…Capricorn spends N$1.1 billion in local procurement
TIRI MASAWI
Capricorn Group chief executive officer David Nuyoma is urging Namibians to stop watching from the sidelines and start owning a piece of their banks.
With foreign investors still dominating the sector, Nuyoma said buying shares is the only way locals can tip the balance in their favour.
Of the four local major commercial banks, Nedbank, First National Bank Namibia, and Standard Bank Namibia are predominantly South African-owned, leaving Bank Windhoek as the only fully Namibian-owned institution.
“The sure way to improve ownership is to buy shares. You can buy shares starting with little savings that you have and that is the only way Namibians can genuinely improve their role in the sector,” said Nuyoma.
The government owns the other two development finance institutions, which are Agriculture Bank of Namibia (AgriBank) and Development Bank of Namibia (DBN).
PROCURING LOCALLY
Capricorn Group Holding, the majority shareholder in Bank Windhoek, contributed N$1.1 billion to local procurement and another N$1.4 billion in direct and indirect taxes in the last financial year, with Nuyoma saying the group is helping boost financial inclusion and economic growth
He told Namibia Business Review last week that there is a growing misconception about banks ‘profiteering’ in the local economy.
On the contrary, he says, “there is nothing wrong with banks making profit in Namibia as this allows them to contribute meaningfully to the local economy.”
The Capricorn Group has the largest loan book in the country for the banking industry standing at N$38 billion according to Nuyoma.
“If you look at our loan book, it’s N$38 billion. It’s actually the biggest loan book in Namibia if you compare it to other banking financial institutions. It is not only good business for Capricorn, it’s business for our clients as well, it is good business for our economy,” he said.
Nuyoma added “It’s where economic activity takes place and that is where circulation of money takes place in various sectors and so that is one. Secondly, we also reinvest beyond what is commonly known or referred to, but we are always reinvesting. For example, N$1.4 billion of this money is taken by the taxmen and it’s serious money,” he said.
Nuyoma said Capricorn Group now employs about 1800 Namibians and contributes significantly through Corporate Social Responsibility, primarily in the health sector.
“That is the money that enables so much that is happening through the treasury and making the country run. Sometimes there are voices that seem not to be happy that we are profitable. However, without being profitable, you won’t be able to pay these taxes. At least N$1.1 billion is for our suppliers, most of which are small and medium enterprises, so it is very significant,” he said,
Nuyoma said at least N$1.4 billion is reserved for the salaries, rewards, opportunities for career and personal development for the Capricorn Group employees.
He said the company’s contribution in CSR has helped Namibia in dealing with challenges of malnutrition which hit the Omaheke region last year.
“Of course if we play a small game we will pay small money, small impact, small everything. But we are fortunate to be in a position to have been able to perform and we are reinvesting at all times,” Nuyoma said.
Nuyoma said this enables Capricorn Group to play their part in the economy apart from just catering for their shareholders.
“Some think when we talk about profit it goes to shareholders, no. If you look at the cake, the money is distributed properly,” he said.
Nuyoma said only N$620 million is paid to shareholders as dividends. “And that is the truth. But the bulk of it, it actually goes back into society,” he said.
He added that, “We are a key contributor to the foundation by Dr. Femi at Katutura for the Children’s Heart Foundation because through that my understanding is that over 50 children have been assisted to restore their hearts,”
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