Day: May 22, 2023

New car sales totalled 1 004 units in April 2023, reflecting a 10 per cent year-on-year increase but an 18.1 per cent monthly decline.

This information was revealed by Cirrus Capital, a Namibian-owned financial services firm, in its vehicle sales report.

While this is fewer than the 1 226 units sold in March 2023 and the 1 103 units sold in February 2023, it is the third month in a row that new vehicle sales have surpassed 1 000 units, with commercial vehicle sales outnumbering passenger vehicle sales by 68 units.

It stated that for the second month in a row, commercial vehicles dominated new vehicle sales, which increased by 22.1 per cent year-on-year, but fell 17.7 per cent month-on-month.

Passenger vehicle sales increased little by 0.4 per cent year-on-year, but fell 18.6 per cent month-on-month.

It also reported that rental agencies purchased 52 units, a considerable decrease from the 113 units purchased in March, and that 37 of the 52 rental units were passenger vehicles, with the remaining 15 units being light commercial vehicles.

According to the report, new car sales are off to a great start this year, despite the challenges of much higher borrowing rates and continuous vehicle price increases. This, according to the report, is especially surprising given the difficulty consumers encounter in acquiring auto financing due to affordability issues.

‘With many disruptive public holidays in May (resulting in fewer trading days), this is likely to soften vehicle sales in May. Additionally, the severe Rand weakness in May could see the South African Reserve Bank hike more to protect the currency, placing further pressures on affordability for the remainder of the year,’ it said.

In April 2023, 536 commercial vehicles were sold, down from 651 units in March 2023 and 544 in February 2023. Nonetheless, this represents a 22.1 per cent increase year over year. Light commercial vehicles (LCVs) were sold in lower numbers, falling to 473 units in April 2023 from 580 in March 2023. According to the report, LCVs grew 20.7 per cent year-on-year but declined 18.4 per cent month-on-month.

Source: The Namibian Press Agency

Chairperson of the Parliamentary Standing Committee on Economics and Public Administration Natangwe Ithete has emphasised the need to review and change Acts to suit current narratives.

Speaking on Monday at the opening of the Consultative and Oversight Workshop on the Financial Institutions and Markets Act (FIMA) taking place in Swakopmund, Ithete said there is nothing wrong with replacing Acts that no more serve a purpose.

Ithete was making reference to among others; the FIMA clause on pension preservation, which requires members to preserve 75 per cent of the minimum withdrawal benefit until age 55, which has sparked public outcry.

Gazetted in 2021, FIMA aimed to replace the outdated Pension Fund Act of 1956, with the aims to reform, consolidate and harmonise the laws that govern non-bank financial institutions, financial intermediaries and financial markets, while addressing flaws identified in the current outdated legislation.

‘We found ourselves sitting with a Pension Fund Act gazetted in 1956, an Act which we realised no longer suited the current economic situation and therefore tabled, discussed and then gazetted FIMA. However, following wide public debate and outcry, particularly on the sections in the Act dealing with preservation of pensions, we embarked on these consultation meetings to express the views of the public, whom we speak on behalf of and represent, hence the continuation of the consultations in Erongo,’ he said.

The workshop brings together representatives from various stakeholders such as the Namibia Financial Institutions Supervisory Authority (Namfisa), finance ministry and pension funds.

The meeting will also provide a platform for members of Parliament and stakeholders to share their views, experiences and recommendations on the proposed pension preservation clause and other provisions of FIMA.

‘Furthermore, stakeholders will also be required to identify risks and challenges associated with the implementation of the FIMA and develop strategies to address them and evaluate the effectiveness of the FIMA in promoting financial stability and protecting the interest of consumers.’

According to Ithete, the outcomes of the three-day workshop will inform the economics committee of the National Assembly of Namibia on the way forward.

Source: The Namibian Press Agency

Minister of Agriculture, Water and Land Reform, Calle Schlettwein, has directed the newly appointed Namibia Water Corporation Ltd (NamWater) board members to ensure timely implementation of capital projects aimed at sustainable water supply for all Namibians.

Speaking during the inauguration ceremony of the seven board members here on Monday, Schlettwein said they have a pivotal role to timely implement the government’s six key capital water projects under the Water Sector Support Programme (WSSP) during their three-year period of serving.

The projects include new purification plants in Rundu in the Kavango East Region, Katima Mulilo (Zambezi Region), and Oshakati in Oshana Region, plus rehabilitation work on the Omahenene to Oshakati Canal and rerouting of the canal around Oshikuku Settlement in Omusati Region.

Equally it includes the rehabilitation work on pipelines supplying rural communities, including the Ondangwa to Omutse Gwonime pipeline and Ogongo-Oshakati pipeline, the rehabilitation of the pipeline between Naute and Keetmanshoop in the ||Kharas Region as well as the rehabilitation of pipelines in the central coastal area.

‘NamWater has recently developed a new five-year strategy (2023-2028) to guide its operations and the Namibian Government has committed to supporting the water sector through the WSSP…In the last three years, progressive steps have been taken to adequately fund the sector, addressing ageing water infrastructure and developing new schemes to serve underserved areas,’ Schlettwein said.

The new board members are chairperson Luther Rukira, vice-chair Maenge Shipiki-Kali, Vivianne Kinyaga, Francis Heunis, Uda Nakamela, Fanuel Uugwanga and Matty Hauuanga.

Source: The Namibian Press Agency