a roof over your head—it’s a cornerstone of Namibia’s housing hustle.

VAT Hike Sparks Alarm in South Africa South Africa’s Finance Minister Enoch

Godongwana’s Budget speech dropped a bombshell: VAT in South Africa is climbing from 15% to 16% over two years, with 0.5% hikes slated for 2025/2026 and 2026/2027. The VAT increase announcement has businesses and civil society clutching their pearls, fearing a squeeze on already stretched wallets. To ease the sting, Gondongwana tossed in plans to zero-rate more food items like canned veggies and organ meats, but the jury’s out on whether that’ll cut it. With no inflation tweaks to personal income tax brackets either, the vibe is tense—household budgets, consumer spending, and economic stability are all on the line.

Key Highlights:

VAT jumps to 16% by 2026/2027, no personal tax relief in sight.

Zero-rated food expansion aims to soften the blow, but critics say it’s not enough.

Businesses fear muted growth; advocates slam it as a betrayal of the poor.

Why This Matters: South Africa’s economy is already hobbling, and this VAT bump could kneecap it further. Khulekani Mathe of Business Unity South Africa warns it’ll choke demand and overburden a narrow tax base, while STANLIB’s Kevin Lings notes compromises like skimping on social grant boosts and fiscal drag relief. BASA echoes the sentiment—less disposable income means less spending, period. Meanwhile, Black Sash is sounding the alarm on social grants, pointing out that even with above-inflation hikes, the Child Support Grant lags behind the R796 food poverty line, and the SRD Grant’s stagnation ignores the unemployment crisis. It’s a regressive move that could widen inequality in a country already teetering on the edge.

What’s Next? The government’s betting on shaky spending reviews to keep the fiscal ship afloat, but without a growth turbocharge, this could backfire. Eyes are on whether parliament greenlights this—or if coalition cracks widen. For Namibians watching, it’s a cautionary tale: tax hikes sound simple, but the ripple effects hit hard.

African Pension Funds: The New Powerhouse for Infrastructure Development!

Africa is on the cusp of a financial revolution, and pension funds are at the forefront! With a growing population and expanding middle class, African pension funds have accumulated substantial capital, making them a vital source for financing infrastructure projects across the continent.

The Potential:

• Infrastructure Gap: Africa faces a massive infrastructure gap, requiring between $130 billion and $170 billion annually for projects like roads, power plants, and internet connectivity (African Development Bank).

• Pension Fund Assets: Assets under management have grown significantly, with South Africa leading at $500 billion, followed by Nigeria at $33 billion, Kenya at $12.8 billion, Namibia at $12.1 billion, and Botswana at $9.7 billion (International Finance Corporation).

• Long-Term Investments: Pension funds are well-suited for infrastructure projects due to their long-term outlook and stable cash flows, providing steady returns through tolls, electricity sales, and other revenue streams (FSDAfrica).

Challenges and Opportunities:

• Regulatory Reforms: Improvements in fund governance, regulation, and supervision are crucial for pension funds to effectively invest in infrastructure (Amadou Sy).

• Expertise Gap: Pension fund managers often lack the expertise needed for infrastructure investments, making it essential to hire dedicated specialists (Africa Financial Industry Summit).

• Alternative Investments: Regulatory changes are enabling greater allocation to alternative assets like private equity and venture capital, offering uncorrelated returns and opportunities for real economic growth (RisCura).

Success Stories:

• Nigeria and South Africa: Both countries have successfully used pension assets to finance key infrastructure projects, such as roads, power generation, and renewable energy initiatives (FSDAfrica).

• International Partnerships: Global pension funds are increasingly investing in African infrastructure, with partnerships like the African Development Bank facilitating loans for sustainability projects (Energy Capital & Power).

The Bottom Line:

African pension funds hold immense potential for driving infrastructure development and economic growth. By addressing regulatory and expertise challenges, these funds can unlock billions for transformative projects, creating a win-win scenario for both investors and communities. As Africa continues to evolve, leveraging pension funds will be crucial for bridging the infrastructure gap and fostering sustainable development.

Starlink Takes Nigeria by Storm: Revolutionizing Internet Access Across Africa!

Starlink, SpaceX's satellite internet service, is making waves in Nigeria and beyond! As of March 2025, Starlink has become the second-largest internet service provider in Nigeria, surpassing FiberOne and trailing only Spectranet. This achievement marks a significant milestone in Starlink's African expansion, which now spans 19 countries with plans to enter 15 more in 2025.

Key Developments in Nigeria:

• Rapid Growth: Starlink reached 65,564 subscribers in Nigeria by Q3 2024, with a growth rate that could soon challenge Spectranet's market lead.

• Coverage and Speed: Starlink covers over 80% of Nigeria, offering download speeds between 50 and 150 Mbps, significantly faster than the national average of 20 Mbps in 2023.

• Economic Impact: Starlink's expansion is projected to generate up to USD 1.2 billion in additional revenue for the Nigerian economy by 2026, boosting sectors like education, healthcare, and e-commerce.

Broader African Push:

• New Markets: Starlink is expanding into more African countries, with Niger being the latest to grant a five-year license. This move aims to bridge the digital divide in regions with limited internet access.

• Competition and Innovation: Starlink's presence is prompting traditional telecom providers to innovate and expand their services beyond urban areas, driving competition and improving connectivity across the continent.

• Challenges and Opportunities: While Starlink faces regulatory hurdles in some countries, its direct-to-consumer model is transforming the internet landscape, offering high-speed access where traditional infrastructure is lacking.

The Bottom Line:

Starlink's rapid expansion in Nigeria and across Africa is redefining internet access and challenging traditional providers to adapt. As more countries embrace Starlink, the potential for economic growth, digital inclusion, and innovation is vast. However, balancing this growth with regulatory challenges and ensuring equitable access will be crucial for maximizing the benefits of this technological revolution.

Senegal's Economic Crossroads: Downgrades and Policy Shifts!

Senegal is facing significant economic challenges, marked by recent credit rating downgrades and a pressing need for policy reforms. Both Moody's and Standard & Poor's (S&P) have downgraded Senegal's ratings, citing concerns over debt management and fiscal sustainability.

Key Developments:

• Moody's Downgrade: Moody's lowered Senegal's rating to B3 from B1, highlighting a weak fiscal position with central government debt estimated at 99.7% of GDP in 2023—much higher than previously reported (Moody's,). The outlook remains negative due to elevated funding needs and risks.

• S&P Downgrade: S&P also downgraded Senegal's rating to B from B+, citing concerns about debt management and the government's ability to maintain sustained growth (S&P,).

Economic Context:

• High Debt Levels: Senegal's public debt has reached alarming levels, with estimates suggesting it could be around 106% of GDP, significantly higher than previously reported (Court of Auditors,).

• Fiscal Deficits: The government aims to reduce fiscal deficits to 3% by 2027, but S&P and Moody's express skepticism about achieving this target due to execution risks and governance challenges (S&P,).

Policy Shifts:

• Reform Plans: The Senegalese government has proposed reforms to strengthen revenue generation and streamline expenditures. However, these plans face challenges, including weak budgetary management and discrepancies between budgeted and actual spending (S&P,).

• IMF Support: Senegal is seeking a new IMF program to secure concessional financing, which is crucial for stabilizing its financial situation (Moody's,).

The Bottom Line:

Senegal's economic future hinges on its ability to implement effective reforms and restore fiscal balance. The recent downgrades underscore the urgency of addressing debt vulnerabilities and improving governance. While Senegal has significant natural resources and growth potential, overcoming these challenges will require sustained policy efforts and international support.

TECH

Jumia Nigeria Kicks Off Tech Week 2025!

Jumia, the leading pan-African e-commerce platform, has launched its highly anticipated Tech Week 2025 in Nigeria! Running from March 17 to March 30, this campaign offers consumers unbeatable discounts on the latest gadgets and smart devices, including smartphones, laptops, home appliances, and entertainment systems.

Key Highlights:

• Partnerships: Jumia has partnered with top global and local brands like Xiaomi, Oraimo, Binatone, Itel, and more to deliver premium products at the best prices.

• Digital Transformation: With over 142 million active internet subscribers in Nigeria, Jumia Tech Week caters to the country's rapid digital transformation, making tech upgrades accessible to all.

• Exclusive Offers: Beyond discounts, the campaign features exclusive flash sales, brand days, giveaways, and interactive games, ensuring a seamless and engaging shopping experience.

The Bottom Line:

Jumia Tech Week 2025 is set to revolutionize how Nigerians access cutting-edge technology, fostering a culture of innovation and connectivity. By bridging the gap between consumers and the latest tech essentials, Jumia is driving digital inclusion and economic growth in Nigeria.

Namibia Hit by Over 1.1 Million Cyberattacks in 2024

Namibia’s digital defenses took a beating in 2024, with over 1.1 million cyberattacks striking businesses, government bodies, and individuals. Certified fraud examiner Melanie Meiring dropped a bombshell last month, revealing that Telecom Namibia (TN) alone saw a breach exposing 626 gigabytes of sensitive data—think IDs, bank details, and customer contracts—courtesy of the Hunters International crew, costing a staggering N$5.4 billion (US$300 million). Not to be outdone, Paratus Namibia reported its own headache last week, with 84 gigabytes of data compromised. The Communications Regulatory Authority of Namibia (Cran) cautions that the 1.1 million figure is just the tip of the iceberg, as it only covers external attacks, leaving internal breaches like phishing and spoofing uncounted. Nam-CSIRT is still piecing together the full picture, with more data expected as reports roll in.

Key Takeaways:

1.1 million+ attacks in 2024, likely underreported.

TN and Paratus hacked, losing massive data hauls.

No cybersecurity law, weak enforcement, and a skills shortage fuel the crisis.

New risk framework launched, but coordination’s still missing.

The Bigger Picture: While countries like South Africa locked down cybersecurity laws years ago, Namibia’s still playing catch-up, leaving its systems ripe for exploitation. Weak security, outdated tech, and a lack of trained pros have cybercriminals licking their chops. Expert Nrupesh Soni isn’t mincing words: awareness is low, budgets are thin, and there’s no national strategy or dedicated response team to fight back. The skills gap is glaring, and enforcement? More of a polite suggestion than a rule. On Monday, ICT Deputy Minister Modestus Amutse unveiled an Enterprise Risk Management framework to tackle these threats, but with no centralized plan, it’s a steep hill to climb.

What’s Next? Nam-CSIRT’s full 2024 report could shed more light, but without a beefy strategy and investment, Namibia’s digital frontier remains a hacker’s playground. Buckle up—this ride’s not over.

Baidu’s New AI Models Shake Up the Game

Chinese tech titan Baidu dropped a double whammy this weekend, unveiling Ernie 4.5 and Ernie X1—two shiny new AI models aimed at flexing some serious muscle. Ernie 4.5, the latest upgrade to Baidu’s foundational model from two years back, boasts a “high EQ,” decoding memes and satire like a pro, while juggling text, video, images, and audio with ease. Meanwhile, Ernie X1, a reasoning-focused newcomer, claims to match DeepSeek’s R1 performance at half the cost. Both are multimodal champs, but here’s the kicker: Baidu’s been playing catch-up since its ChatGPT rival stumbled on adoption, and DeepSeek’s budget-friendly powerhouses have the U.S. AI crowd sweating.

Why This Matters: Namibia’s tech-curious should perk up—cheap, potent AI could ripple beyond China, impacting everything from local startups to global competition. Baidu’s pricing slashes (think $0.55 per million input tokens for Ernie 4.5) and free access via Ernie Bot signal a push to dominate, potentially sparking a price war. With Ernie 5 looming later this year, promising even slicker multimodal tricks, the AI race is heating up fast.

Key Highlights:

Ernie 4.5: Multimodal with meme-savvy “high EQ.”

Ernie X1: DeepSeek R1 rival at 50% the price.

Both free on Ernie Bot; enterprise APIs rolling out.

The Bottom Line: Baidu’s betting big on cost and capability to claw back ground. For Namibia, it’s a heads-up: affordable AI might soon reshape how we work and play—assuming Baidu can finally get the world to bite.

Personal Development

"You don’t have to be great to start, but you have to start to be great." — Zig Ziglar

This quote encourages you to take the first step towards your goals, even if you don't feel fully prepared. It's about embracing the journey and learning as you go.

Happy New Week! 🌟