The Namibia Stock Exchange listed ICT Infrastructure Company; Nimbus plans to spread its wings into neighbouring countries.
“Management is currently investigating the merits of investing in various opportunities within Namibia and neighbouring countries. These opportunities include a tier three data centre; fibre to the home; and a Long-Term Evolution (LTE) rollout, back to back with a MVNO (Mobile Virtual Network Operator),” the company said in its interim results for the six months ended 31 August.
Nimbus said the potential investments, if financially viable, are anticipated to be funded from the rights issue proceeds combined with gearing from a financial institution.
Commenting on economic prospects, Nimbus said the Angola economic activity is projected to continue recovering, largely driven by the oil price increase and fiscal consolidation.
Nimbus said the improved spending power of the Angolan consumer is expected to have a positive impact on the Namibian economy.
The Namibian economy has contracted for nine consecutive quarters. The contraction is driven mainly by weak performance in construction, wholesale and trade, manufacturing and real estate.
“Weak growth in construction includes base effects resulting from completion of major mines and the fiscal consolidation stance, while wholesale and retail suffer from weaker spending power of consumers and government and weaker growth in credit extension. The real estate sector is affected by the slowdown in the housing market due to the Angola effect, weaker spending power and credit extension policy.”
Nimbus owns a 51.4 percent stake in Paratus Telecom, which has offices in Zambia, Mauritius, South Africa and Botswana and Mozambique. Apart from officially operating in these countries Paratus is delivering services in more than 22 African Countries, making the group a pan-African telecommunications operator.
The move into Africa unlocked significant potential in the Paratus Group with collective revenue growing from US$9 million in 2012 to US$65 million in 2017.