The Nedbank Group says it will continue funding Namibia’s key economic sectors as part of its contribution towards the growth of the domestic economy.
The financial institution has so far invested over N$11 billion in the local property sector and other key projects across the country.
“Nedbank Namibia with the support of the Nedbank group remains committed to contributing and playing its role in the development of the Namibian economy,” said Nedbank Africa Regions Group Managing Executive Dr Terence Sibiya said on Wednesday during the announcement of the group’s results for the half year.
“We all are facing challenges and it is a complex environment we are in. We do face headwinds, but we believe from a Nedbank perspective, Nedbank Namibia in particular that we will be able to play our role in particular funding productive sectors such as infrastructure, energy, logistics, fisheries as well as agro processing to ensure that we contribute our part as a financial services provider in the sustainable growth and development of the Namibia economy and all its people.”
Sibiya said the Nedbank Group delivered an excellent financial performance for the six months ended 30 June 2022, with headline earnings for Nedbank Africa Regions, the grouping which Nedbank Namibia falls under, having increased by more than 100% to R574 million from R182 million for the period, delivering a return on equity of 15,9%, above the group’s cost of equity.
Nedbank Namibia Managing Director, Martha Murorua, said the local unit recorded an excellent performance across all the key matrixes.
“When we look at our key strategic value drivers, we have also made excellent progress on a strategic value driver of growth, productivity, risk and capital management. The group has maintained a strong final and liquidity position and remains well capitalised. We have also seen a growth in our client numbers and customer numbers and the Nedbank Money App continues to be highly rated on the Apple and Google App store. Our digital transaction volumes have increased significantly, with the Nedbank Money active users increasing significantly,” she said.
“What we are looking forward to in the second half is to focus on managing our operating expenses and growing our loans and advances and customer deposits. Obviously, we have secured a very strong pipeline on loans and advances particularly in the corporate and investment banking space and business segment, respectively.”
Murorua said the banking concern plans to launch the group’s Avo product, an application which will allow its Namibian clients to buy essential products and services online and have them delivered to their home as part of its new product roll out planned for the second half of the year.
Since its launch in app stores in June 2020, Avo has signed up more than 1,5 million users, up 4,6 times year on year, along with over 24 000 businesses registered and offering their products and services on this e-commerce platform, up by 37% year on year according to Nedbank Group figures.
“We are looking at an excellent second half and looking at bringing more products to the market and delighting our customers to remain relevant in our economy,” she said.
The Namibian economy, according to the Bank of Namibia (BoN), is expected to grow by 3.2% this year, driven by growth in the mining industry, particularly diamonds and gold, while sectors under secondary and tertiary industries are expected to register positive.
