Business spending perks up slowly

October brought rosier annual growth figures for new vehicle sales, building plans approved and credit extended.

05 December 2018 | Business

Barring any external shocks, or poor policy decisions, the country should start emerging from recession in 2019, although at a sedate pace. – IJG Securities

Jo-Maré Duddy - Twelve-month cumulative sales of new medium commercial vehicles in October showed positive annual growth for the first time in three years.

Sales for the 12 months ended October 2018 were 0.83% higher than the corresponding period in 2017, IJG Securities says in their analysis of the latest figures.

Sales of new heavy commercial vehicles rose 0.2% on a 12-month cumulative basis, the first time since February 2016.

“The positive growth is negligible at this point, but it is possible that a floor in medium and heavy commercial vehicle sales has been found as companies that have been sweating assets start to replace those vehicles,” IJG says.

Scrutinising Windhoek's latest building stats, IJG says based on a 12-month cumulative basis the number of commercial and industrial plans approved increased by 2.1% year on year in October. 48 plans got the green light, totalling about N$400.6 million. In terms of value, this is 44.3% lower than the corresponding 12-month period in 2017.


New figures released by the Bank of Namibia (BoN) show commercial bank credit extended to business in October was 7.1% more than a year ago.

Not only is this highest annual growth figure for business so far this year, but it also exceeds the year-on-year increase in credit extended to individuals – coming in at 7.0%.

At the end of October, the business sector owed local commercial banks nearly N$38.5 billion, about N$2.5 billion more than a year ago.

The bulk of this – some N$11.4 billion – was mortgage loans. Compared to October 2017, the sector's mortgage loans grew by 0.8%.

Other loans and advances, which includes personal loans and credit – shot up by 30.1% on annual basis. At the end of October, the business sector owed over N$6.1 billion in other loans and advances, about N$1.4 billion more than October 2017.

Overdraft debt increased by 9.8% on annual basis and totalled about N$8.9 billion, some N$793 million more than a year ago.

Business remained cautious of instalment credit, which grew -8.2% year on year. At the end of October, the sector owed nearly N$4.5 billion in instalment. This is about N$397 million less than a year ago.

Commenting on the latest developments, IJG says: “We suspect that Namibia is reaching the bottom of the economic downturn with a number of high frequency indicators such as private sector credit extension (PSCE) pointing to a bottoming out.”

The analysts expect consumer confidence to translate to business confidence as demand picks up. However, “signs of a widespread upswing in economic activity are still missing at present and global headwinds do pose an increased threat to recovery in the Namibian economy,” IJG says.

“The outlook for Namibia remains fragile as a result, but barring any external shocks, or poor policy decisions, the country should start emerging from recession in 2019, although at a sedate pace,” IJG says.

Similar News


Chinese fishing deal makes waves ahead of Madagascar polls

2 days ago - 17 December 2018 | Business

Beatrice Debut - The sun glistens on waves lapping against wooden fishing boats as their sails ripple in the breeze coming off the Indian Ocean.Nearby...

Company news in brief

2 days ago - 17 December 2018 | Business

Eskom evaluating bids for mortgage business South Africa's cash-strapped power utility Eskom is evaluating bids for its mortgage lending business, a spokesman said on Friday,...

NEO Paints announces grand winner

5 days ago - 14 December 2018 | Business

Photo: ContributedBlasius Kandjumbi was yesterday announced as the winner of N$65 000 in a lucky draw marking NEO Paints’ 65th anniversary. In the photo with...

Creative go-getters

5 days ago - 14 December 2018 | Business

Elizabeth JosephTrendquest Media is the new kid on the block in the media monitoring industry. The women behind this brand is Ndeyapo Mbudje, who is...

Treating the elderly and disabled

5 days ago - 14 December 2018 | Business

The Original Sons and Daughters of Okombahe (Osadoo) Foundation hosted a Christmas party for the elderly and disabled at Okombahe on 9 December. The Pinnacle...

Company news in brief

5 days ago - 14 December 2018 | Business

Group Five gets interest for parts of businessSouth African construction firm Group Five Ltd has received interest from a number of parties for various parts...

Another tough half-year for Nictus

6 days ago - 13 December 2018 | Business

Jo-Maré Duddy – The recession continued eroding the profit of Nictus Holdings in the first six months of its current financial year, but its impact...

Company news in brief

6 days ago - 13 December 2018 | Business

Anglo expects higher production, lower costsMining group Anglo American Plc expects its production to rise more than previously expected in 2018 and 2021 while costs...

Tough year for mining

1 week ago - 12 December 2018 | Business

While this year has been very challenging for the mining industry, indications are that the uranium market may recover by 2022, which will result in...

Company news in brief

1 week ago - 12 December 2018 | Business

KPMG SA appeals for second chanceThe chairman of KPMG South Africa on Monday appealed for the firm to be seen as a changed business, following...

Latest News

Police divers search for drowning...

1 day - 18 December 2018 | Crime

Police divers are searching for the bodies of four girls - aged 13, 15, 16 and 17 - who drowned in the Orange River on...

Support your child

1 day - 18 December 2018 | Columns

For many thousands of young Namibians, who wrote their grade 10 and matric examinations this year, it is a time of great uncertainty, as they...

PDM embarrassed by govt

1 day - 18 December 2018 | Politics

The Popular Democratic Movement (PDM) says 2018 was an embarrassing year, as government leaders failed to address rising labour, social and economic problems. PDM...

Iilonga to be buried in...

1 day - 18 December 2018 | People

President Hage Geingob has accorded liberation veteran, politician and unionist Petrus Iilonga a state funeral.In a media statement, the presidency announced that Iilonga would be...

Mujoro 'excited' about DRC EVMs

1 day - 18 December 2018 | Politics

With elections in the Democratic Republic of Congo (DRC) slated for 23 December, Electoral Commission of Namibia (ECN) chief electoral officer Theo Mujuro is currently...

Litterbugs beware

1 day - 18 December 2018 | Environment

Littering and other environmental damage will not be tolerated in Namibia's national parks and protected areas this festive season. The environment ministry, together with the...

Van der Westhuizen tops

1 day - 18 December 2018 | Sports

An 80-year-old golfer, Piet van der Westhuizen, was recently crowned as the winner of the Bank Windhoek Senior Open Golf Championship that took place in...

Legends turn on Mourinho

1 day - 18 December 2018 | Sports

Jose Mourinho came under fire from Manchester United legends after his side's dismal display in a 3-1 defeat at Liverpool that underlined just how far...

Magic to tango with Julinho

1 day - 18 December 2018 | Sports

Tura Magic will clash with Julinho Sporting tonight in the 2018/19 Namibia Premier League (NPL).The match will take place at the Sam Nujoma Stadium at...

Load More