Macro Outlook and Financial Performance

2023 Macro Outlook - The beginning of the end of the pandemic and pent-up consumer demand provide a positive backdrop, however geopolitical developments are a risk Global growth to remain above trend, financing conditions to tighten and inflation to fade¹ • • Global growth 2.9 %, sub-Saharan Africa 3.8% and Namibia 3.2% Sub-Saharan Africa Global financial conditions could tighten more if global inflation pressures persist longer-than-expected leading to higher borrowing costs and a higher risk of debt distress in many SSA economies. SSA food systems, already stressed by elevated costs of farming inputs and weather-induced production losses, remain particularly vulnerable to further disruptions that could lead to surging food prices and increased food insecurity. This together with increased frequency and severity of climate change induced weather shocks could further disrupt agriculture and delay large infrastructure and mining projects in some countries. 20 • Much broader and sustained economic recovery, subject to the external environment • Real GDP growth of 4.2% in 2022 and 3.2% in 2023 before moderating to 2.9% in 2024 • Inflation expected to moderate over the year, averaging 5.3% and 4.3% in 2023 and 2024 respectively • Namibia • Gradual rate hike cycle; +25bps in Feb-23, expect a further 25bps hike in 2023 A commitment to fiscal sustainability, but require economic diversification policy and structural reforms to drive sustainable growth 1 Subject to developments in Russia and Ukraine and the broader implications of actions taken, 2 Ministry of fiancé Economic Outlook, (February 2023) IMF global economic outlook (Jan 2023) 12 Standard Bank

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