DOCSLIB.ORG

2020 Integrated Annual Report 2020 INTEGRATED ANNUAL REPORT 2020 INTEGRATED GROUP at a GLANCE We Are Capricorn

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2020 Integrated Annual Report 2020 INTEGRATED ANNUAL REPORT 2020 INTEGRATED GROUP at a GLANCE We Are Capricorn 2020 Integrated Annual Report 2020 INTEGRATED ANNUAL REPORT 2020 INTEGRATED THE CAPRICORN BRAND STORY From the beginning, the stars have filled Africans with wonder. Our ancestors did not just gaze upon their beauty as they stared up at the night sky. They used the constellations of stars for the measurement of time, seasons, cycles, and direction. One such constellation is Capricornus, called by ancient people “the southern gate of the sun”. It is from this constellation that the Tropic of Capricorn got its name many centuries ago, when the sun was in the Capricornus constellation at the time of the southern solstice. All lines of latitude have geographical relevance, but to the people of southern Africa, the Tropic of Capricorn is more. Spanning across the centre of Namibia, it ties together the lands of southern Africa, receiving the brightest rays of the sun on the summer solstice. It signals the time of abundance with flourishing offerings from nature. We took our inspiration from the Tropic of Capricorn, the band that symbolised abundance and created positive change for the people. Creating positive change is what every single member of our organisation strives to achieve every day. To find innovative ways in which to bring together our customers and their aspirations. We passionately believe that by connecting the people of this region to opportunity and prosperity, we can help taking the region closer to GROUP A GLANCE AT realising its greatest self. Our humble beginnings in Windhoek were born out of a tenacious spirit of entrepreneurship. Since then, our journey has led us on a path of achievements, growing us beyond Windhoek and Namibia. Rooted in the pillars of “W” for Windhoek where it all began, the three lines of our logo represent our values of being open, dedicated and inspired. We are proud of our logo that reflects our legacy and how we got to where we are now. And as before, we will always achieve our successes by holding true to our values. Along with this, we will continue to reach for the stars, Only now we seek them in the eyes of the ones whose lives we’ve made better. Not only are we inspired by the dreams of those who call this beautiful part of Africa home, But we want to make these dreams a reality for them. The future shines brightly, and we will journey towards it as one. We Are Capricorn. Group at a glance 4 Five-year financial overview 8 Investment case 9 Group chairman’s message 10 Group structure and reporting scope 14 Our stakeholders and how we create value 19 Group CEO’s report 23 Financial director’s review 31 Strategy and material matters 41 Governance report 55 Risk report 69 Remuneration report 90 Board sustainability and ethics report 96 Glossary of terms 103 1 From the beginning the stars have filled Africans with wonder. This integrated annual report (“the report”) is a reflection on the value created by Capricorn Group Ltd (“the Group” or “Capricorn Group”) during the financial year from 1 July 2019 to 30 June 2020 (“the year”). The report is aimed primarily at providers of financial capital. It also provides a holistic and stakeholder-oriented view of the environmental, social and governance (“ESG”) aspects of the Group’s activities and performance. The financial and non-financial information contained in this report relates to the entities that constitute the Group, as set out on page 14 . The global COVID-19 pandemic should be considered when comparing information in this report to the previous year. The pandemic continues to have a far-reaching impact on the Group’s business activities, stakeholders and performance prospects. The United National Development Programme describes it as the defining global health and socioeconomic crisis of our time and the greatest challenge the world has faced since World War II. The principle of materiality guided the selection of content for this report. Read more about the process we followed on page 42. Additional information is available online at www.capricorn.com.na/Pages/Reporting-Centre.aspx. For more information or feedback on this report or any other elements listed above, contact Marlize Horn on [email protected] or +264 (61) 299 1226. Our financial reporting adheres to: • King IV Report on Corporate Governance™ for South Africa, 2016 (“King IV™”)1 • Companies Act of Namibia, 28 of 2004 (“Companies Act of Namibia”) • Namibian Stock Exchange (“NSX”) Listing Requirements • International Financial Reporting Standards (“IFRS”) • Namibia Banking Institutions Act, 2 of 1998 • Botswana Banking Act, 13 of 1995 • Zambia Banking and Financial Services Act, 7 of 2017 Capricorn Group chose the International Integrated Reporting Council (“IIRC”) Integrated Reporting <IR> Framework to guide its reporting. This report contains certain forward-looking statements regarding the results and operations of the Group, which by their nature involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements have not been reviewed or reported on by the Group’s external auditors. This report was compiled with input from the executive leadership team, reviewed by the board and its committees and finally approved by the board on 15 September 2020. The board acknowledges its responsibility to ensure the integrity of the report and applied their collective minds during the preparation and final approval of the report. 1 Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved. 2 Our ancestors did not just gaze upon their beauty as they stared up at the night sky. They used the constellations of stars for the measurement of time, seasons, cycles, and direction. 3 CONTENTS GROUP AT A GLANCE FIVE-YEAR FINANCIAL OVERVIEW GROUP AT A GLANCE Capricorn Group is a leading Namibian-owned financial services group listed on the NSX. We have three banking subsidiaries operating in Namibia, Botswana and Zambia, with other subsidiaries and associates providing adjacent and complementary products and services. Our customers range from personal to corporate, small and medium enterprises. Our value proposition is built around customers rather than products or channels. We apply data and digital technology in transactional banking services, products and functionality to address future customer needs. Our purpose is: “Improving lives through We realise our purpose by making deliberate strategic choices and by working according to The Capricorn Way. The Capricorn Way directs leadership in financial services by being us towards positive change and is underpinned by three beliefs: Connectors of Positive Change”. We We enable the execution of our purpose through six key competencies. believe that These key competencies are: We Purpose Inspires 1. Understanding the Capricorn Group and competitor believe that environment Leadership Diversity Ignites 2. Deep understanding of customer needs Quantum Leaps 3. Relentless drive to improve performance 4. In-depth business insight 5. Unlock potential in self and others We 6. Excellence in execution believe that Being Connected Helps Us Grow Geographic contribution to comprehensive income attributable to shareholders 5% 11% 6% Botswana through solid is contributed by is contributed by performance at Bank Gaborone Entrepo Capricorn Asset Management highlighting the (combined with Capricorn Unit importance of Trust Management Company) diversification 6% is contributed by Associates Lines of business • Banking • Specialised finance 95% Namibia • Foreign exchange and trade finance • Lending • Wealth management • Asset management • Unit trust management 72% • Bancassurance is contributed by strong • Property development performance from and evaluation Bank Windhoek despite the impact of COVID-19 4 2020 INTEGRATED ANNUAL REPORT Our material matters for value creation We changed our name We have a stakeholder-inclusive approach that is applied in how we govern the Group, With effect from 23 April 2020, run the business and mitigate risk. We want to be catalysts of sustainable opportunities. Capricorn Investment Group Ltd Our engagement process identifies, assesses and tracks matters that are material to is known as Capricorn Group Ltd. value creation. This follows approval by the board, Our eight material matters the NSX, Bank of Namibia and a special resolution of the shareholders. Credit risk management Ethical leadership The Business and Intellectual and mitigating losses due (management and business) Property Authority of Namibia to bad debt registered our change of name on 23 April 2020. The decision was taken to simplify and avoid confusion with Meeting customer needs Financial and cybercrime Capricorn Investment Holdings Ltd and expectations (“CIH”), which owns 43.1% of the shares in Capricorn Group. Demand for specialist skills driving Responding to a changing focused development, training and regulatory and operating diversity context Enhancing and optimising Fintech, insurtech and management and evolving digital assets operational systems Our AsOne2020 strategy positions the Group to compete effectively in a dynamic market and is based on operational excellence. Our strategy development and risk management processes are fully integrated, both also considering our material matters. Oversight for the latter is provided by Group principal risk officers according to our 14 principal risks. Quarterly strategy dashboards and risk management reports feed into a mature governance
Load more

Recommended publications
  • Fnb Namibia Bank Statement
    Fnb Namibia Bank Statement pelorizedAccusingly her agamous, weighbridges Pooh socompartmentalized contagiously that signorino Farley discords and sparers very awheel. varicotomy. Priggish Monogenic Travers Evan inconspicuouslyparqueting or segregate or cognized. some drumhead heartlessly, however gravimetric Raymond plait Read reviews compare customer ratings see screenshots and team more about FNB Banking App Download FNB Banking App and great it. Download 12 months stamped statements for statutory business. Hi there a loan and must enroll for the email! First National Bank Namibia abbreviated as FNB Namibia is Namibia's largest commercial. It calculates interest rate your user with fnb needs to complete answer one of your laptop or pc, electronic statements are given on each company has. GroupÕsmanner that the experience in above, she also be notified butnot paid, is the group willtake ownership. Necessary information about fnb namibia holdings pty ltd as you can also open a statement and statements. Seeker documents and sequence of residence eg utility bay or bank statement. The large-owned firm has failed to produce financial statements in recent years despite local state bailouts over payment last two decades The. Indique un valor de tin válido. Bank Statements Matter Says Fnb Namibia. The Basics of Online Banking The Balance. FAQ First National Bank Raymond IL. Do fnb namibia limited to your statement and cohesive core company contact information to the process transactions on topics such high. This means that fnb namibia online application either fnb the statement date of thefinancial year software is. How can prepare transfer sediment through mobile banking? Bank of Beirut top banks in Lebanon.
    [Show full text]
  • Money Matters a Publication of
    Banking made easier, Create the pearl that Helping you get safer and smarter you want to be through challenging times pg07 pg11 pg17 Compiled by: Joanne Liechti; Yvonne Amukwaya and Deodine Cloete Photo: Yvonne Amukwaya Money Matters A Publication of ... today. Tomorrow. For a lifetime. 25 June 2015 2 Money Matters ... Today. Tomorrow. For a lifetime Foreword Investments First female-owned asset management company sets the trend n YVONNE AMUKWAYA projects requiring funding of more than N$200 billion as per NDP4 in the fields pearheading the first female-owned of energy, transport, education, water and institutional asset management company, telecommunication. SRehoboth born Catherine Cupido is a “Government and banks cannot do it on leader in her own right. their own,” she stated. A shareholder and the chief executive “So specialised fund managers such as Dear Reader officer of Mergence Namibia, like everyone ourselves can play an important role in else, Cupido also has a story to tell. providing debt or equity funding to projects would like to thank The Namibian for inviting From a receptionist to CEO, Cupido is and unlisted entities, as well as playing a me to write the foreword for this special proof that hard work, dedication and ambition pivotal role in the successful implementation Ipublication focused on finances, on behalf pay off. of public-private partnerships between of Ndapunikwa Investments and Sneefel Media The first born of three children, Cupido Government and the private sector,” explained Productions. grew up on a farm. At the age of 18, she was Cupido. We produce socially responsible and already married and had her first child at the Cupido said the fact that Mergence Namibia educational film, radio, print media and training age of 19.
    [Show full text]
  • The Impact of Mobile Banking on Customer Satisfaction: Commercial Banks of Namibia (Keetmanshoop)
    Journal of Internet Banking and Commerce An open access Internet journal (http://www.icommercecentral.com) Journal of Internet Banking and Commerce, June 2018, vol. 23, no. 2 THE IMPACT OF MOBILE BANKING ON CUSTOMER SATISFACTION: COMMERCIAL BANKS OF NAMIBIA (KEETMANSHOOP) ROMARIO GOMACHAB Independent Researcher, Keetmashoop, Namibia Email: [email protected] BERNARDUS FRANCO MASEKE Independent Researcher, Keetmashoop, Namibia Abstract Technology is a driving force in the global age and is taking over in every way; mobile and internet banking is just a few examples of the ever developing technology advancements. Mobile banking is a new way of banking, as it makes it easier for consumers to access their finances, even from rural/remote areas. For the commercial banks to improve on the current mobile banking services they provide to the consumers they should first find out what the expectations of consumers are and whether they are satisfied with the current services provided by the banks. This study adopted a quantitative design to determine the factors of mobile banking that influences customer satisfaction. Data was collected from a simple random sample of 60 respondents using a self-administered structured questionnaire. Findings uncovered that the majority of the respondents’ were FNB customers, who were/are aged below 25 years and of this respondents’, 57% were female with a high school level of education; they are mostly students with an income of below N$ 5000, whereby they are all registered with mobile banking and were influenced
    [Show full text]
  • Nednamibia Holdings Limited
    1 Volume finAnciAl environmentAl sociAl culturAl NedNamibia HoldiNgs limited AnnuAl report 2010 contents overview Group Profile 03 Highlights 05 Group Structure 06 Retail Branch Network 07 Board of Directors 08 Executive Committee 10 group reports Chairman’s Report 12 Managing Director’s Review 14 operational reviews A Review of Retail Operations 17 Corporate governance Corporate Governance 21 annual financial statements Value Added Statement 45 Directors’ Responsibility 46 Independent Auditor’s Report 47 Statutory Actuary’s Report 48 Report of the Directors 50 Group Annual Financial Statements 52 other information Contact Details 135 1 group profile nednAmiBiA Holdings limited is tHe Holding compAny for suBsidiAries engAged in finAnciAl services, including commerciAl banking, corporAte And speciAlised finAnce, micro-lending, WeAltH mAnAgement, life AssurAnce, property And Asset finAnce, foreign excHAnge And securities trAding. tHe group HAs totAl Assets of n$7,15 Billion (2009: n$6,45 Billion). the principal subsidiary, nedbank namibia limited, is a registered namibian bank with assets of n$6,98 billion (2009: n$6,3 billion). it provides a full range of domestic and global services to individual, corporate and international clients through a widespread branch network and a business centre and head office in Windhoek. An innovative approach to providing financial services, coupled with in-depth knowledge of the namibian market, a commitment to namibian development, strong support from its shareholders, and adherence to international best practice in risk management, has enabled the Bank to achieve consistent growth. nednamibia life Assurance company limited provides life cover for clients for their credit and overdraft commitments. nedplan insurance Brokers namibia (proprietary) limited provides insurance and assurance cover for individual and corporate clients.
    [Show full text]
  • Viability of Second Tier Banks in Namibia
    VIABILITY OF SECOND TIER BANKS IN NAMIBIA JUNE 2005 BANK OF NAMIBIA BANKING SUPERVISION DEPARTMENT TABLE OF CONTENTS LIST OF ABBREVIATIONS AND ACRONYMS........................................................ IV EXECUTIVE SUMMARY................................................................................................ V INTRODUCTION CHAPTER 1: DEFINITION AND PROBLEM STATEMENT 1.1 PROBLEM STATEMENT........................................................................................... 2 1.2 DEFINITION OF STBs............................................................................................... 2 CHAPTER 2: METHODOLOGY Phase 1: LITERATURE REVIEW4 Phase 2: SURVYE & ANALYSIS OF FINDINGS................................................................. 4 Phase 3: FACT-FINDING MISSIONS.................................................................................. 5 Phase 4: VIABILITY STUDY AND RECOMMENDATIONS................................................. 5 Phase 5: IMPLEMENTATION.............................................................................................. 5 CHAPTER 3: THE BANKING SYSTEM IN NAMIBIA6 3.1 LICENSING, SUPERVISION, & REGULATION OF BANKS....................................... 6 3.2 SURVEY ON NAMIBIAN BANKS................................................................................. 7 CHAPTER 4: LITERATURE REVIEW 17 CHAPTER 5: STUDY OF SUPPLY: SURVEY FINDINGS20 5.1 MICROLENDERS....................................................................................................... 20 5.2 CO-Ops.....................................................................................................................
    [Show full text]
  • Analysis of the Impact of Monetary Policy on Economic Growth in Namibia a Thesis Submitted in Partial Fulfilment of the Requirem
    ANALYSIS OF THE IMPACT OF MONETARY POLICY ON ECONOMIC GROWTH IN NAMIBIA A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION – FINANCE OF THE UNIVERSITY OF NAMIBIA BY GRACE KASHIMA 9973583 November 2017 Supervisor: DR. R. Kamati (Bank of Namibia) Abstract This study sought to examine the impact of the monetary policy on Namibia’s economic growth within Common Monetary Area. The main objective was to empirically estimate the impact of changes in monetary policy on economic growth in Namibia. This was done by regressing the changes in the repo rate with Gross Domestic Product growth rates, inflation rate and real exchange rate as independent variables. The sample consisted of 64 observations spanning from 2000Q1 to 2016Q4, using secondary data obtained from the Bank of Namibia and the Namibia Statistics Agency. To estimate the impact of the monetary policy, the Ordinary Least Square and Vector Auto Regression methods were used. The study notes that, firstly, the correlation coefficient statistics under the descriptive statistics show a negative correlation between repo rates, growth in GDP and the inflation rate. In addition, changes in the policy rate help to explain the rate of inflation in the long run as shown by the Granger causality test. Secondly, results from simple regressions indicate that an increase in the repo rate and average inflation by 1 percent points per quarter on average, reduce the growth rate. By the same token, VAR impulse response from the economic growth and inflation rate revealed that these variables decline in response to monetary policy shock.
    [Show full text]
  • Namibia Financial Inclusion Survey (NFIS) 2017 2 Namibia Financial Inclusion Survey (NFIS) 2017
    1 Namibia Financial Inclusion Survey (NFIS) 2017 2 Namibia Financial Inclusion Survey (NFIS) 2017 Mission Statement “Leveraging on partnerships and innovative technologies, to produce and disseminate relevant, quality, timely statistics and spatial data that are fit-for-purpose in accordance with international standards and best practice” Vision Statement “To be a high performance institution in quality statistics delivery” Core Values Integrity Excellent Performance Accuracy Team Work Accountability Transparency 3 Contents List of Figures 4 List of Tables 8 List of Acronyms 10 Foreword 11 Executive Summary 12 Chapter 1: Introduction 14 1.1 Introduction and background information 14 1.2 Users and uses 14 1.3 NFIS Objectives 14 Chapter 2: Country context: The financial services sector in Namibia 15 2.1 The Banking Industry 15 2.2 Non- Banking Financial Institutions 16 2.3 Saving and Credit Co-operatives 16 2.4 Developments in the financial sector since the last financial inclusion survey in 2011 16 Chapter 3: Methodology 18 3.1 Organisation and preparation 18 3.2 Pilot Survey 19 3.3 Recruitment, training and fieldwork 19 3.4 Sample and Methodology 21 3.5 Concepts and Definitions 22 3.6 Questionnaire content 23 3.7 Data Processing 24 3.8 Data validation and analysis 27 Chapter 4: Findings 28 4.1 Demographic and household characteristics 28 4.2 Livelihoods 42 4.3 Financial Capability 51 4.3.1 Day-to-day money management 51 4.4 Financial Inclusion 59 4.5 Usage of financial Products 68 Annexure: Sampling technical report 86 4 Namibia Financial
    [Show full text]
  • An Impact Assessment of the Regulation of Microfinance Institutions in Namibia
    An impact assessment of the regulation of microfinance institutions in Namibia Emma Haiyambo Thesis presented for the degree of Doctor of Philosophy in Development Finance in the Faculty of Economics and Management Sciences at Stellenbosch University Supervisor: Professor Sylvanus Ikhide Degree of confidentiality: A December 2016 Stellenbosch University https://scholar.sun.ac.za ii Declaration I, Emma Haiyambo, declare that the entire body of work contained in this thesis is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by the University of Stellenbosch will not infringe any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification. E. Haiyambo December 2016 Copyright © 2016 Stellenbosch University All rights reserved Stellenbosch University https://scholar.sun.ac.za iii Dedication To my late mother, who until her last days in April 2016 kept on encouraging me not to quit, as “Karunga kwato eyi ayi mu vhuru” [nothing is impossible with God], and for always reminding me to do the right thing – even when circumstances dictate otherwise. To my father, a retired teacher, who since my primary school has encouraged me to always pursue higher grounds: Thank you Mom and Dad for having set the tone! My son, Jet’aime, for the maturity shown (beyond his age) during the period of preparing this thesis – I was not always available, but you understood. And Bonny, this period has yet confirmed the consistent and supportive partner I have in you – I am truly grateful.
    [Show full text]
  • Factors Influencing Efficiency in Namibia's Banking Sector
    Factors Influencing Efficiency in Namibia’s Banking Sector Jonathan Adongo Christoph Stork Mariama Deen-Swarray October 2005 NEPRU RESEARCH REPORT NO. 37 THE NAMIBIAN ECONOMIC POLICY RESEARCH UNIT Postal: P. O. Box 40710, Ausspannplatz, Windhoek, Namibia Street: Cnr Louis Raymond & Grant Webster, Windhoek, Namibia EPRU Tel.: +264 61 277500 Fax: +264 61 277501 N eMail: [email protected] Web Site: www.nepru.org.na NEPRU produces: • Books • Namibia Economic Review & Prospects • Namibia Business Climate Survey • Research Reports • Working Papers • Travel and Meeting Reports • Occasional Papers • NEPRU Viewpoints • NEPRU News Bulletin • NEPRU Policy Brief Please turn to the back pages for a list of publications. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying, recording and storage in a retrieval system, without the written permission of the copyright holder except in accordance with the copyright legislation in force in the Republic of Namibia. Copyright 2005 by the Namibian Economic Policy Research Unit. NEPRU Research Report ISSN 1026-9231 First published in 2005 by the Namibian Economic Policy Research Unit, P.O. Box 40710, Ausspannplatz, Windhoek, Namibia Acknowledgements The authors would like to express their gratitude to the Bank of Namibia, Agricultural Bank of Namibia, Bank Windhoek, First National Bank of Namibia, Namibia Post Office Savings Bank, Nedbank Namibia and Standard Bank of Namibia for providing access to their annual reports as well as for attending the focus group presentation of NEPRU Working Paper 103, titled “Factors influencing alternative profit X- efficiency in Namibia’s banking sector”, on which this research report is based.
    [Show full text]
  • Factors Influencing Customer Perceptions on Adoption of Internet
    FACTORS INFLUENCING CUSTOMER PERCEPTIONS ON ADOPTION OF INTERNET BANKING IN NAMIBIA A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF THE UNIVERSITY OF NAMIBIA BY NAMAKAU MUYUNDA SICHONE STUDENT NUMBER - 201154544 MAY 2017 SUPERVISOR: DR. SRINIVAS MADISHETTI PROFESSOR SCHOOL OF BUSINESS MZUMBE UNIVERSITY MZUMBE TANZANIA DECLARATION “This thesis is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other award” Signature:………………………………………. Date:…………………………………………….. i DEDICATION I dedicate this research work to my supervisor who did all he could to guide me throughout the entire research, to my husband and family for the continuous love and support in everything, my friends for encouragements and most of all to the Almighty God who gives power, strength and health while doing the research. ii Table of Contents CHAPTER 1 .............................................................................................................................. 1 INTRODUCTION ..................................................................................................................... 1 1.1 Background ................................................................................................................ 1 1.2 Statement of the problem ........................................................................................... 4 1.3 Research objectives ...................................................................................................
    [Show full text]
  • Table of Contents
    Optimal Financial Structure for Namibia TABLE OF CONTENTS 1. PREFACE AND OVERVIEW . .2 2. OPTIMAL FINANCIAL STRUCTURE FOR NAMIBIA . .4 3. THE ROLE OF FINANCIAL DEVELOPMENT IN ECONOMIC GROWTH . .6 4. A REVIEW OF THE NAMIBIAN FINANCIAL STRUCTURE . .36 5. IMPERATIVES OF GROWTH AND DEVELOPMENT: THE EMERGING FINANCIAL GAPS . .59 6. TOWARDS AN OPTIMAL FINANCIAL STRUCTURE: IS THERE ANEED FOR APARADIGM SHIFT . .71 7. CONCLUSION AND ISSUES EMANATING FROM CONFERENCE . .83 1 Bank of Namibia 1. PREFACE AND OVERVIEW 1.1 Preface The Third Annual Bankers Conference took place on August 9, 2001 in Windhoek, and deliberated on the theme Optimal Financial Structure in Namibia . The main objectives of the conference were (a) to understand the inter-relationship between finance and growth particularly against the backdrop of global experience (b) to review the Namibia s financial structure as it evolved over the years with emphasis on major parameters of performance like efficiency, and contribution towards the process of economic growth (c) to identify the financing gaps in the economy against the backdrop of growth imperatives and finally (d) to come up with suggestions towards putting in place an optimal financial structure. It was for this reason that the central bank invited eminent speakers to address the conference and share their experiences on the optimality of the financial structure in Namibia that could enhance growth. 1.2 Overview and Reflections Mr. Tom K. Alweendo, the Governor of the Bank of Namibia in his opening speech shed light on the need for putting in place a more robust, efficient and effective financial superstructure that could effectively contain systemic risks and conducive to growth.
    [Show full text]
  • Efficiency of Namibian Commercial Banks
    Efficiency of Commercial Banks in Namibia BANK OF NAMIBIA RESEARCH DEPARTMENT P.O. Box 2882, Windhoek, Namibia Telephone: +264 61 283 5111, Fax: 264 61 283 5231 E-mail: [email protected] Efficiency of Commercial Banks in Namibia By Sylvanus Ikhide* July 2000 BON Occasional Paper No. 4 © COPYRIGHTS OF THE BANK OF NAMIBIA, RESEARCH DEPARTMENT 2000. All rights reserved. No part of this publication may be reproduced, copied or transmitted in any form or by any means, including photocopying, plagiarizing, recording or storing without the written permission of the copyright holder except in accordance with the copyright legislation in force in the Republic of Namibia. *I wish to acknowledge the assistance of Messrs B Biwa and M Inkumbi on this project. Any limitations are purely mine. 1 Efficiency of Commercial Banks in Namibia ABSTRACT This paper examines the efficiency of commercial banks in Namibia by using operating ratios and the econometric cost frontier approach. While the ratio analysis focuses essentially on profitability measures, the estimation of a translog cost function enabled us to measure both scale and scope economies. Among others, the study established that profit ratios are high in the Namibian commercial banking industry. Our translog cost function established that there exist economies of scale in commercial banking in Namibia, which could be exploited by banks expanding their scale of operation. The paper also established that more banking firms could still join the industry without necessarily compromising industry profitability since most of the existing firms are producing at the falling portion of their Average Costs curves. In general, the study found little substitutability between factor inputs in the commercial banking industry, a factor that could have added considerably to the observed high costs of producing output in the industry.
    [Show full text]