Nedbank Namibia gears for localisation
Banking group assessing localisation processes at other commercial banks
Nedbank Namibia is the only commercial bank among the traditional top four banks that does not have any direct local ownership, save for its dual listing on the Namibia Stock Exchange.
Nedbank Group Limited (NGL) says it is not opposed to localising a portion of its local operations and has initiated talks with the Bank of Namibia (BoN) about its intent to cede a part of its ownership to Namibians.
Nedbank Namibia is the only commercial bank among the traditional top four banks that does not have any direct local ownership, save for its dual listing on the Namibia Stock Exchange, which allows local investment managers participation in NGL via share trading.
NGL executive for Africa, Terence Sibiya, said the bank is in touch with the BoN, which is currently championing the cause for increased localisation of commercial banks, and was consulting on the New Equitable Economic Empowerment Framework (NEEEF).
“We are in constant touch with the Bank of Namibia and other relevant bodies like the Namibia stakeholders, like NEEEF, and key stakeholders within the Namibian market on the journey to localisation,” Sibiya said.
Engagement ongoing
The banking group was also assessing how previous localisation processes were driven at other commercial banks operating in Namibia, Sibiya explained.
“We have engaged over the years in the legal aspect, recognition of prior transactions done, the format and shape that would take place, the balance sheet structures. There are a whole number of levers that are brought into consideration when we discuss localisation,” he said.
The localisation of Nedbank Namibia would, however, not only be driven by a need to comply with local regulatory requirements but would also need to satisfy NGL’s other shareholders, Sibiya pointed out.
“From the perspective of the group, those discussions are ongoing, and at the appropriate time, we will be able to release a statement on our position on localisation, which we support, from the basis upon which it is necessary, and at the same time, it must be done at the right time in the right way, and for the benefit of not only local shareholders, but other shareholders, seeing that we are also listed on the Johannesburg Stock Exchange (JSE),” Sibiya said.
Local objectives
In 2009, the ministry of finance launched the Financial Sector Charter, a voluntarily-adopted transformation charter.
Among its outcomes is that the object is to achieve substantial change in the racial and gender composition of ownership, control and management structures in skilled occupations of current and new enterprises in the financial sector.
More recently, the BoN set a legal framework reserving a minimum threshold stake of 25% in all commercial banks for locals.
Nedbank Namibia is the only commercial bank among the traditional top four banks that does not have any direct local ownership, save for its dual listing on the Namibia Stock Exchange, which allows local investment managers participation in NGL via share trading.
NGL executive for Africa, Terence Sibiya, said the bank is in touch with the BoN, which is currently championing the cause for increased localisation of commercial banks, and was consulting on the New Equitable Economic Empowerment Framework (NEEEF).
“We are in constant touch with the Bank of Namibia and other relevant bodies like the Namibia stakeholders, like NEEEF, and key stakeholders within the Namibian market on the journey to localisation,” Sibiya said.
Engagement ongoing
The banking group was also assessing how previous localisation processes were driven at other commercial banks operating in Namibia, Sibiya explained.
“We have engaged over the years in the legal aspect, recognition of prior transactions done, the format and shape that would take place, the balance sheet structures. There are a whole number of levers that are brought into consideration when we discuss localisation,” he said.
The localisation of Nedbank Namibia would, however, not only be driven by a need to comply with local regulatory requirements but would also need to satisfy NGL’s other shareholders, Sibiya pointed out.
“From the perspective of the group, those discussions are ongoing, and at the appropriate time, we will be able to release a statement on our position on localisation, which we support, from the basis upon which it is necessary, and at the same time, it must be done at the right time in the right way, and for the benefit of not only local shareholders, but other shareholders, seeing that we are also listed on the Johannesburg Stock Exchange (JSE),” Sibiya said.
Local objectives
In 2009, the ministry of finance launched the Financial Sector Charter, a voluntarily-adopted transformation charter.
Among its outcomes is that the object is to achieve substantial change in the racial and gender composition of ownership, control and management structures in skilled occupations of current and new enterprises in the financial sector.
More recently, the BoN set a legal framework reserving a minimum threshold stake of 25% in all commercial banks for locals.
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