Nedbank readies for downstream push

Nedbank Namibia says it is positioning itself to finance projects in Namibia’s emerging oil and gas sector, particularly in the downstream space, once final investment decisions (FIDs) are taken on major developments.

“We will be participating in the downstream activities that will be happening,” managing director Martha Murorua said during a conference call held to discuss the banking group’s financial performance for the 2025 financial year (FY2025).

Murorua said the bank is investing in skills development to prepare for anticipated industry growth.

“We will be sending our colleagues for skills and capacity building, and expatriates will be coming to train our local staff,” she said.

Nedbank Africa Group executive Terrance Sibiya echoed the sentiment, noting that the group is assessing its role in supporting infrastructure and broader sector development.

“We still have significant clients that will participate. We are assessing what our role will be in terms of infrastructure and development; there is certainly a place for Nedbank to play,” Sibiya said.

Localisation remains priority

Sibiya also reaffirmed Nedbank Africa’s commitment to localising its Namibian subsidiary.

He reiterated the group’s position following the release of full-year 2025 results, saying engagements with the Bank of Namibia (BoN) and other stakeholders are ongoing.

“The group has consistently said it is working on localisation efforts. The structure and the form it will take will be communicated to the market. It is not a matter of if, but when,” Sibiya said.

His comments mirror statements made during a visit to Namibia in August 2025.

“We are in constant contact with the Bank of Namibia and other relevant bodies, including Namibian stakeholders and the New Equitable Economic Empowerment Framework, as well as key stakeholders within the Namibian market on the journey to localisation,” he added.

Margins adjust to rate changes

Meanwhile, Murorua said the bank has absorbed the impact of recent Bank of Namibia interventions aimed at narrowing the spread between the repurchase rate and the prime lending rate.

In October 2025, the BoN announced a two-phase reduction in the spread, with a 12.5 basis-point cut taking effect on 30 September 2025 and a further 12.5 basis-point reduction implemented on 31 December 2025.

The measure is intended to reduce historically wide interest rate margins, lower borrowing costs, and stimulate domestic economic activity.

“Last year, the BoN did cut the repo rate by 50 basis points. The repo rate has since been adjusted, and we have factored that in. Our margins were compressed, but we have priced for growth,” Murorua said.