Macroeconomic Fundamentals and Financial Performance of Namibia Listed Companies: A Sectoral Analysis

This paper aimed to analyse the effects of macroeconomic fundamentals of gross domestic product and consumer price index on the financial performance of Namibian listed companies and determine if the underlying effects differ across sectors. A longitudinal research design was used to analyse panel data from 11 firms between 2010 and 2020. The study was conducted across three identified sectors - Banks, Finance & Credit Services, Food Retailers and Wholesalers, and Household Goods and Personal Goods. The results support the hypothesis that macroeconomic fundamentals positively affect the financial performance of various firms. However, the magnitude differs across various industries. In the Household Goods and the Food Retailers and Wholesalers sectors, financial performance is significantly influenced by the consumer price index percentage change more than economic growth. Nevertheless, the Banking sector's financial performance is more sensitive to changes in economic growth than the consumer price index.