Chairman predicts tough financially year

Nambawan Super chairman Anthony Smare says 2020 will be tough financially as a result of factors affecting the world market.
“The coronavirus, we don’t know what the impact is going to be but we have seen the impact globally already where stock markets have fallen over the last week or so due to concerns,” he said. Smare said Italy was in a state of lockdown right now.
“China was in a state of lockdown and they are talking about other precautionary measures to be put in place,” he said.
“That’s going to impact us offshore and impact the commodities we export.
“There will be less demand.”
Smare said the oil price war between Russia and Saudi Arabia was also making things worse.
“When oil gets down to between US$20 (K68) and US$30 (K120), it means companies in the country that export oil and gas make less money, which means that the Government earns less tax,” he said. He said the Government was already under a lot of pressure.
“We will see less money spent on goods and services, and less money in the economy.
“You will also see a lot of companies start conserving cash.” Smare said the fund hopes to make a positive return in the next 12 months.