The Nedbank Group says it is actively considering strategies to localise ownership of its operations as it seeks to foster greater inclusivity and comply with the financial sector charters of the countries in which it operates, including Namibia.
The prospect of potential transactions includes public offerings, listings, and local collaborations.Â
“Across various countries across the region, some have everything to do with financial sector charters that implore us to increase local ownership and also how we work with communities and support local ownership is something that is definitely top of mind for ourselves and it is a discussion that’s currently underway inconclusive at this point,†Nedbank Africa Group Managing Executive Terence Sibiya said on Tuesday.
He said while the discussions are still ongoing and inconclusive, the group remains resolute in its dedication to fulfilling legislative mandates and furthering its investment in societies and communities.Â
“We not only do it to meet legislative requirements, but we do it because we remain firmly invested in the communities and in the societies which operate. So, it’s something that is a work in progress and at the appropriate time, the appropriate announcements will be made in the various economies where we participate,” he said during an announcement of the group’s interim results.
The Ministry of Finance in November 2008 introduced the Namibian Financial Sector Charter, a voluntary framework that establishes the principles upon which empowerment will be implemented in the financial services industry in Namibia.
The objective of the charter is to facilitate the transformation of the Namibian financial sector and to bring about tangible benefits for Namibians.
The Bank of Namibia has thrown its support around proposed measures to reduce foreign ownership in commercial banks, saying decision making at financial institutions should resort with locals.
Finance and Public Enterprises Minister Iipumbu Shiimi recently tabled planned amendments to the Banking Institutions Act, which once passed, will place a cap on the ownership of foreigners in local banks.
The central bank Governor Johannes !Gawaxab said it was time for decision making to be done in Namibia.
“We want the banking sector system that works for Namibia, we want decision making to be centralised and happening in Namibia,†he said.
Namibia’s banking sector is currently dominated by South African banks which hold significant shareholding in local operations, despite some being listed on the Namibia Stock Exchange, with the exception of Bank Windhoek, which was founded locally and still maintains a large Namibian shareholding.
