SBN Holdings Reports Robust Growth in First Half of 2025 Amid Challenging Conditions- ISSUE #69 ☕

Welcome to Revolox Media — where we break down the numbers, trends, and global shifts shaping Namibia’s future.

Here’s what’s on the radar today:

• SBN Holdings posts solid growth in the first half of 2025, proving resilience even in challenging economic terrain.

• Namibia’s primary industries show a tale of divergence, with some sectors thriving while others struggle — highlighting both vulnerabilities and opportunities in our economy.

• Google faces a A$55 million fine in Australia over anti-competitive search engine practices — a global reminder of big tech’s growing accountability battles.

• And closer to home, we unpack food self-sufficiency vs. food security in Namibia, exploring the challenges and possible pathways toward a more sustainable agriculture sector.

From boardrooms to farmlands, and from Silicon Valley to southern Africa — this edition connects the dots on resilience, accountability, and sustainability.

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BUSINESS & ECONOMY

SBN Holdings Reports Robust Growth in First Half of 2025 Amid Challenging Conditions

SBN Holdings Limited, the Namibian subsidiary of the Standard Bank Group, announced a strong set of financial results for the first half of 2025, showing a 10.1% year-on-year increase in profit to N$556.9 million. This performance underscores the group’s resilience and strategic execution through disciplined cost control, diversified revenue streams, and prudent risk management.

Profitability and Shareholder Returns

Earnings per share (EPS) grew by 9.3% to 106 cents, reflecting operational strength. The Board declared an interim dividend of 64 cents per share—slightly down from 68 cents in the previous year but yielding an attractive 11.5% based on the current share price. Return on equity (ROE) improved significantly to 20.3% from 18.6%, highlighting efficient capital use.

Revenue Growth Amid Margin Compression

Despite margin pressures from a 100 basis point cut in the repo rate by the Bank of Namibia over the past year, net interest income rose 2.9% to N$1.05 billion. Non-interest revenue increased by 3.6% to N$793 million, with slower growth attributed mainly to a 13.8% decline in trading revenues due to subdued market volatility and absence of one-off gains recorded in the first half of 2024.

Strong Loan Growth and Improved Asset Quality

SBN’s loan book expanded 8.8%, outpacing Namibia’s overall private sector credit growth of 5.9%, signaling renewed lending momentum. Asset quality improved, with non-performing loans (NPL) ratio declining to 3.7% from 4.7%, and credit impairment charges falling 21.8%. The credit loss ratio improved to 0.5% from 0.7%.

Cost Control and Capital Position

Operating expenses rose modestly by 2.1%, below inflation, aided by branch optimisation including closures. The cost-to-income ratio improved slightly to 54.4%. Capital ratios remain strong, with total capital adequacy at 17.25% and Common Equity Tier 1 ratio at 15.31%, providing a robust buffer for future growth.

Segment Performance and Challenges

Corporate & Investment Banking saw a remarkable 91.85% jump in profit after tax, driven by lending to mining, energy, and logistics sectors. Personal & Private Banking grew 4.78%, restrained by modest household credit expansion. Liquidity tightened significantly with cash and central bank balances dropping 61.4% year-on-year, requiring vigilant management going forward.

Risks and Outlook

Margin compression from rate cuts and shifts in funding mix, coupled with global geopolitical uncertainties, pose risks to profitability and credit growth. Regulatory changes may also influence lending spreads.

Analyst View

Simonis Storm Securities maintains a "BUY" rating but has placed its target price under review following strong H1 results. The firm projects full-year earnings may exceed initial forecasts by around 9%, driven by expected lending acceleration, potential revival in trading income, and continued cost efficiencies. SBN offers an attractive price-to-earnings ratio of 5.2x.

Botton line

SBN Holdings demonstrates resilience and strategic poise in a complex economic landscape, with diversified earnings, robust capital, improved asset quality, and targeted growth positioning it well for sustained value creation.

Source: BusinessExpress

Namibia’s Primary Industries: A Tale of Divergence and Resilience Amid Economic Challenges

According to the latest Bank of Namibia (BoN) Economic Outlook report, Namibia’s primary industries—key pillars of its economy alongside mining—face contrasting fortunes in 2025 and 2026. The overall primary sector, comprising agriculture, forestry, fishing, and mining & quarrying, is expected to contract slightly by 0.2% in 2025 but stage a moderate recovery of 0.9% growth in 2026.

Livestock Under Severe Stress from Drought

The livestock sector bears the brunt of ongoing challenges, predicted to plunge by a stark 16.8% in 2025 following the devastating drought of 2024. Forced early cattle sales sharply reduced national herd sizes, leading to continued shortages of market-ready livestock. This projection marks a significant downward revision from earlier forecasts, underscoring the drought’s severe, lingering impact. A slight rebound is expected in 2026, but recovery remains slow, with livestock well below pre-drought levels. Consequently, the broader agriculture, forestry, and fishing sector is forecast to shrink 6.0% in 2025 after declining 2.7% in 2024.

Crop Farming and Forestry Show Resilience

In contrast to livestock woes, crop farming and forestry are projected to rise sharply by 8.6% in 2025, buoyed by improved rainfall patterns that support rural livelihoods and agricultural supply chains. Fishing and fish processing will also experience a milder decline in 2025 (-4.7%) with a return to growth (+2.2%) expected in 2026.

Diamond Mining: A Structural Decline

Namibia’s iconic diamond mining sector continues to struggle, with output forecast to fall 4.5% in 2025 and another 5.7% in 2026, on top of a 3.7% contraction in 2024. Weak global demand, increasing competition from lab-grown diamonds, and trade challenges converge, marking a medium-term structural challenge for the industry. Though slightly better-than-expected performance added a small upward revision in 2025, the sector’s outlook remains bleak.

Uranium Mining: A Bright Spot

Uranium mining stands as Namibia’s shining star, projected to surge 23.3% in 2025—a dramatic leap from 1.8% growth in 2024—driven by rising production and strong international demand linked to nuclear energy’s role in decarbonization and energy security. While growth will moderate to 6.2% in 2026, uranium remains a powerful economic driver with upward forecast revisions reinforcing its importance.

Metal Ores and Other Mining Show Mixed Dynamics

The metal ores subsector is expected to grow robustly by 8.3% in 2025 and 6.4% in 2026, supported by higher-grade ores and underground mining expansion, as well as elevated gold prices benefiting profitability. Yet, revised projections show a notable upgrade for 2025 but a downgrade for 2026 due to adjusted production timelines.

Other mining and quarrying activities, including oil and gas exploration, are set to recover moderately with growth of 3.4% in 2025 and 6.5% in 2026, following renewed exploration efforts despite slower-than-expected progress relative to prior forecasts.

Risks and Strategic Imperatives

Namibia’s primary industries highlight the country’s vulnerability to both environmental shocks and global economic shifts. Climate change impacts like drought pose ongoing threats to agriculture, while diamond mining grapples with technological disruption and shifting consumer preferences. Conversely, uranium benefits from global energy transitions, and metal ore mining rides commodity cycles.

The BoN cautions about persistent downside risks such as protectionist policies and geopolitical conflicts that could disrupt trade and commodity markets. These factors reinforce the urgent need for economic diversification away from reliance on volatile mineral exports.

Conclusion: Navigating a Crossroads

Namibia’s primary industries stand at a critical crossroads. The stark contraction in livestock and decline in diamonds contrast sharply with the uranium boom and steady metal ore growth. This divergence underscores complex interactions between climate, markets, technology, and policy.

To secure sustainable growth, Namibia must bolster resilience in drought-affected agriculture, support vulnerable industries, capitalize on growth in high-demand minerals like uranium, and accelerate efforts toward broad economic diversification.

These sectors will play a decisive role in whether the national economy slows to projected 3.5% growth in 2025 or strengthens toward the anticipated 3.9% rebound in 2026.

Source: BusinessExpres

TECH

Google to Pay A$55 Million Fine in Australia for Anti-Competitive Search Engine Deals

Google has agreed to pay a A$55 million (approximately $35.8 million) fine in Australia after the Australian Competition and Consumer Commission (ACCC) found that the company engaged in anti-competitive conduct by paying the country’s two largest telecommunications providers, Telstra and Optus, to exclusively pre-install its search application on Android phones. These arrangements, in place from late 2019 to early 2021, effectively excluded rival search engines from competing on these devices.

Google admitted that these deals substantially lessened competition in the Australian market. As part of the resolution, Google has ceased signing similar agreements and has jointly submitted to the Federal Court that it should pay the fine. The court will now decide if the penalty is appropriate.

ACCC Chair Gina-Cass Gottlieb said, “Today’s outcome creates the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers.” The ACCC highlighted that such conduct restricts competition and is illegal because it reduces consumer choice, increases costs, and can worsen service.

This fine follows a challenging period for Google in Australia, including a recent court ruling largely against the company regarding a lawsuit by Epic Games over app store competition and the inclusion of YouTube in Australia’s social media restrictions on minors.

Google expressed satisfaction with resolving the ACCC’s concerns, noting that the provisions under scrutiny have not been part of its commercial agreements for some time. A Google spokesperson stated: “We are committed to providing Android device makers more flexibility to pre-load browsers and search apps, while preserving offerings that help them innovate, compete, and keep costs low.”

Telstra and Optus have cooperated with the ACCC and committed not to enter into similar exclusivity agreements with Google since 2024.

The Bottom Line

This resolution is a significant step in promoting fair competition in Australia’s search engine and mobile markets, opening the door for greater diversity of search services amid rapid developments in AI and digital technologies.

Source: Reuters

AGRICULTURE

Understanding Food Self-Sufficiency and Food Security in Namibia: Challenges and Pathways to Sustainable Agriculture

Food self-sufficiency and food security are interconnected but distinct concepts. Food self-sufficiency refers to a country’s ability to meet its daily food needs through its own production rather than relying on imports or purchases. In contrast, food security means that sufficient, safe, and nutritious food is available and accessible, regardless of its source. Importantly, food self-sufficiency is a vital enabler for achieving lasting food security and sustainable livelihoods.

Current Challenges Facing Food Production in Namibia

Namibia’s agriculture sector, central to livelihoods and the national economy, faces numerous challenges—climatic extremes (droughts, floods), pests, diseases, population growth, political conflicts, and trade barriers. These factors contribute to food scarcity, particularly in vulnerable communities.

The sector is dominated by livestock farming (cattle, sheep, goats) alongside poultry, piggery, and dairy enterprises. Crop production focuses on staples like maize and millet, supplemented by horticulture including grapes, onions, carrots, and more. Production occurs at varied scales—from commercial farms targeting local and export markets to subsistence farmers primarily producing for household consumption in communal areas.

Despite local production efforts, Namibia remains reliant on food imports, including crops, pig, and poultry products, due to insufficient domestic output.

Key Limitations to Sustainable Agriculture

The main obstacles to sustainable food production in Namibia include:

• Limited knowledge and skills among farmers

• Restrictive access to land and affordable finance

• Shortages of agricultural inputs and appropriate technologies

• Poor market accessibility and inadequate farm infrastructure

• High production costs and rural-urban migration

• Unfavourable climatic conditions and land degradation

• Pests and disease outbreaks

• Slow or ineffective implementation of policies and developmental initiatives

Strategies for Enhancing Food Self-Sufficiency

Achieving food self-sufficiency requires a comprehensive approach addressing all stages from production to consumption. Key strategies include:

• Localized research and experimentation to develop sustainable production methods and technologies, including indigenous crops

• Promoting greater consumption of locally produced foods through institutions such as schools, hospitals, prisons, and food aid programs, which can serve as market gateways for farmers

• Improving access to essential resources—land, finance, inputs, information, and capacity-building services

• Developing domestic input manufacturing industries to reduce dependency on imported seeds, machinery, and chemicals

• Encouraging value addition to local foods and raw materials to lower production costs, reduce imports of finished products, and increase affordability

The Road Ahead

Food self-sufficiency is a critical developmental agenda that necessitates coordinated efforts across policies, institutions, and investments. Strengthening and harmonizing these support systems will drive sustainable agricultural growth and broader economic development in Namibia, reducing food import dependence and enhancing resilience against global shocks.

The Bottom Line

For Namibia to achieve food security and sustainable livelihoods, prioritizing food self-sufficiency through localized, integrated strategies is essential. This will contribute to economic stability, poverty reduction, and long-term resilience within the agriculture sector and beyond.

Source: The Brief

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