Nedbank open to Namibian localisation options
Nedbank Group has reiterated that it is open to exploring local ownership in its subsidiary, Nedbank Namibia.
Speaking to members of the media last week, its CEO, Jason Quinn, said local ownership in businesses can significantly drive performance.
“The commitment I will make is that we've got a very open mind towards exploring optionality with respect to local ownership. For great reasons, not just the regulatory reasons... but I do think it is important for us to demonstrate our commitment to Namibia through also enabling local ownership,” Quinn said.
He did not say whether this would involve local shareholders buying into the bank or a listing on the Namibia Securities Exchange (NSX).
“I am not sure yet, you know, what that means in terms of the structure we may come up with," he said.
"I could tell you that in a previous life, when I looked after a portfolio of 15 countries, interestingly enough, the countries that did the best or the companies that did the best in that portfolio over time had local ownership, and you had staff engagement in that local ownership," he noted.
Local ownership also helped boost entrepreneurship, Quinn explained.
"I think that creates and fosters entrepreneurship within the company. It gives you a close proximity to the local community.”
Talks initiated with central bank
Terence Sibiya, Nedbank’s head for Africa, last year said the bank is in touch with the Bank of Namibia, 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 Namibian stakeholders, like NEEEF, and key stakeholders within the Namibian market on the journey to localisation,” Sibiya said.
Engagement ongoing
The banking group is also reviewing how previous localisation processes were implemented 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 the banking group's other shareholders, Sibiya added.
“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," he said.
"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," Sibiya noted.
Speaking to members of the media last week, its CEO, Jason Quinn, said local ownership in businesses can significantly drive performance.
“The commitment I will make is that we've got a very open mind towards exploring optionality with respect to local ownership. For great reasons, not just the regulatory reasons... but I do think it is important for us to demonstrate our commitment to Namibia through also enabling local ownership,” Quinn said.
He did not say whether this would involve local shareholders buying into the bank or a listing on the Namibia Securities Exchange (NSX).
“I am not sure yet, you know, what that means in terms of the structure we may come up with," he said.
"I could tell you that in a previous life, when I looked after a portfolio of 15 countries, interestingly enough, the countries that did the best or the companies that did the best in that portfolio over time had local ownership, and you had staff engagement in that local ownership," he noted.
Local ownership also helped boost entrepreneurship, Quinn explained.
"I think that creates and fosters entrepreneurship within the company. It gives you a close proximity to the local community.”
Talks initiated with central bank
Terence Sibiya, Nedbank’s head for Africa, last year said the bank is in touch with the Bank of Namibia, 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 Namibian stakeholders, like NEEEF, and key stakeholders within the Namibian market on the journey to localisation,” Sibiya said.
Engagement ongoing
The banking group is also reviewing how previous localisation processes were implemented 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 the banking group's other shareholders, Sibiya added.
“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," he said.
"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," Sibiya noted.
