Former Standard Bank Namibia Chief Executive Officer Vetumbuavi Mungunda has emerged with a 36 % stake in Schoemans Group.
The former banking executive, who is now fronting Ombu Capital, an investment company he founded in 2021 with a focus on agriculture, tourism, technology and manufacturing, confirmed the development and has also emerged as the chairman of the Schoemans Group.
“We have started recently only, but we are invested in the iconic Schoemans Group, and we have been working with the group to recalibrate the group strategy toward ‘future-ready digital technology,” he told The Brief.
“We are excited at the work we have done thus far in rethinking the Schoemans businesses with a futuristic orientation. We look forward to continuing to work with our partners, Theo Schoeman & Henk Schoeman, to continue the great legacy of this family business and deepen the group’s transformative impact in respect of digital technology and office business solutions.”
Mungunda said his Namibian focused investment company’s decision to focus on specific sectors was due to present opportunities.
“Both agriculture and tourism combined supports close to 70% of Namibians, but produces only 5-8% of economic output. This means that these sectors are under-developed both in terms of productivity and innovation, and thus provides opportunities for significant innovation, disruption and productivity growth,” he said.
Mungunda said his investment vehicle will also target Namibia to invest in start-ups, as most financial institutions shy away due to perceived risks in the investment.
“Investors have always been careful about investing in start-ups, and Ombu Capital will be no different. Our approach will be to mitigate the risks associated with investing in start-ups through more active participation in the strategic direction of the investee companies, as well as the availing of key technical, business and advisory support services as part of the business arrangement with the investee companies,” he said.
“Ombu Capital is a business services company established to nurture innovation and entrepreneurship through funding and active business mentorship and technical business advisory services to the investee companies.”
He said the company was engaging with key stakeholders in the financial services sector, to look at a vehicle for providing solutions to businesses in financial distress through providing funding needed to implement necessary business turn-around and rescue initiatives that would avoid liquidation and help the businesses grow and reach their full potential.
“These engagements are still in early stages, but there is a belief that this intervention will provide needed comfort to all involved including the banks, as debt funders, and the business owners. Such interventions to succeed will require individuals with experience in business strategy, business repositioning and restructuring as well as the needed expertise to engage with the banks, suppliers and employees in the restructuring of the finances of the business. We believe this is a needed intervention in our economy,” Mungunda said.
