SBN Holdings Limited REPORT TO SOCIETY 2020 SBN Holdings Limited REPORT TO SOCIETY 2020 The unique nature of Namibia Namibia is a rugged country, a country of contrasts. From prehistoric geological formations to unique game parks like the Etosha Pan, and the desolate Skeleton coast – a graveyard for errant ships – it offers international travellers unique experiences found nowhere else on the globe. Tourism is therefore a significant contributor to Namibia’s gross tourism revival initiative was introduced in September 2020 domestic product (GDP). During 2019, around 1.6 million people to provide some relief to the sector going forward. visited Namibia, helping the tourism sector contribute 10.9% of the country’s income (N$21.9 billion). In 2020, however, the The equally essential logistics industry recorded average annual prosperity of this industry, which offers employment to more sector growth of 15% since 2007, contributing about N$17 billion than 47 000 people and indirectly supports about 120 000 annually to GDP. The busiest areas are the three corridors others, experienced a significant Covid-19 related setback. connecting Walvis Bay with other Southern African Development Community (SADC) countries, namely the Walvis Bay-Ndola- Hotels and restaurants, a key component of the tourist Lubumbashi-Development Corridor; the Trans-Cunene and Trans- industry, GDP contribution declined by -51.4% in real value Kalahari corridors. Walvis Bay, the country’s major commercial added during the second quarter of 2020. port, handled 93.1% of total cargo tonnage transitioning to and As an active participant in all sectors of the local economy, from neighbouring countries in 2017. Standard Bank Namibia (SBN) supported the industry through SBN supported customers in the logistics industry by advising on several interventions, including capital and interest repayment the reconfiguration of supply chains, thereby conserving capital, relief of up to 12 months to its clients in the tourism sector. mitigating risks and stabilising the supply chain. In addition, As travel restrictions eased towards the end of 2020, many bespoke solutions were created for major customers to enable tourism operators reported that bookings cancelled during 2020 them to survive the loss of business and mandatory lockdowns had been reinstated for the upcoming year. A government-led that were part of the global response to the Covid-19 pandemic. SBN HOLDINGS LIMITED Report to society 2020 1 Introduction IFC The unique nature of Namibia Contents 2 About us 3 Our reporting suite 4 Message from the Chairman and Chief Executive Who we are 8 About us 10 Namibia’s economy at a glance 12 Driving Africa’s growth 14 Our integrated approach to value creation 16 Building the future 20 Our integrated pillars of operation Creating value 24 Measuring our progress 26 Leadership review 32 The economic impact of Covid-19 36 Putting our customers first 40 Supporting new ways of work 48 Compliance and regulatory affairs 56 Embracing a culture of innovation 60 Always on, always secure 64 Delivering financial sustainability Our SEE impact 68 Managing our SEE activities 70 Our social impact 74 Our economic impact 78 Our environmental impact 80 Namibian Financial Sector Charter 84 Governance and ethics Additional information 88 Reference details IBC Contact information 2 INTRODUCTION About this report Reporting to our stakeholders SBN Holdings Limited (SBN Holdings or the group) has been an essential part of Namibia’s financial landscape for 105 years and, during 2019, listed on the Namibian Stock Exchange, embedding the group as a truly Namibian institution. Listing in 2019 On listing, 81 million SBN Holdings shares, in the form of 22 471 910 subscription shares and 58 668 539 public shares, were offered to the market. This initial public offering raised N$722.2 million. Scope Although the listing, the largest yet on the Namibian Stock Exchange, has broadened the relationship between the group and Namibians, enabling many to be both customers and investors in their local financial service provider, several guiding principals have not changed. The long-term growth and success of SBN Holdings is linked to the wellbeing and economic development of the communities in which we operate. We believe that all Namibians have a right to understand our business and know how we conduct our operations across the country. Ultimately, we draw our success from the people we serve. With their support, and the value-added services and solutions we offer, we are committed to moving Namibia forward. We will continue to contribute to the growth of the country and be a financial services group that serves the interests of our diverse society. As a leading multifaceted contributor to Namibia’s economy, our material focus areas take into account the issues that have the potential to impact the local economy and its ability to grow. By their very nature, these focus areas include events that impact on the political and economic stability of the nation and include the decisions taken and implemented at a policy, regulatory, and statutory level. Our material focus areas include issues that cover the interests of SBN Holdings and its stakeholders. They are linked to the value drivers that help the group to measure strategic progress and to identify and develop appropriate management and strategic priorities. Our key performance indicators (KPIs) are aligned to our material focus areas. Where it is feasible, historical data is used to broaden the reporting of indicators by showing trends. KPI tables are presented at the The listing achieved several objectives for the group, including: beginning of each material focus area. However, • Broadening the ownership of SBN Holdings by offering local people and internal targets measuring progress against the KPIs institutional investors the opportunity for direct participation in the are excluded from this report. equity growth and income streams of the group. • Extending the broad-based economic empowerment (B-BEE) Reliable environmental data is crucial to our success ownership of SBN Holdings by inviting broader participation in the and that of our clients. We continue to improve our future of the group. information gathering process, with significant effort being invested in centralising, understanding and • Creating liquidity to further open opportunities for the Purros Staff interpreting data to ensure the integrity and accuracy Investment Scheme to benefit through the prosperity of the group and of our reporting. help build wealth for our people. • Increasing the capital base of the group to take advantage of strategic Our supply chain is not considered to have material expansion and diversification opportunities as they arise, allowing the environmental risks and is, therefore, not covered in group to make targeted acquisitions to enlarge our offerings. this report. SBN HOLDINGS LIMITED Report to society 2020 3 AR Annual report. The annual report The SBN Holdings Limited annual report is the group’s primary report to stakeholders. It is a comprehensive document that Our reporting provides information on our integrated pillars of operation and the main achievements within each operational area. suite It also extensively reports on the implementation of the group strategy and Our stakeholders represent related material focus areas, complemented by insights into our financial challenges and the diversity of Namibian accomplishments, corporate governance society. It is natural that these activities and other core activities during the year to ensure that a comprehensive stakeholders have various overview of the group and its activities for interests and require different the year are presented to stakeholders. information from the group. To engage with all interested parties as effectively as RTS Report to Society. possible, we produce two reports annually. The report to society (this report) This, our fourth report to society, provides insights into how the group created value in 2020. It includes an overview of our corporate social investment (CSI) and environmental programmes and also discusses our support for the small, micro and medium-sized businesses (SMMEs) in Namibia. This report expands on how we worked in an integrated manner during 2020 to fulfil our purpose and help create a sustainable future for our business, our employees, our stakeholders and Namibia as a whole. Navigational icons The following icons are used throughout this report to improve usability and demonstrate the integration of information across our reporting suite RTS Read more in All our reports and latest financial results this report. information is available online. We urge our stakeholders to make use of our reporting site at https://www.standardbank.com.na/ to assist in AR Read more in our the reduction of our carbon footprint. annual report. Feedback We encourage our stakeholders to share their views with us. If there is something you would like to know or feedback that you would like to share, please contact [email protected] 4 INTRODUCTION Message from the Chairman and the Chief Executive The Covid-19 pandemic has not found Namibians wanting. HERBERT MAIER (CHAIRMAN) AND VETUMBUAVI MUNGUNDA (CHIEF EXECUTIVE) Official statistics about the Covid-19 government, the public and private Yes, many things have changed. We have pandemic that swept across the globe sectors and indeed all levels of society had to adapt the way we live, socialise, can be deceptive where