(3 Minutes Read)
The Exchange Traded Fund tracking local government bonds is listed on the Namibian Stock Exchange and in South Africa and has jumped over 20% in U.S. dollar terms since Portugal-based Galp’s discovery in April that the Mopane field could hold at least 10 billion barrels of oil. Since then, there has been interest from at least 12 other oil majors
The discovery of increased reserves of crude oil in Namibia has sparked interest in Namibian assets, with an index fund tracking local government bonds poised for its biggest annual jump on record.
The Exchange Traded Fund tracking local government bonds is listed on the Namibian Stock Exchange and in South Africa and has jumped over 20% in U.S. dollar terms since Portugal-based Galp’s discovery in April that the Mopane field could hold at least 10 billion barrels of oil. Since then, there has been interest from at least 12 other oil majors.
The fund is on track for its biggest annual gain – nearly 12% in U.S. dollar terms. Meanwhile, an ETF tracking the closely watched JPMorgan emerging markets bonds index has gained 3.6% year-to-date.
Yields on local sovereign bonds have dropped further following the discovery, with those on bonds maturing in 2037 declining around 150 bps since April, while those on papers maturing in 2050 are down around 200 bps.
The southwest African nation has garnered attention from major international energy companies following several major discoveries in recent years along its coast, although the country has not yet produced any oil or gas. TotalEnergies and Shell say they expect production in 2029-2030.
Read Also:
https://trendsnafrica.com/namibias-copper-plant-restarts/
Against the backdrop of Namibia’s economic potential following its oil discoveries, attention will be paid to any changes to the monetary policy after a presidential election due at the end of the year.
