Business spending perks up slowly

Indicators suggest 'bottoming out'

05 December 2018 | Sakenuus
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.

Credit

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.

Soortgelyk

 

Honderde miljoene vir veevoer nodig

17 ure gelede | Landbou

Ronelle Rademeyer - Die 2019 droogte is ‘n omvangryke ramp en ten minste N$170 miljoen is nodig om net 5 persent van die nasionale veekudde...

Min of geen handboeke vir nuwe leerplan

17 ure gelede | Onderwys

Henriette Lamprecht – Óf drupsgewys óf glad nie. Dit is volgens verskeie skole oraloor die land die huidige stand van handboeke vir die nuwe leerplan...

Regional council must account for vandalised buildings

17 ure gelede | Infrastruktuur

AUSSENKEHR – The //Kharas Regional Council must account for government buildings that are vandalised and left to become white elephants, the minister of urban and...

Swapo beslis dorpsraadslede se lot

17 ure gelede | Politiek

Dorpsraadslede van Okahandja en Rundu moes Maandag ure lank by Swapo se hoofkantoor in Windhoek wag om te hoor wat hul lot is. Verskeie nasionale...

Groeiende stad druk rioolstelsel

17 ure gelede | Infrastruktuur

Elvira Hattingh - Die Windhoekse munisipaliteit erken sekere rioolpype in die stad moet opgradeer word om die groeiende getal stadsbewoners te akkommodeer. Terselfdertyd beloof hulle...

Weer vir 19 Februarie 2019

17 ure gelede | Weer

WEERWAAK: Bloedige hittetoestande word vir die res van die week in die binneland verwag.BINNELAND: Mooiweer en bloedig warm in die ||Kharasstreek. Elders sal dit gedeeltelik...

Gammams staan steeds stil

17 ure gelede | Regering

Elvira Hattingh – Windhoek se munisipaliteit (CoW) sê hul Gammams-watersuiweringsaanleg staan steeds stil nadat swaarbrandstofolie meer as twee weke gelede in die stad se rioolstelsel...

‘Vroue is sterk’

17 ure gelede | Maatskaplik

Mariselle Stofberg – TrueKrav Namibia het Donderdag, in samewerking met die Namibiese Vrouevereniging en Kosmos, ’n praatjie oor geslagsgeweld in die hoofstad aangebied.TrueKrav bied...

Namcor wil vry van sekere wette wees

17 ure gelede | Energie

Elvira Hattingh - Namibië se Nasionale Petroleumkorporasie (Namcor) het ‘n aansoek by die Namibiese Kompetisie-kommissie ingedien om vir die volgende 10 jaar vrygestel te wees...