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New Era Newspaper Tuesday March 6, 2018

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6 Tuesday, March 6 2018 | NEW ERA FEATURE Who owns Namibian banks? The collapse of Namibia’s Small and Medium Enterprises Bank (SME Bank) and the acquisition of EBank by First National Bank have probably generated the most publicity for Namibia’s banking sector in decades, writes Tileni Mongudhi. The last time major movement happened in Namibia’s banking sector was around 2003 when FNB merged or absorbed Swabou. With the banks in Namibia? Considering that banking is a highly regulated sector and transparency is one of the over-emphasised terms in the sector, The intricate web with only information readily available to the public. No bank was formally contacted for information and the majority of the information in this article either emanates from basic desktop research, the internet and information in the various bank’s annual reports, if they were available. Bank Windhoek Bank Windhoek is probably the most diversely-owned bank in Namibia and has scored very high when it comes to being a broad-based economic empowerment company in Namibia. Perhaps calling it the only member of the top four banks to be wholly Namibian owned is an understatement. after lawyer Koos Brandt led a consortium of Namibian businesspeople to buy out what use to be the Namibian chapter of Volkskas Beperk (Afrikaans for People’s Bank). Volkskas Beperk was an apartheid-era Afrikaner bank The bank is fully owned by Capricorn Group Holdings, which has wide-ranging shareholders in Namibia. Last year, its asset Capricorn Group Holdings is 26 percent owned by the state-owned Government Institutions Pension fund (GIPF), which is responsible for managing the pension money for all civil servants in the country. About mic Financial Services Holdings, which is a company owned by Mine Workers Union of Namibia (MUN) through its Mine Workers Trust, 20 percent belongs to a wide range of Namibians, one of whom The Southern Times understands is top businessman and owner of the Indongo Group of companies, Frans Aupa Indongo, through a family trust. percent, belongs to Capricorn Investments former Bank Windhoek chairman Koos Brandt and current Bank Windhoek chairman, Johan Swanepoel. Other notable black Namibian businessmen are Ben Hauwanga of the BH Group of Companies and Ben Zaaruka, who started the Benz Building Supply empire from scratch. Other prominent Namibians known to have been shareholders of the group are Windhoek’s Prince Shiimi. About 3.2 percent of the shares are allocated to the group’s employees’ trust. Apart from owning Bank Windhoek, the Capricorn Group Holdings also owns Namib Bou, Capricorn Unit Trust Management Company and Capricorn Asset Management. It also has a shareholding in Namibia’s non- In the SADC region, Capricorn Group Holdings has footprints in the Botswana and Zambian markets. In Botswana, the company Investment Holdings Botswana Limited, Capital Holdings Zambia Plc, which owns First National Bank of Namibia (FNB) First National Bank of Namibia Limited is by FNB Namibia Holdings, which in turn is shares have also been allocated to a black empowerment group in Namibia, with one percent allocated to black employees and four percent to a black economic empowerment consortium. Notable businessmen in the BEE group are Mwahafar Ndilula and Haikali. FNB Namibia Holdings also has a Company Namibia Limited. The group also and FNB Namibia Unit Trusts Limited. FNB recently concluded a transaction to purchase launched Ashburton Investments in February Standard Bank Namibia Bank Group Limited, registered and listed in South Africa and dual-listed on transferred its ownership to Standard Bank Standard Bank Holdings Limited acts as an shareholding in Standard Insurance Brokers Namibia Limited, a short-term insurance a long-term insurance broker. The group also owns Standard Bank Namibia Limited. Its Namibia’s employee’s trust in the name of saw industry chatter about Standard Bank introducing some form of Namibianisation scheme to allow for Namibians to acquire a shareholding in the entity but such information seemingly remains a rumour. NedBank Namibia Nedbank Group Limited is the South African controlling shareholder of NedNamibia interest in Nedbank Namibia Limited and its subsidiaries, NedProperties Limited, NedCapital Namibia Limited, NedPlan Insurance Brokers Namibia Limited and Coversure Limited. Nedbank Namibia holds a percent in Ten Kaiser Wilhelm Strasse Limited

Tuesday, March 6 2018 | NEW ERA FEATURE 7 The grand Inga betrayal …SA and DRC dump partners to forge ahead with Inga III dam and 50 percent in Walvis Bay Land Syndicate Limited. The company’s website offered little to no information about its ownership structures or annual report. Publicly available before tax of just over R300 million and has an asset base of R16 billion. In 2006, Old Mutual announced that it has concluded a BEE transaction worth N8 million. The deal was supposed to include black Namibian ownership in Old Mutual Namibia, Nedbank Namibia and Mutual and Federal Namibia. The total shareholding into those three entities was projected at 12.64 percent. At the time of the announcement, the more than 250, 000 black Namibians, including employees, trade unions, women’s organisations and church groups, along with business partners selected from across the country. It is not clear what transpired with the said deal. Trustco Bank Not much information could be found on Trustco Bank’s website regarding its Trustco Bank falls under the Trustco Group International, which is a Namibian company built by businessman Quinton van Rooyen, with interests in property, education, insurance, ICT and mining. In 2014, Trustco acquired ownership of of small businesses who are not considered bankable by the mainstream banks in the country. Timo Shihepo Windhoek South Africa risks the wrath of other Southern African Development Community (SADC) countries after it has emerged that the regional economic powerhouse allegedly cheated its neighbours out of the US billion Inga III power project in the Democratic Republic of the Congo (DRC). Over a decade ago, South Africa, Namibia, Botswana and Angola signed an Inter-Utility Memorandum of Understanding and an Inter- Governmental Memorandum of Understanding with the DRC to develop the Inga III power project and to generate and transmit power through the western corridor to those countries. The Inga III project is part of the massive US billion Grand Inga Project, which once fully implemented, would be able to produce about 40,000 megawatts of power to light up the entire SADC region and half of the African continent. Two existing projects, Inga I and II, have been in operation since 1972 and 1982, respectively, and generate nearly 1,800 MW of electricity. Despite having signed the regional pact, South Africa is said to have gone behind its neighbours’ backs to sign its own Inga project agreement with the DRC, leaving them to count their losses. “That project is no longer under our control. I raised the issue last year in Botswana. Somehow we have been done under. I don’t know by who. Diplomatically speaking, we lost a pole position in the command of that project. But it seems like we were just pushed out through the back door,” Obeth Kandjoze, who until a fortnight ago was Namibia’s energy minister, told The Southern Times. The DRC’s decision to partner South Africa has not only angered other SADC countries but is also said to have irked the World Bank, which had undertaken to fund the project. The World Bank is said to have withdrawn its US.1 million grant towards the project due to DRC’s decision to take a different strategic direction to that agreed between the bank and the DRC government in 2014. The World Bank had initially committed to providing the funds because the South Africa, together with the DRC, is said to have even managed avoid the SADC secretariat in the matter. In a stalling the initial agreement, the DRC in 2009 wrote to the SADC secretariat informing it that the country was no longer willing to provide the region with electricity under the 2005 agreement. Since 2009 and until 2014, the SADC secretariat was still waiting for the DRC to provide them with new terms. It, however, became clear that no new terms were forthcoming after South Africa’s cabinet in 2014 approved its own plans with the aim of importing electricity from the Inga dam. When asked to elaborate more, Kandjoze could not hide his disappointment. “We have sent our people to support the DRC militarily. Countries assist each other through other means. We assisted these guys during their time of need when there was war. “We spent a fortune. You see, we are politicians and we have to sanitise what we say because there is a future. You don’t throw salt in the eyes of those that someday would roll out big rocks out of your way, so you sanitise that message. “We acknowledge the fact that some political developments have happened and the project now has a new focal point and command centre and that doesn’t seem to be us,” he said. Contacted for comment, the DRC Ambassador to Namibia Anastas Kaboba Wa-Kimba said: “Yes, I know about the Inga Dam project issue but I cannot comment now because the Energy Minister has already spoken to you can go ahead and publish what you have gathered, then next week we can have another comprehensive interview.” The agreement signed by South Africa and the DRC in October 2014 allows South Africa, together with the DRC, to develop the project, with the help of a Chinese consortium. Part of the agreement between the countries is that South Africa would power the villages and mines near the Inga Dam. In return, South Africa would get 2,500 megawatts and would sell any surplus to Angola, Botswana, Namibia and Zimbabwe. Meanwhile, Pretoria seems to have a guilty conscience for bundling its neighbours out of the Inga project. During the SADC Energy Summit in Swaziland last year, the then South Africa energy minister, Mmamoloko Tryphosa Kubayi-Ngubane, reacted angrily when asked by The Southern Times to comment on the matter. Instead, she directed that the questions be sent to her via email. But two hours later, her personal assistant approached the reporter and remarked that “the minister will not be responding to your questions. If that’s what they sent you from home to come do here, then tell them that we won’t be answering those questions”. Also during the summit, the DRC energy minister Jean-Marie Ingele Ifoto said his country was in the process of developing the third phase of the Inga dam project but told this reporter that he was not comfortable answering more questions about the project in English. Approached for comment, the SADC secretariat’s acting director of infrastructure and services, Phera Ramoeli, was diplomatic in his answer saying that it was still a SADC project. “Yes, there have been some delays but what I can tell you is that the last time it was discussed, it was still a SADC project. The DRC was still working with us. We are still discussing how the region –The Southern Times Bank BIC Bank BIC is one of the newest entrants into the Namibian banking space. Little information is offered on its website. It has been widely reported that Africa’s richest woman, Isabel Dos Santos, owns 42 percent of the parent company Banco BIC Angola, which is also in Portugal and Cape Verde. The Southern Times understands that Namibian shareholding in Bank BIC is at about 35 percent, with banker Lindsay Crawford said to be the main Namibian shareholder. Letshego Bank Another newly established bank in Namibia is Letshego Bank, which many Namibians only its webpage, the bank is 85 percent owned by Letshego Holdings Limited, a Botswanabased company. – The Southern Times

New Era

New Era Newspaper Vol 22 No 167