In the last year, business registration in the country has declined by 34%.
This is for both close corporations and proprietary limited companies.
According to the Bank of Namibia’s quarterly report, registration of businesses serves as a leading indicator for future economic activity, and its decline indicates a slowdown in economic activity.
“The total number of business registrations, which in part represents business confidence, decreased. On a quarterly basis, the total number of registrations of new businesses decreased by 14.3%,” says the report.
For the period reported on, activity in the communication sector increased.
According to the report, this was due to an increase in the demand for minutes and data used by consumers to continue to venture into new applications and facilities.
“The activity in the communication sub-sector, as proxied by minutes used and internet data traffic used, increased.
The total minutes used and internet data used increased, year-on-year, by 9.4% and 14%, respectively,” reads the report.
In the last three months, the total minutes used and internet data traffic used decreased by 0.6% and 4.3%, respectively.
The increase in data roaming led to a rise in tourism activity.
Tourism activity, as proxied by the total airport passenger arrivals, recorded an increase year-on year during the quarter under review.
According to the report, total airport arrivals rose by 13.9% to a headcount of 119 923 during the second quarter of 2024, compared to the same quarter of 2023.
The increase was recorded for both international and regional arrivals.
“This suggests that Namibia continues to boast rising tourism attraction, driven partly by its quality service and the variety of tourism sceneries the country is endowed with.
These are augmented by a steady stream of business visits stemming from the exploration of oil and other minerals,” says the report.
Regional arrivals rose by 20.9% from a headcount of 51 287 over the same period.
“Quarter-on-quarter, the total number of tourist arrivals increased by 21.9% from 98 360 recorded during the preceding quarter of 2024,” reads the report.
According to the central bank, the increase was largely due to seasonal factors.
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