Compiled by: Joanne Liechti; Yvonne Amukwaya and Deodine Cloete

A Publication of

... today. Tomorrow. For a lifetime.

Money Matters

Banking made easier, safer and smarter

Create the pearl that you want to be

Helping you get through challenging

times

Photo: Yvonne Amukwaya

pg07 pg11 pg17

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 2

Dear Reader

I would like to thank The Namibian for inviting me to write the foreword for this special publication focused on finances, on behalf

of Ndapunikwa Investments and Sneefel Media Productions.

We produce socially responsible and educational film, radio, print media and training seminars focussed on financial literacy, health, the public sector and the property industry. The topics covered in this publication are very near and dear to my heart, having gained experience in the areas of stockbroking, investment management, insurance and banking over the past 12 years. I am excited to share some of what I have learned over the years with you.

This special financial publication deals with everything from microlending, savings and debt management, to mobile apps and the buying and selling of shares. Many of us have questions about how to manage our finances, what to expect from the economy and most importantly, how to create wealth and keep it growing.

This special publication covers all this and more, from the viewpoints of various financial market leaders to those of experts in the provision of financial services. This information serves to introduce readers to key themes of interest for participants in the local and international financial markets.

As you read through all the valuable contributions in this publication, keep in mind that saving isn’t a get-rich-quick scheme.

Managing finances requires patience, consistency, product knowledge, and a great deal of curiosity about the prevailing local and international economic environment.

For those who are just starting, it may take work, and there will be a learning curve. But the rewards will far outweigh the required effort and benefit both your personal and professional life. There is no time like the present to take the first step by reading and enjoying this month’s submissions.

I trust you will find them to be enlightening, thought provoking, and that they provide you with ideas on how best to navigate the numerous and exciting economic opportunities developing in Namibia as we speak.

Best regards.Dantagos Jimmy-Melani Ndapunikwa Investments

Foreword Investments

n YVONNE AMUKWAYA

Spearheading the first female-owned institutional asset management company, Rehoboth born Catherine Cupido is a

leader in her own right. A shareholder and the chief executive

officer of Mergence Namibia, like everyone else, Cupido also has a story to tell.

From a receptionist to CEO, Cupido is proof that hard work, dedication and ambition pay off.

The first born of three children, Cupido grew up on a farm. At the age of 18, she was already married and had her first child at the age of 19.

She completed her secondary education at Concordia High School after she managed to secure a bursary.

In 1996 Cupido started working as a receptionist at Allan Gray. With only her matric certificate then, it was not long before she worked her way up to the position of portfolio administrator within the same year.

“I did my BCom Financial Management majoring in Risk, Strategy and Financial Management at Unisa while I was a receptionist. When the position was advertised I applied and enrolled for my BCom as it was a requirement to have the qualification,” she explained.

As fate would have it, Cupido was given a few months to prove herself and she did. ”I gave the position my best shot and eight months later I was officially appointed. I also finished my degree while I was at Allan Gray” she shared.

Cupido worked for Allan Gray for eight years before she moved to Johannesburg. There she served in roles such as the head of risk and finance and operations manager at RMB Asset Management and STANLIB Asset Managers in Johannesburg respectively and also served as a member of their executive, risk and audit committees.

Altogether Cupido gained 18 years of extensive experience in the financial services sector with a specific interest in fund management, all the while attending to her duties as a mother of three children.

After returning to Namibia in 2013, Cupido worked as a fund manager for VPB Namibia before taking up the position of CEO of Mergence Unlisted Investment Managers (Namibia), a company whose ethos of ‘Creating Shared Value’ she shares.

Clearly passionate about contributing to the financial sector, Cupido said she aims to do this by providing opportunities for the growth of the economy and to serve as a role model for other women aspiring to become successful within the financial sector.

Mergence Unlisted Investment Managers (Namibia) is approved and registered under

the laws of Namibia and is supervised by the Namibia Financial Institutions Supervisory Authority (Namfisa).

It is a subsidiary of specialist boutique asset manager, Mergence Investment Managers in South Africa.

Mergence Investment Managers forms part of the Mergence Africa Holdings Group which was started by Masimo Magerman and Izak Peterson 10 years ago, with starting capital of only N$ 5 000 and now manages more than N$ 22 billion in assets under management.

“Clients are institutional, covering the entire financial services industry (such as pension or retirement funds, provident funds and the insurance industry),” stated Cupido.

Mergence Namibia’s focus is on infrastructure development and social investment initiatives that will result in superior risk adjusted returns for long-term investors whilst supporting the development of both social and economic infrastructure services.

The Mergence Namibia Infrastructure Trust Fund forms part of Mergence’s suite of infrastructure and impact funds.

According to her, the Fund will invest across transport, communication, utilities and renewable energy opportunities via unlisted investments, in line with Vision 2030.

Cupido said Namibia has infrastructure

projects requiring funding of more than N$200 billion as per NDP4 in the fields of energy, transport, education, water and telecommunication.

“Government and banks cannot do it on their own,” she stated.

“So specialised fund managers such as ourselves can play an important role in providing debt or equity funding to projects and unlisted entities, as well as playing a pivotal role in the successful implementation of public-private partnerships between Government and the private sector,” explained Cupido.

Cupido said the fact that Mergence Namibia is a women-owned and run organisation is a non-issue.

“Firstly, the fact that we’re a company owned and run by Namibian women does not detract from our ability to successfully implement the same investment philosophy of being socially responsible investors whilst making a return on investment for investors as our key partners in South Africa,” she said.

Secondly, Cupido stressed, “We are also as highly qualified and experienced as any of our male counterparts in the financial sector in Namibia. We absolutely have what it takes.”

During the launch of Mergence Namibia last year October, Director General of National Planning Commission Tom Alweendo expressed his gratitude towards Mergence for having infrastructure development as a focus area for investment.

He also expressed his appreciation for the fact that they are rewriting history by being the first Namibian women-owned and women-run fund manager in Namibia and that a person’s gender does not determine their capabilities.

Asked what legacy she wants to leave behind, an outspoken Cupido said, “Making investment history. We share the vision on woman empowerment.”

“We’ll leave a legacy, showing that women can hold their own in the financial services sector at a senior management and owner level,” she added.

A force that looks up to her mother-in-law, Bella Cupido, as a role model, Cupido said that she also aspires to be a role model for younger women.

“In a broader sense, with our focus on community upliftment through infrastructure development, we will also be empowering women in small businesses within their own communities,” she added.

According to her, the roll-out of Mergence Namibia’s infrastructure fund will create jobs, uplift communities and improve the lives of a significant number of households.

Currently pursuing her MBA, Cupido stated that the most important legacy they would like to leave is that the company lived an ethos of creating shared value for all.

First female-owned asset management company sets the trend

In a broader sense, with our focus on community uplift-ment through infrastructure development, we will also be empowering women in small businesses within their own communities.

- Catherine Cupido

????????????????????

LET’S TALK OLD MUTUAL GROWTH FUND“This fund is suited for the longer term investor wishing to benefit from the wealth creation activities of

Namibian and South African companies that show potential for superior growth”.

SMS OMUT to 65656 or e-mail us at info.omutnam@oldmutual.com orcontact you Personal Financial Adviser or Broker.

Which fund o�ers me superior growthand return over a longer period?

3Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Investments

projects requiring funding of more than N$200 billion as per NDP4 in the fields of energy, transport, education, water and telecommunication.

“Government and banks cannot do it on their own,” she stated.

“So specialised fund managers such as ourselves can play an important role in providing debt or equity funding to projects and unlisted entities, as well as playing a pivotal role in the successful implementation of public-private partnerships between Government and the private sector,” explained Cupido.

Cupido said the fact that Mergence Namibia is a women-owned and run organisation is a non-issue.

“Firstly, the fact that we’re a company owned and run by Namibian women does not detract from our ability to successfully implement the same investment philosophy of being socially responsible investors whilst making a return on investment for investors as our key partners in South Africa,” she said.

Secondly, Cupido stressed, “We are also as highly qualified and experienced as any of our male counterparts in the financial sector in Namibia. We absolutely have what it takes.”

During the launch of Mergence Namibia last year October, Director General of National Planning Commission Tom Alweendo expressed his gratitude towards Mergence for having infrastructure development as a focus area for investment.

He also expressed his appreciation for the fact that they are rewriting history by being the first Namibian women-owned and women-run fund manager in Namibia and that a person’s gender does not determine their capabilities.

Asked what legacy she wants to leave behind, an outspoken Cupido said, “Making investment history. We share the vision on woman empowerment.”

“We’ll leave a legacy, showing that women can hold their own in the financial services sector at a senior management and owner level,” she added.

A force that looks up to her mother-in-law, Bella Cupido, as a role model, Cupido said that she also aspires to be a role model for younger women.

“In a broader sense, with our focus on community upliftment through infrastructure development, we will also be empowering women in small businesses within their own communities,” she added.

According to her, the roll-out of Mergence Namibia’s infrastructure fund will create jobs, uplift communities and improve the lives of a significant number of households.

Currently pursuing her MBA, Cupido stated that the most important legacy they would like to leave is that the company lived an ethos of creating shared value for all.

REPRO_Namibian_Ad 6/19/15 5:09 PM Page 1

Composite

C M Y CM MY CY CMY K

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 4

Investments

n FRANCOIS BOTHA

Welcome to the first article in a three-part series about

Mobile Strategy. In this series of articles I wish to share some insights about the importance for organisations to develop a mobile strategy, and the various factors to take into consideration when doing so. In very simple terms, what this means is leveraging mobile applications in order to achieve business goals. For many business leaders the opportunity is already clear – how to seize it is not.

First off, we start with strategy. Strategy can be defined as a high level plan to achieve one or more goals under conditions of uncertainty. The importance of strategic planning for a business is undisputed, as attested by its inclusion in the curricula of nearly every business school. Fundamental to the strategic planning process is scanning of the environment in which a business operates, and formulating strategies to ensure the business remains competitive in this changing environment. This is where mobile strategy comes in.

In terms of the external environment in which businesses operate, nothing has a broader impact than the explosion in Mobile Internet. In the rest of the world predictions are that mobile access to the Internet will soon surpass desktop access. Contrast this to the situation in Africa, and specifically Namibia. In Namibia most of the population has leapfrogged desktop computers altogether and access the Internet through mobile devices.

It seems that we are at a similar crossroads that we were more than a decade ago with the advent of widespread Internet use in the country. Only this time around the opportunities are greater. Mobile device use is very much different to using a desktop. For one thing, device access is much greater, with one study finding that on average, users access their devices 150 times a day! As we all know, mobile device use has been integrated into every aspect of our lives. We access these devices at home, in front of the TV, in a restaurant, while travelling and even as a well known South African comedian has recently pointed out, whilst taking care of nature's call.

According to the Harvard Business Review, it took 38 years for the radio to reach an audience of 50 million consumers, 13 years for television, four years for the Internet, but only two years for the iPhone!

It is in the prevalence of these devices, and in the very personal role they play in our lives where

the opportunity lies. The next article in the series will explore specific

areas in business that could benefit from mobile applications.

*Francois Botha holds degrees in accounting and computer science. He heads up Integrated Management Solutions - a boutique consultancy that helps companies leverage innovative technology to address core business problems. Email: information@ims.com.na

Web: www.ims.com.naTel: 061 248 264

Opportunities in Mobile Strategy

The Government Institutions Pension Fund (GIPF) is a defined benefit fund that provides guaranteed pension benefits to its members.

This means that should the Fund’s liabilities exceed its assets, the employer undertakes to cover for the shortfall. GIPF is the largest pension fund in Namibia, with an asset base of over N$88 billion and provides services to about 93 000 members and their beneficiaries in the form of retirement, ill-health, disability, retrenchment, death and funeral related benefits. The members of GIPF are government civil servants as well as employees of other participating institutions.

A key component of the Fund’s Corporate Strategy is to ensure that its members are well educated and aware about their benefits, claim procedures and the Rules of the Fund. This strategy also falls in line with good corporate governance. This article will shed more light on how members are admitted to the Fund.How do I become a member of GIPF?- Eligible members should ensure that

they are registered with the Fund through their respective HR office;

- Eligible members of GIPF are identified as follows:

i. Individuals employed by all government ministries, participating parastatals, village councils, regional councils and mission hospitals

ii. Permanently employed, between the ages of 18 up to 60 years and contributing fully to the Fund.

- Members should ensure that they are in possession of a membership certificate as proof of membership to the Fund –verify that the details on the certificate is correct as this influences the timely processing of benefits in the event of a claim.

- Submit certified copies of national documents (either a copy of a certified ID, valid passport or birth certificate) to the HR office where you are employed

- Driver’s licence, baptism certificate and voter’s

registration cards will not be considered for registration to the Fund.

Whose responsibility is it to ensure that a member is registered with the Fund?

- Firstly, the member should ensure that he/she submit certified copies of his/her national documents to the HR officer;

- Secondly, the HR Officer should make sure that:i. The correct amount of seven percent of the member’s

basic salary is deducted towards pension contribution and paid over to the Fund before the 7th of each month to avoid interest charges.

ii. The admission documents with the relevant supporting documents should reach the Fund within

the first three months of appointment.- Thirdly, upon receipt of the admission documents, the Fund will make sure that the member is registered and provided with a membership certificate.- The member should also make sure that the correct amount is deducted from their salary right from being appointed as a permanent employee and on a monthly basis.What will happen if a member is not registered with the Fund?- The member will not receive a Membership Certificate confirming his/her membership to the Fund- Neither will he/she receive a Benefit statement that indicates how

much he/she has saved towards pension.- Information can get distorted over time if the

member is not registered on time.- Delayed payment of benefits in the event of

resignation, retirement or death;Members and their beneficiaries can email their

queries to info@gipf.com.na, call our Client Services Unit at 061-205 1111 or contact any of the GIPF regional offices in their vicinity. Feel free to also visit our website at www.gipf.com.na as well as our Facebook page.

Know your benefits

It seems that we are at a similar crossroads

that we were more than a decade ago with the advent of

widespread Internet use in the country.

Only this time around the opportunities are greater. Mobile device

use is very much different to using a

desktop

Francois Botha

Daylight Namene

Visit www.gipf.com.na

Circle of strength

The GIPF takes the idea of your financial prosperity seriously. With every decision made, in every action carried out, we’re ensuring that your peace of mind is raised upon a solid foundation of calculated growth.

We are the GIPF and we’re here for you. Live in the circle of strength.

It’s all well and good designing software that func-tions - at Integrated Management Solutions, on the other hand, we do things differently. For us, going with the flow is not an option. Offering mundane solutions based on out-of-the-box packages, following on from what has gone before, is not what we do.

We analyse. We consider. We look ahead. Then we create client-specific, customised software that actually improves the way the business operates - that takes into account the way a business works today, and where it wants to be tomorrow. Our software will help drive a business onward and upward.

Put simply, our innovative business solutions deliver positive, cost-effective results that will have a fundamental impact on business performance and success.

When it’s time to move upa gear, it’s time to talk to IMS.Our Services: • Custom Software Development • ERP Software• Mobile App Development • Management Information Systems

• Cloud Services• Industrial Device Integration• Software Consulting• Systems Analysis and Documentation/software.namibia 061 248 264www.ims.com.na

5Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Visit www.gipf.com.na

Circle of strength

The GIPF takes the idea of your financial prosperity seriously. With every decision made, in every action carried out, we’re ensuring that your peace of mind is raised upon a solid foundation of calculated growth.

We are the GIPF and we’re here for you. Live in the circle of strength.

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 6

Saving is important, for many reasons. You may need furniture or to make

provision for the unexpected, or you might just like to know that you have something to fall back on in the event of an emergency. The first and probably biggest

step is getting started, and then keeping the momentum going despite so many other expenses.

However, to help you avoid the debt trap, you should get into the discipline of spending what is left over after setting aside an amount into your savings

as opposed to saving what is left over after spending. In this informative interview Standard Bank Namibia’s manager of liabilities Erna Kaura explains the basics of savings and investments.

Get into the habit of saving now rather than later

Investments

TN – What is the difference between saving and investing?

Saving represents money that is supposed to be immediately liquid and safe. Investing is for money that is supposed to be generating more money. Knowing the difference can help lower risk.

TN – What different methods of saving are there?

There are different types of savings vehicles, both formal and informal. Not everyone has access to formal banking products, so they have figured out their own ways to save money and many are participating in informal savings groups. An informal savings group is a social organisation formed to help members save money for specific purposes (either individual or at community level).

TN – What type of informal savings options are there?

One option is known as a stokvel – A stipulated amount of money is contributed at a fixed interval among a group of people (friends, colleagues, neighbours or members in the same religious group). The lump sum is handed over to members in turn, which is usually decided by a secret ballot at the beginning of each cycle.

TN – What are the benefits of saving formally?

Formal savings products, where you place your money with a financial institution, helps you avoid the risk of theft and failure to pay out when you need the funds, and provides easy access to your funds. Formal savings products provide secure savings not in jeopardy from fraud, theft, fire, and relatives' demands. Furthermore, you can earn interest while saving.

TN– Is my money safe in the bank?

Saving with a financial institution offers safety and the benefit of earning interest on funds. A bank is one of the safest places to save your money. In the wake of the financial crisis of 2008, most governments increased the level of insurance required by financial institutions on customers' bank accounts.

TN - How easy is it for me to access my money?

It is easy and affordable for you to access your money, whether you want to deposit funds or view balances. You can access your cash at any ATM across the region and use your cellphone to view balances, depending on what product you have.

Standard Bank Namibia’s manager of liabilities Erna Kaura

Debt isn’t always a bad thing as

long as the debt servicing costs are within your

affordability range. If you feel overly

indebted, take the necessary steps

toward reducing it.

à cont on page 7

If you haven’t already heard, a fixed access account from Standard Bank is a progressive and attractive investment account designed with your personal returns and convenience in mind:

• Fixed interest rate for your entire investment period• Access 30% of your investment value after 61 days without any penalty fees• At maturity, investment can be rolled over, or cancelled with the balance being paid into your transactional account• Minimum investment of N$1,000

FIXED ACCESS ACCOUNTS:What’s all the fuss about?

7Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Banking

Get into the habit of saving now rather than later

Investments

TN – How do I start saving?The saving journey begins with

budgeting and it is important to have a targeted percentage of your income that will contribute to your savings on a monthly basis.

This will in turn maintain the discipline as well as adjust with salary fluctuations.

TN - How can I save when I have

so much debt?Debt isn't always a bad thing as

long as the debt servicing costs are within your affordability range. If you feel overly indebted, take the necessary steps toward reducing it. You'll find that the cost of servicing your debt is usually higher than the gains from saving.

Focus on paying off your highest interest debt first and then, once it has all been reduced, use that money to start saving.

TN– How easy is it to save?It takes just 21 days to create a new

habit. Put aside a small amount every day and by the end of the month, you should have a lump sum to put into a savings account. The great news is that certain products have the flexibility of saving on your behalf.

A predetermined amount can be deducted automatically from your transactional account and deposited into a savings account through a debit or stop order. Help yourself by

getting into the discipline of spending what is left over after setting aside an amount into your savings account as opposed to saving what is left over after spending.

TN –What should I be saving for?There are different types of saving

goals to meet your specific financial needs. A short-term savings plan can be used for things like family holidays or to build a cushion for unexpected expenses. A medium-term plan can

be used for large items like a deposit for a house or a wedding. A long-term plan can be used for retirement or a child's tertiary education.

For more information contact:Surihe Gaomas-GuchuStandard Bank Namibia: Manager PR and Corporate CommunicationsE Mail: surihe.gaomas-guchu@standardbank.com.na; Tel: +264 (61) 294 2529

n BRONWEN CHASE & JERRY ELAGO

EBank, Namibia’s only branchless bank, is well on its way to transforming the banking industry,

breaking down barriers to accessing banking in Namibia for good. Since its launch in November 2014, the EBank brand has endeared itself well to the Namibian public and continues to grow at an impressive rate with numbers well ahead of market predictions. “We have outperformed our own expectations. In the first 30 days of operations, we recorded a total of 12 000 new activations – that is a total of 24 000 new transaction and 32 day notice savings accounts combined” said Bronwen Chase who heads sales and distribution division.

Innovating for inclusionThe entry of EBank into the Namibian

market is especially noteworthy because they challenge traditional banking norms and behaviours head-on and break down historic barriers to banking in an innovative and evolutionary manner. As a first of its kind bank, EBank allows clients to self-activate bank accounts directly from their cell phones. Chase stated that, “Opening and accessing your bank accounts is now as simple as dialling *140*140# from your cell phone (on the MTC network). No more unnecessary queues and paperwork”. When opening an EBank Easy or EBank Smart solution, clients are automatically assigned a transaction account and a free 32 day

notice savings account. “Saving and transacting has never been easier. Clients can transfer money at will between their accounts and earn competitive interest on savings in their 32 notice savings account”.

A further innovation is the Send Money solution that allows EBank clients to ‘Send Money’ in real-time to any 081-cellphone number, making it the most convenient and accessible money transfer solution in the market. “The Send Money service has become common practice amongst our clients. Our research shows that clients use the ‘Send Money’ service for a range of reasons which include sending money to relatives, paying for services and even paying salaries and wages”, says ChaseBranchless banking in action

According to Jerry Elago, EBank’s Sales Manager, “Continuous innovation, ease of use and reach are key to the success of the EBank model”. EBank clients access their accounts through their cell phone either via Short Code dialling (*140*140#) or via the EBank mobi-site (mobi.ebank.na) – alternatively, clients can access full internet banking (ebank.na) on their device of choice. Once in their accounts, the banking services menu allows the client to Send Money, do electronic payments, to transfer money between accounts and/or purchase airtime or electricity.

Depositing, withdrawing or paying for goods and services are done at the till points of EBank-enabled retailers. This

means an EBank client can bank while shopping at any Woermann Supermarket, Cymot, Agra, selected Engen Quick Shops and various other retailers nationwide. (EBank now has a market presence of over 100 retail banking partner outlets that translate into more than 500 deposit, withdrawal or payment till points countrywide.)

“Worldwide, an increasing number of financial service providers are finding new ways to deliver banking to their clients. Deposits, withdrawals and payment facilities for goods or services, are offered at grocery stores, pharmacies, agricultural retailers, general retailers and petrol stations (among others) rather than using bank branches or field offices. We are no different, in fact I dare say that we are amongst the market leaders in this new trend”, said Elago. The future

With the continued success of the EBank personal banking solutions, EBank Easy and Smart, the focus is now on developing and rolling out its business banking solution and increasing its reach. Other developments include the imminent introduction of a Master Card debit card and the continued focus on consumer education and retail partner sign-ups.

ISSUED BY:EBank Limited: Tel: +264 61 297 1000 Fax: +264 61 297 1800MEDIA CONTACT:Silke Steffen: Mobile: +264 81 170 1145 email: silke@ebank.na

Banking made easier, safer and smarter

Worldwide, an increasing number of financial service

providers are finding new ways to deliver

banking to their clients. Deposits, withdrawals and payment facilities for goods or services, are offered rather than

using bank branches or field offices. - Elago.

We have outperformed our own expectations.

In the first 30 days of operations, we recorded a total of 12,000 new

activations – that is a total of 24,000 new transaction and 32 day notice savings

accounts combined. - Chase

à from page 6

Jerry Elago Bronwen Chase

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 8

Financial services in Africa

According to Ernst & Young’s latest Africa attractiveness survey – Making choices, Africa’s share of

foreign direct investment (FDI) projects fell 8.4% in 2014, but remained well above pre-2008 levels. However, foreign direct capital investment into the continent surged to US$128b, up 136% in 2014 – a five-year high, with the number of jobs created from FDI jumping 68% resulting in 188,400 new positions across Africa.

9Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Banking

n MARIO POOLMAN

Nedbank is committed to becoming the most admired bank in Africa, and the number

one choice for banking in Namibia. We have a highly skilled and experienced Namibian team who are backed by a formidable presence on the African continent

Nedbank Namibia Limited provides a full range of domestic and global services to individual, corporate and international clients and through the Nedbank and Ecobank alliance, has a network that spans over 2 000 branches in 39 countries in Africa – the largest banking network on the continent.

The Nedbank team in Namibia is led by Managing Director Lionel Matthews who is also the former Chief Executive Officer of Old Mutual Investment Group Namibia with 20 years’ experience in finance, banking, investment and strategic planning.

He is supported by a team of dedicated staff and a core Executive team.

The team’s dedication to improving performance and adopting new technology has laid the foundation for a change innovation programme being piloted in Namibia to be rolled out to the rest of southern Africa between 2014 and 2016. This new system will see innovative and optimised offerings being made available to Nedbank clients, while integrating more closely with the rest of the network in Africa for added leverage.

The core of the network’s strength is in the contribution and performance of each individual country business, which brings localised knowledge and in-depth understanding of country economies, industries and business environments to the group. In this context Nedbank Namibia has performed exceptionally well, as the fastest growing bank in Namibia with an asset base and revenue that continues to grow year-on-year, bearing testimony to the confidence of the Namibian market in our operations.

As a strong local bank, with the backing of Africa and a global reach, we are well positioned to provide a powerful and comprehensive combined service offering encompassing the following:

Wholesale and transactional banking• Trade: Provides cross-border trade

solutions covering a full range of import and export trade services, including trade financing, letters of credit, bills for collection and guarantees. Our trade specialists are equipped to provide customised trade solutions for the larger and more complex trade transactions.

• Foreign payment services: Take care of international payments, inbound

and outbound, on a worldwide basis spanning all the major international and African currencies.

• Foreign exchange products: Range from vanilla, spot and forward exchange trades to more complex and structured foreign exchange transactions specially tailored to meet individual client requirements. Our foreign exchange capabilities cover the full spectrum of global and African currencies.

• Financing products: Range from overdraft or short-term working capital facilities for day-to-day operational purposes, to medium- and long-term debt to finance specific transactions or investments.

• Cash management solutions: Incorporate current account services, internet banking, cash sweeping, collections, cash pooling and payroll processing.

Investment banking• Structured and project finance:

Provide specialist expertise and has an established track record across a number of industry sectors, including energy, infrastructure and mining.

• Structured trade finance: Works closely with all the major international export credit agencies, and is equipped to offer cost-effective and tailored long-term financing structures to support the purchase of major plant and capital equipment.

• Corporate finance advisory services: Offer specialist advisory services across the alliance footprint, including mergers and acquisitions, corporate restructurings, listings, corporate valuations, debt and equity raising, and privatisation.

• Debt capital markets: Specialise in bond origination, sales and distribution, as well as debt structuring, underwriting, syndication, sales, primary and secondary distribution, and ratings and debt advisory services.

• Risk management services: Incorporate a range of vanilla and structured hedging solutions to assist clients in managing various categories of risk, including foreign exchange, interest rate and commodity price risk.

Retail banking• Current and savings accounts:

Enjoy the support of a range of enhancements such as internet banking, foreign exchange, debit cards, ATMs and domestic and foreign payment services.

• Loan products: Include credit cards, personal loans, vehicle finance and home loans.

The best of Namibia, with the backing of Africa

very underdeveloped market: only 25% of adults in sub-Saharan Africa have bank accounts, against a global average of 51%. Among intra-regional investors, South African firms led with 16 projects. The country’s largest banks, Barclays Africa, FirstRand, Nedbank and Standard Bank have all pursued Africa-wide expansion strategies over the past several years, as have Ecobank, headquartered in Togo, and Morocco-based Attijariwafa bank .

With a growing consumer class in Africa, the potential for mobile platforms in financial services appears unlimited. Many experts believe we are only in the very early stages of mobile financial services and are asking what the next big initiative will be. One possibility is the provision of credit via mobile platforms. This is still very much in its infancy, and traditional banks have approached this market with caution. In the short term, that leaves nontraditional banks the space to innovate and provide desperately needed credit to microbusiness start-ups, a segment that banks tend to shy away from, given that it is largely unsecured in nature. In the longer term, and depending on the success of these new entrants, banks may partner with them in future, as players can mutually benefit. (Banks have larger balance sheets to leverage, and online credit providers have the experience and risk expertise in identifying suitable clients.)

The success of mobile financial

Yolande Böttger, Financial Services Sector tax representative - Namibia

Financial services in Africa

According to Ernst & Young’s latest Africa attractiveness survey – Making choices, Africa’s share of

foreign direct investment (FDI) projects fell 8.4% in 2014, but remained well above pre-2008 levels. However, foreign direct capital investment into the continent surged to US$128b, up 136% in 2014 – a five-year high, with the number of jobs created from FDI jumping 68% resulting in 188,400 new positions across Africa.

So what does this entail for financial services?

Financial services is the second-largest sector by project numbers, and increasingly driven by intra-African investment. In 2014, about 40% of cross-border financial services projects were launched by African companies.

Regional banks and financial services providers are increasingly adopting a pan-African approach to capitalise on a

services will however depend on some of the following areas:

Regulatory stanceLargely, a regulator’s approach

is driven by its need to protect consumers and ensure prudential compliance, striving to minimise systemic threats to financial services stability. But there is a growing acknowledgement that it could play a critical role in increasing financial inclusion. As regulators become more receptive to mobile banking due to the consumer benefits it provides, and as security enhancements limit fraud and provide greater consumer confidence, the risks of cybercrime do remain prevalent and are constantly shifting, requiring ongoing initiatives to secure mobile platforms.

Banks maintaining ownership of the mobile financial transaction market:

Traditionally, banks have owned the financial payments and transactions space. The launch of the internet made banking more accessible, both in terms of reach and in terms of hours during, which one could transact. More recently, ownership of this space is under threat: mobile operators and technology upstarts are encroaching, seeking additional revenue flows in response to slowing voice and data revenue growth.

Smart technology bringing new possibilities:

Smartphone technology is becoming more readily available, especially for the unbanked, as

costs fall. Joint ventures between banks and telecoms companies are beneficial to both parties. Banks provide the license, and therefore the ability to channel deposits, while telecom companies provide platforms. However, many banks are developing in-house expertise or even purchasing companies with the technical skills sets.

Banks could therefore benefit not only from stronger transactional revenue growth, but also from higher interest income flows, as they make increasing use of mobile platforms to grow their advances books. Thus far, transactional fee income has been the major benefit to banks (and non-bank entrants), but the potential profit flows from lending activities via mobile platforms is likely to be significantly higher.

Lionel Matthews

ContactsAssurance Services: Deon van der Walt deon.vanderwalt@za.ey.com

Fraud Investigation & Dispute Services: Brigitte Kisting brigitte.kisting@za.ey.com

Tax Services:Cameron Kotzé cameron.kotze@za.ey.com

Advisory / Transaction Advisory Services: JG van Graan JG.vangraan@za.ey.com

Contact telephone number:+ 264 61 2891100

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 10

Tax

Previously Namibians investing in interest- bearing assets in

South Africa, were not liable for withholding taxes. Therefore most Namibian taxpayers would have accounted for foreign interest on their tax returns and paid taxes in Namibia thereon. With the introduction of the

withholding tax on interest in SA, this picture is about to change.

As from 1 March 2015, South African residents have the obligation to withhold 15% from the payment of interest made to Namibian residents.

This means that your South African interest may be subject to tax in SA.

The South African payer of the interest is obligated to deduct the 15% withholding tax from the payment.

Interest is deemed to be paid on the earlier of the date on which the interest is paid or becomes due and payable.

There are however some exemptions where the

withholding tax will not apply. Some of the most important exemptions that apply are as follows:

•Interest paid by South African National, Provincial or Local Governments in the sphere (for example government bonds and treasury bills).

• Interest paid by any bank, the South

African Reserve Bank, the Development Bank of South Africa or the International Development Corporation.

•Interest paid in respect of any listed debt (for example Debentures listed on the JSE).

•Interest on broker accounts (trust accounts for client money held by

brokers)If the exemptions

apply, it will be business as usual for you and you can continue to reflect the foreign interest in your tax return as you have done in prior years.

One of the scenarios where the withholding tax will apply is where a South African company owes

money to the Namibian taxpayer and interest is paid to the Namibian taxpayer.

Should you incur withholding tax on interest in South Africa, some of the main considerations to take into account are:

• Namibian residents can rely on the provisions of the Double Taxation Agreement (“DTA”) between Namibia and South Africa.

•In terms of the DTA, SA may levy tax on your interest but only up to 10%.

•In order to claim the reduced rate of 10%, Namibian residents are required to make a special declaration to the South African person paying the interest. The format of this declaration should be obtained from the South African payer of the interest. This declaration must state that the interest is subject to a reduced rate as a result of the application of the double tax treaty between Namibia and South Africa. This should be done as soon as possible.

•Furthermore, the treaty allows Namibian taxpayers to claim a credit against their Namibian taxes for the tax incurred in SA. This can be done on your annual

tax return.johan.nel@na.pwc.com

Withholding Tax on Interest introduced in SA

Introducing PWC’s TaxTim for 30 June deadline

For some, the completion of the personal

tax return is an administrative nightmare. But that might just be a thing of the past. PwC's TaxTim is the world’s first online digital tax assistant for individuals. TaxTim is a friendly online assistant that asks you a series of questions. In the end he provides you with an completed tax return ready for submission to Inland Revenue.Key benefits of PwC’s TaxTim include:• It is the fastest easiest way to do tax returns, do a return in less than 30 minutes.• Save money and time by doing the return yourself with confidence.• Be tax compliant and do your tax right the first time.TaxTim also provides attractive employer packages, for groups of employees.TaxTim Pricing:Opening special N$ 370 per tax returnDiscounted packages available:• Employer group packages 30%• Refer a friend 15%

REPUBLIC OF NAMIBIAMINISTRY OF FINANCE

INLAND REVENUE

Windhoek (Central Region) (22 June 2015 till 30 June 2015 from 09h00 – 17h00)

• KhomasGrooveMall(Khomasdal)• WindhoekMainBranchPostOffice• PioniersparkPostOffice• KleinWindhoekPostOffice• BachbrechtPostOffice• ErosPostOffice• OlympiaPostOffice• AusspannplatzPostOffice• RedCrossBuilding(NexttoShopriteKatutura)• ParkFoodsShoppingCentre(Khomasdal)• GovernmentOfficePark• GroveMall–KleineKuppearea

Walvis Bay (Western Region)(29 June 2015 till 30 June 2015 from 08h00 – 17h00)

• OmaruruMunicipality• HentiesbayMunicipality• UsakosMagistrate`soffice• ArandisMunicipality• KaribibMagistrate`soffice• SwakopmundSatelliteoffice

Otjiwarongo Regional Office (North Central Region) (29 June 2015 till 30 June 2015: 08h00 – 17h00)

• GrootfonteinNampost• OutjoNampost• OtaviNampost• KhorixasNampost

Oshakati Regional Office (Northern Region) (29 June till 30 June 2015: 08h00 – 17h00)

• OpuwoTownCouncil• OmuthiyaTownCouncil• EenhanaTownCouncilatGreenwellComplexEenhana,ERF937/8(HarelbekeStreet)

Rundu Regional Office (29 June 2015 till 30 June 2015: 08h00 – 17h00)

• Kavango East-Mukwe Constituency in Divunduat theCouncillor`soffice

• Kavango West-Mpungu Constituency in Nkurenkuru attheCouncillor`soffice

Keetmanshoop(Southern Region) Regional Office

Date KeetmanshoopCentralPark 30/06/15 OldMutualShoppingComplex 30/06/15 Rehoboth(TownCouncil,MagistrateOffice) 30/06/15 Aranos(TownCouncil) 30/06/15 RoshPinah(Spar) 30/06/15 Karasburg(Magistrateoffice) 30/06/15 LuderitzSatilliteoffice 30/06/15 MarientalSatilliteoffice 30/06/15 OranjemundSatilliteoffice 30/06/15 KeetmanshoopRegionalOffice 30/06/15 MarientalSupersand 29/06/15 Maltahohe(constituencyoffice) 29/06/15 Noordoewer(Nampost) 26/06/15 BrukarosAbattoir 26/06/15 MarientalShopriteCentre 26/06/15 Aus(constituencyoffice) 26/06/15 Gellapos 26/06/15 NaudeDam 25/06/15 Bethanie(villagecouncil) 25/06/15 MarientalPrison 25/06/15 Stampriet(Constituencyoffice) 25/06/15 Aussenkehr 25/06/15 Gibeon(VillageCouncil) 24/06/15

Please take note that the purpose of the designated pointsis merely to expedite and make submission of the returnsmoreconvenientandnotaxaccount-relatedenquirieswillbeentertained at the points. Cheques will be accepted but nocash.CashpaymentcanonlybemadeatRegionalOfficesorMagistrateofficesdesignatedtoreceivecashpayments.

Taxpayers are requested to make copies of all supportingdocuments and returns which will be stamped by InlandRevenue Department officials as proof of submission andreceiptthereofonduedate.

.............................................................Ericah B. ShafudahPermanentSecretary:MinistryOfFinance

In addition to taxpayers rendering income tax returns at regional offices and satellite offices, arrangements have been made that taxpayers may also submit returns at the designated points as set out below:

NOTIFICATION TO ALL TAXPAYERSSUBMISSION OF INCOME TAX RETURNS AT DESIGNATED POINTS IN ANTICIPATION OF THE DUE DATE 30 JUNE 2015

11Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Tax Forex Exchange

n YVONNE AMUKWAYA

True to the saying that nothing good ever comes easy in life, Namibian born and bred Maggie von Luttichou

has managed to make a name for herself in the financial sector despite countless setbacks.

The initiator and managing director of Magnet Bureau De Change has tudied and worked for twelve years in the United States.

Before she left the country, Von Luttichou worked for over a year and a half and left with only U$100 in her pocket. Little did she know that the years of juggling between two jobs at one stage would mould her into a force to be reckoned with.

Heading the first female-led and 100% Namibian-owned exchange bureau, a media shy Von Luttichou shared her journey in an exclusive interview with The Namibian.

Von Luttichou studied business administration with emphasis on business-to-business sales at a women's college. After her studies, she started working at a car dealership where she specialised in financing; rebuilding credit and financing vehicles.

Not being sure what to study, she went on a work exchange programme before she discovered her real passion – the finance sector.

After over a decade abroad, Von Luttichou finally decided to come home in 2009 and worked for USAID for two years.

However, it was not long before she wanted more and saw the opportunity to venture into the finance sector by starting a bureau that will provide Western Union services.

And as the saying goes, you can't have your cake and eat it, Von Luttichou had to choose between her work and taking the risk of starting her own company. She did the latter.

The company's licence was approved in 2010 and it provides forex services as well as money transfer services through Western Union.

In 2011, von Luttichou bravely opened the doors of Magnet Bureau De Change at Ausspanplatz, Windhoek and says she hasn't looked back since.

Like many start-ups, Von Luttichou said that financing was initially a problem but that did not stop her. Luckily, her family provided collateral for her.

I surrounded myself with people whom I was able to learn from. I definitely learnt from people,” she said humbly.

Giving insight on how Magnet Bureau De Change operates, von Luttichou said that through her company, people are able to send and receive money via Western Union.

Namibians as well as foreigners can also send and receive money around the world. “We can assist you to exchange your money. If a friend sent you money or you received a tip in another currency, we can also assist you with that,” she explained.

In addition to the above services, she said that they are also busy coming up with a new project, Magnet Payment Solution. The initiative is meant for the domestic market and will enable people to send and receive money.

“Money service needs to be convenient and easily accessible to people and that is one of the reasons for our growth,” she stressed.

When Magnet first opened its doors, it had five employees, and currently it employs 73 people, growing into one of the leading bureaus in the country.

After its first branch, it was not long before the company expanded to Walvis Bay after which it opened branches at Hosea Kutako International Airport, Swakopmund, Ongwediva, Outjo, Tsumeb and Rundu. There are plans to also open branches in Keetmanshoop and Katima Mulilo.

A risk taker, Von Luttichou urged other business owners not to be afraid of failure. “It is better to say you tried and this is why it didn't work than to say you didn't try because you were afraid of failure,” she explained.

In addition, von Luttichou said that while there is great potential in the market, there is a need to come up with more innovative products.

“The Bureau came about because we saw the need for it. It is high time for entrepreneurs to create new opportunities,” she noted adding that while the company has grown tremendously, it was not always easy and the market is very volatile.

The company will be launching its new interactive and user friendly website soon. The online services will allow people to order cash online and fill in their forms as well as find out which branch is closest to them.

Asked about her recipe for success, Von Luttichou said perseverance. “It's been a rough road and it still has hurdles. There are days when you just don't feel like it and all you see is black clouds but you get up and go not only for yourself but for other people.”

Von Luttichou is in the process of handing over her role to the company's longest serving employee and will only focus on the Mobile Payment Solution aspect of the business.

Furthermore, Von Luttichou urged women to come to the forefront in the financial sector. “Don't set boundaries. The minute you set boundaries you are binding yourself. Don't go with the flow or take the same road that everyone else is taking. Choose your own path,” she advised.

The buying and selling of shares

Create the pearl that you want to be

It’s been a rough road and it still has hurdles. There are

days when you just don’t feel like it and all you see is black clouds but you get up and go not only

for yourself but for other people.

n DANTAGOS JIMMY-MELANI

It may surprise some to learn that shares, also known as equity, are a part of nearly every investment product sold to individuals and companies wishing

to grow their savings in Namibia. During the last 12 months (ending May 2015) an

investment into the locally listed companies on the Namibian Stock Exchange (NSX) resulted in a 31,55% return on investment, as measured by the NSX Local Index.

This means that an amount of N$1000 invested would have grown to N$1315.50 over the period. These numbers make the buying and selling of shares one of the greatest tools ever invented for building wealth. However, before starting on the road to financial freedom, one needs to have a solid understanding of what shares are and how they trade in the market.

Shares can (and do) create wealth for investors, but they also carry the risk of major losses.

The key to protecting yourself in the equity market is to understand where you are putting your money. The purpose of this piece is therefore to provide the foundation you need to make investment decisions about shares.

We will start by explaining what a share is, how shares are traded, and finally, how you can buy and sell shares for yourself.

Simply put, a share, also known as equity, gives you as an investor a part in the ownership of a company. Shares represent a claim on the company's assets and earnings.

As you acquire more shares, your ownership in the company increases. As one of the many owners or shareholders of a company, you have a claim (albeit usually very small) to everything the company owns. You are also entitled to your share of the company's profits, usually distributed via dividends, as well as any voting rights attached to the share.

How shares are traded:Most shares are traded on stock exchanges, which are

places where buyers and sellers meet and decide on a

price. The purpose of a stock market is to facilitate the

exchange of shares and other securities between buyers and sellers, thereby reducing the risks of investing. In Namibia the trading of shares takes place on the Namibian Stock Exchange, and must be executed via a registered stockbroker, an agent who facilitate the trading of shares.

Therefore, in order to invest in shares directly, an individual or company must approach a stockbroker registered with the Namibian Stock Exchange and instruct the stockbroker to buy and sell shares on their client account.

You can also invest in shares by approaching an investment management company or other financial services provider, offering savings products that include shares as an investment vehicle.

These firms usually have a range of products for individuals and companies to choose from, which comply with all the relevant regulations. When choosing such an investment product it is wise to receive professional financial advice in order to determine your appetite for risky investments, the portion of your budget that can be allocated to investment savings, your investment return objectives, and the time period over which you wish to invest before you need your money back.

It must be emphasised that there are no guarantees when it comes to individual shares. Some companies’ pay out dividends, others do not. Even if a company does not pay dividends, an investor can make money when there is an increase in the share value.

Companies issuing shares to the public can also go bankrupt, in which case your investment may be worth nothing. So investment in shares is usually not advisable for the overly conservative person, who requires assurances and guarantees. But for those who have the stomach for risk, shares may just be the right place to start building your financial future.

*For more information and training on shares and other types of investments, contact Ndapunikwa Investments at info@ndapunikwa.com or visit our website www.ndapunikwa.com.

Maggie von Luttichou

Dantagos Jimmy-Melani

cms.wbsjournal.co.zaMagnet Bureau De Change’s first branch at Ausspanplatz

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 12

Insurance

TOLL FREE: 081 9400WWW.MAGNET.COM.NA

WINDHOEKAUSSPANNPLATZ

WINDHOEK CENTRAL KAISERKRONE BUILDING

HOSEA KUTAKO INTERNATIONAL AIRPORT

SWAKOPMUND

WALVIS BAY

OUTJO

ONGWEDIVA

RUNDU

KATIMA MULILO

TSUMEB

KEETMANSHOOP

ONDANGWA

13Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Insurance

n YVONNE AMUKWAYA

The loss of a loved one can be an overwhelming experience, more so when it comes to finances.

However, the only adequate measurement that can avoid financial strain is to have a funeral plan.

Established in the late 1990’s as a subsidiary of a South African company, Bonlife offers funeral plan packages to the lower-end market.

The company became a fully Namibian-owned company in 2002 after shareholders were bought out and began trading as Bonlife in 2003.

It provides cost effective funeral policies to the middle-to-low income market and is currently serving over 6 000 members.

Earlier this year, Bonlife introduced three new value-added products as part of the benefits for its members and plans are there to introduce three more.

The early comfort benefit allows clients to decide which waiting period they want. Usually, clients normally have a 12-month waiting period before making any claims but policyholders can opt for 6-months.

The company also offers a newspaper benefit whereby they place obituaries in The Namibian and Republikein for everyone covered in the policy. Bonlife also offers a grocery benefit worth N$ 2 000 for the main life assured and spouse.

According to Johan Oosthuysen, Bonlife managing director, what makes Bonlife unique is that the company does not ask for medical tests and claims are paid within 48 hours.

The company customises packages

according to clients' needs. “As an insurer that develops specific products for specific markets, Bonlife has found itself creating tailor- made products for such organisations as the Public Service Union of Namibia and Africa Personnel Services amongst others,” said Oosthuysen.

The minimum payout benefit for families or individual members is N$ 5 000 while the maximum is N$ 100 000.

Premiums start from N$ 40 for single members up to N$ 70 for a family with six children.

For flexibility and convenience, Bonlife has a web-based administrative system that allows agents and funeral undertakings to register new members and make claims online.

As off July, Bonlife will provide body transportation benefits that will provide for body transportation from parlour to parlour. It will also provide a tombstone benefit in the event of a claim as well as a family support benefit whereby if the main life insured passes away, the family will be looked after for three months. An amount of N$ 4 000 per month will be paid to the family for three months to cover all bills and household payments.

Bonlife has a branch in Windhoek and Oshakati but is looking at penetrating the funeral undertaker market even further.

In addition, Oosthuysen said it is important for people to take out funeral cover because there are cash requirements when it comes to funerals and you will need additional funds.

Payments for policies are done through debit order arrangements but can also be paid through Nampost.

As an insurer that develops specific

products for specific markets, Bonlife has found itself

creating tailor- made products for such

organisations as the Public Service Union of Namibia and Africa Personnel Services

amongst others.

Bonlife – Where family comes first

n YVONNE AMUKWAYA

For many, putting bread on the table means an 8h00 to 17h00 career, whilst for others it is

simply making do of whatever time there is.

A cook by profession, Irene Rietz worked at Keetmanshoop Spar for over a decade before she started making leather shoes, popularly known as 'vellies'.

After buying a piece of leather five years ago, Rietz taught herself how to make vellies from her home in Tseiblaagte, Keetmanshoop. It was not long before she perfected the art and would display the vellies in town during month end.

Because of the high demand for the vellies, she decided to put her whole heart into the initiative.

With no formal training, Rietz classifies her work as a God-given talent that needs special attention. “One needs to pay close attention to detail because it is important and the leather is expensive therefore you cannot waste it,” she shared during a recent chat with The Namibian.

Rietz opened her stall at the !Homs ai Market in 2013 saying business is going well. “The shoes are popular and in high demand,” she said confidently.

However, because she works alone, Rietz said the work can get overwhelming.

“Sometimes the orders are too many because it is not only people

Self taught shoemaker shares her story

from Keetmanshoop that want the shoes but from neighbouring settlements and even other towns.”

While there are some vellies on display at her stall, Rietz primarily makes vellies on order and can make up to two pairs per day.

During the busy seasons such as when wedding orders come in, she occasionally asks her two daughters, aged 18 and 21, to assist her.

In addition, Rietz called on government to assist SME's for them to access proper training. According to her, this will enable them to expand.

Rietz plans to make other leather products such as handbags.

She travels to Windhoek on a regular basis to buy leather at Nakara.

The price of a pair of women's vellies is N$400 while that of men amounts to N$660.

Johan Oosthuysen

Irene Rietz

EARLY COMFORT BENEFIT

Change your waiting period from 12 to 6 months for all persons covered on your policy.

GROCERY BENEFIT

In the event of a claim, receive a grocery voucher for the amount of N$2000.00

NEWSPAPER BENEFIT

Bonlife will publish two newspaper notifications/obituaries in the Namibian and Republikein informing your family and friends when the service will be.

BODY TRANSPORTATION BENEFIT

This Benefit provides for body transportation from parlour to parlour.

TOMBSTONE BENEFIT

This benefit will provide a tombstone in the event of a claim.

FAMILY SUPPORT BENEFIT

If the main life insured passes away their family will be looked after for three months. An amount of N$4000 per month will be paid to the family for three months to cover all bills and payments.

with NEW Optional BenefitsNow Why you

should chooseBonlife

ALL IN ONE

ALL IN ONE» No medical tests

» Ask us about our Instant Cash Benefit

» Claims paid within 48 hours

» Up to 6 children covered

» A package that fits your lifestyle

» Premium Waiver option

» Up to 6 extended dependants covered

A Package that fits your Lifestyle

The distribution channels are:

» Bonlife Head Office in Windhoek......................................................................... Contact 061 250 331

» Deveron Funeral Undertakers (Walvis Bay, Mariental, Reheboth)......................................................................... Contact 062 525 599

» Tumandje Burial Services (offices located in the North)......................................................................... Contact 065 222 230

» Namibia Funeral Supply (Offices located in the North)......................................................................... Contact 065 254 588

» Walters Funeral Undertaker (Office located in Karasburg)......................................................................... Contact 063 270 270

» Eastern Funeral Undertakers (Office located in Gobabis)......................................................................... Contact 062 564 860

» Suide Begrafnis (Offices lacated in Keetmanshoop)......................................................................... Contact 063 225 129Terms and Conditions Apply

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 14

Insurance

YVONNE AMUKWAYA

The insurance sector is one of the fastest growing, yet not many people understand what it is. According

to the Oxford dictionary, insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium.

Insurance can be divided into two basic categories: short and long term.

According to Knowledge Insurance Services' Eunice Mouton, short-term insurance includes vehicle, house content, farming and commercial products whereas long-term insurance includes services such as life cover, disability, severe illness and funeral policies and testaments.

Knowledge Insurance Services was established in 2008 and provides clients with short and long-term insurance services. As a joint venture between Mouton and Lawrence Husselmann, the company prides itself by providing clients with extraordinary service.

Having joined the financial sector in1990, the partners' years of experience make them quite a team.

Describing their company as small fish in a big pond, Husselmann said the greatest benefit of being independent is that they have more options for the clients.

Knowledge Insurance Services provides services of a number of companies such as Old Mutual, Santam, Hollard, Momentum Life Assurance and Liberty Life Insurance to their clients.

The company also recently joined forces with Dentsure for minor body repairs

on damaged vehicles and Motosure, a mechanical breakdown policy.

Mouton says their biggest challenge is to convince people of the importance to have insurance. “People are not well educated on insurance nor the importance of life cover. Normally people just take whatever they find without doing research and finding out why it is really important to have that particular insurance,” she said adding that, “We want to educate our clients and potential clients why they need to pay the insurance premium and why they need it in the first place.”

Shedding more light, Mouton said that if you have Dentsure, you can repair dents and scratches without affecting your vehicle insurance. “Because of the risks associated with buying a second-hand vehicle, Motosure covers engine damage on these vehicles,” she noted.

She further states that it is important to insure vehicles because should they be damaged in an accident without being insured, the vehicle owner must cover all costs adding,

“That personal relationship we have with clients is important. Sometimes clients call after hours and on weekends just to tell the company that they were in an accident and ask how to deal with the problem. We then make the necessary arrangements and advise them,”she says. “With bigger players, clients often have to stand in long queues and wait for hours to get assistance. Here you walk in and out, satisfied,” Husselman says.

Mouton and Husselman said that their plan is to have branches in all major towns around the country and grow in size at the same time contributing to poverty reduction.

n DANNY MEYER

TOURISM is a major contributor to Namibia’s gross domestic product (GDP)

with the million or so visitors to the country annually, injecting billions of dollars into the country’s economy. The trickle-down effect, in terms of revenue and job creation, is not always so obvious and worthy of closer examination.

Take for example an eatery in the capital city that specialises in Indian cuisine. Started just over two years ago by husband-and-wife team, Dilip and Chandra Akheniya with the help of their son, Harsh, Garnish Indian Restaurant is packed most days of the week.

Namibia has scored big time in the sense that over a relatively short period of time new jobs have been created by Garnish, investments were made in furniture, fixtures and fittings and the fiscus benefits by way of tax collections. Additionally, tourists are spending a dollar or more in

Windhoek, before returning home.Dilip Akheniya decided to invest

in Namibia after visiting the country as a tourist. Of course, it is not the first time and won’t be the last that a pleasant holiday in Namibia has resulted in a visitor returning as an investor. Isn’t this a good reason for the Investment Centre to advertise on menus of restaurants that attract foreign clientele?

The story gets better. Popular demand has resulted in Garnish establishing a presence in Swakopmund. Known as Garnish Swakopmund. Together with Dilip Akheniya and Palvi Lamba, Bhatia co-owns the new eatery, which is already replicating the success of its big brother in Windhoek. This is in terms of investment, job creation and revenue generation from serving tourists and locals.

The two Garnish Indian restaurants, in the capital and Swakopmund, are not the only small and medium sized enterprises (SMEs) that service the tourism sector. There

are hundreds all over the country and more are tapping into this lucrative market. Clearly evident from the high number who were showcasing what they have to offer at the recently held tourism exposition in Windhoek.

Impressively several stands at this year’s edition of the country’s annual expo were occupied by small enterprises. Not by SMEs in the accommodation business or those who operate tours around the country or in the region, but by dozens of small enterprises providing goods and support services to the tourism industry.

Among SMEs showcasing their goods and services were purveyors of food, alcohol and non-alcoholic beverages. Suppliers of cleaning material, fancy crockery, protective clothing, karakul wool carpets and leather goods makers also used the expo as a marketing tool. Seemingly efforts by government and private sector entities to encourage SMEs to enter the tourism sector are now yielding results.

SMEs support the tourism sector Official opening of Garnish Swakopmund

in June. Photo Navin Morar

Transferring your risk

We want to educate our clients and

potential clients why they need to pay the insurance

premium and why they need it in the first place.

Lawrence Husselmann Eunice Mouton

INVESTMENTS | SAVINGS | INSURANCE

I’m saving for the future, but what if I need to access some money today?

They may be starting school today, but it’s that graduation that you have in the back of your mind. However, today it’s about school fees and those never ending new shoes. For these moments, we have created the 2-IN-ONE SAVINGS PLAN.

OLD MUTUAL 2-IN-ONE SAVINGS PLANS are simple yet flexible plans that offer 2 savings pockets administered as one, with one monthly premium. Each savings plan has a Long Term Pocket and a Short Term Pocket. The Short Term Pocket lets you access your money today, while building up for your future financial goal through the Long Term Pocket.

For further information on 2-IN-ONE, SMS Savings to 65656, or contact your Old Mutual Personal Adviser at (061) 299 3999.

LET’S TALK 2-IN-ONE SAVINGS PLANS

2in1 A5 ADVERTS.indd 1 02/06/2015 08:38

Contact details:

Office061–220 157 / 081 435 6456

Lawrence Husselmann081 241 8937

Eunice Mouton081 322 8651

Physical Address:4 Eike Street, Suiderhof,

Windhoek

“32 YEARS OF INSURANCE EXPERIENCE”

SERVICE PROVIDER OF:Long Term Insurance – Old Mutual,

Momentum, Liberty LifeShort Term Insurance – Old Mutual,

Hollard, SantamDentsure, Motorsure, Nasria

We are your trusted partners when it comes to the best solution

for your Life Insurance, Wills & Testaments, Investments, Study

Policies, Funeral Plans, Housing & Vehicle Insurance, Commercial Insurance & Farming Insurance.

15Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Insurance Insurance

on damaged vehicles and Motosure, a mechanical breakdown policy.

Mouton says their biggest challenge is to convince people of the importance to have insurance. “People are not well educated on insurance nor the importance of life cover. Normally people just take whatever they find without doing research and finding out why it is really important to have that particular insurance,” she said adding that, “We want to educate our clients and potential clients why they need to pay the insurance premium and why they need it in the first place.”

Shedding more light, Mouton said that if you have Dentsure, you can repair dents and scratches without affecting your vehicle insurance. “Because of the risks associated with buying a second-hand vehicle, Motosure covers engine damage on these vehicles,” she noted.

She further states that it is important to insure vehicles because should they be damaged in an accident without being insured, the vehicle owner must cover all costs adding,

“That personal relationship we have with clients is important. Sometimes clients call after hours and on weekends just to tell the company that they were in an accident and ask how to deal with the problem. We then make the necessary arrangements and advise them,”she says. “With bigger players, clients often have to stand in long queues and wait for hours to get assistance. Here you walk in and out, satisfied,” Husselman says.

Mouton and Husselman said that their plan is to have branches in all major towns around the country and grow in size at the same time contributing to poverty reduction.

Transferring your risk Eunice Mouton

The value of valuations in the insurance industry

MARSH AFRICAAfrica’s pre-eminent Insurance Broker and Risk Advisorwww.africa.marsh.com | Tel: +264 61 270 4000

Success does not come from eliminating risk.

We help you balance your strengths against the risks that come with growth.

SUCCESS COMES FROM MANAGING RISK FOR .GROWTH

0

5

25

75

95

100

0

5

25

75

95

100

0

5

25

75

95

100

0

5

25

75

95

100

The Namibian_Money Matters_230615

23 June 2015 01:39:06 PM

Determining value is a tricky, fluid business. What happens when an organisation operates without insurance?

It places itself at risk.Insurance protects a person or entity from

extreme financial loss or responsibility due to an unfortunate emergency, accident or undesirable unforeseen event. There is an increasing need for companies to effectively manage risk, maximise their cash flow and adhere to international financial reporting standards which means a better understanding of the value of their assets. Given the array of risks organisations face today – it is important that businesses have adequate insurance coverage to protect them when the unexpected occurs.

As with all types of insurance, organisations need to declare accurate values of their assets. Coverage is a major expense for businesses and underwriters demand precise and detailed values before providing coverage. When responding to insurers’ demands for financial information, organisations must use the right methodologies to determine how much coverage they need. Inadequate or inaccurate figures can lead to insufficient coverage or overpaid premiums. When such errors are identified, underwriters may deny coverage or apply restrictions.

Andre Nagel, Valuations Practice Leader within the Marsh Risk Consulting (MRC) division at Marsh Africa, confirms that accuracy is a key requirement in supporting organisations’ efforts to provide accurate financial data for insurance coverage purposes.

Accuracy, speed and confidentiality are vital qualities in professionals working

within the Valuations sector. Working with professionals who have the experience and knowledge to deliver a full suite of valuation services is crucial. Overvalued items result in higher premiums and disputed claims while undervalued items mean financial loss.

“The Marsh Africa team of valuation experts is made of approximately 17 professionals ranging from junior through to senior. These professionals are trained and experienced in the latest valuation methods, and stay abreast of the changing standards in the industry”, says Nagel.

Regardless of the size of the organisation or the industry, from retail and manufacturing, to mining, oil, and gas, Marsh’s valuation experts have the knowledge and experience to accurately determine the proper replacement cost value to insure your assets with the necessary detail to satisfy insurers.

Most organisations will conduct an evaluation when preparing for a merger & acquisition, insuring intellectual property assets, etc. Valuations should really be conducted for any organisation that is considering renewing or updating its insurance coverage, considering new or additional coverage, updating its business continuity plans or reviewing its supply chain exposures.

Planning and preparation is as key a step in effective valuations as it is in running a successful business. Businesses need to understand that business value depends on how it is measured. Marsh Risk Consulting’s valuations professionals provide boards of directors and other stakeholders with a clear understanding of the financial fairness of

potential transactions such as acquisitions and divestitures. Marsh assists clients to understand what their business, shares or assets are worth in the context of transactions, financial reporting, disputes, tax or group restructure purposes.

With Marsh’s broad industry experience, every engagement is with professionals who understand the clients’ business, offering specific expertise and providing both time and cost advantages.

“Valuation time frames vary according to what’s under evaluation. It’s important to keep service levels high, and ensure objective, independent valuations at all times to enable clients to procure adequate insurance for their business needs”, says Nagel. “The Marsh Africa valuations team is located in South Africa, but services clients in the rest of Africa and various parts of the world. They have worked with clients in Russia, Australia, the Middle East, London, etc.”

The team provides independent consulting and valuations virtually across every industry. Marsh’s industry experience, its global reach and close working relationship with property insurance experts throughout Marsh, offers organisations unique, insightful solutions.

Each solution is tailored to the varying needs of clients by working closely with forensic accountants and other recovery experts to ensure that a thorough evaluation is conducted.

“To conduct a thorough investigation and therefore obtain accurate data, it’s important that clients cooperate and disclose all the information that is required from them during the evaluation process”, added Nagel.

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 16

build your business.

At FNB Business we have expertise and experience in every sector of the economy. Providing tailored financial solutions for operations of all sizes, we partner with you for the long run to realise the potential of your business.

Contact us on (+264) 61 299 2603 for more information.Terms and conditions apply. www.fnbnamibia.com.na

Franchising

FNB Business has been actively supporting the growing financial need of franchisors and

franchisees in Namibia for years; hence the creation of specialised banking solutions to support this exciting market in Namibia.

Fanie Steenkamp, head of franchise at FNB Namibia says franchising contributes significantly to employment creation in Namibia hence the creation of various product and pricing solutions

tailor-made for respective franchises of which some businesses are Small and Medium Enterprises (SMEs).

FNB Franchising looks at providing funding for:

o new franchise outletso revamps of your existing franchise

outleto sale of existing franchises and

working capitalOther areas that are funded by FNB

are the acquisition, shareholder buy-ins, ownership transfers, recapitalisation, expansion project and commercial property funding.

With FNB Business Franchising, your business not only gets specialised and tailor-made banking solutions, but also benefits directly from tapping into our franchise knowledge base and expertise, said Steenkamp.

Franchising is a method for the distribution of products and services. It

has enabled entrepreneurs to grow their small businesses into massive networks much faster than would otherwise have been possible. It has also assisted aspiring entrepreneurs to enter the exciting world of business with a safety net. While some failures are on record, they are the exception rather than the rule.

They were the work of reckless individuals who chose to ignore tried and tested guidelines for franchising.

The franchising track record proves that as long as the concept is chosen for the right reasons and implemented properly, it will deliver on its promise to be a blueprint for business success.

For more information please contact Vicky Muranda, Manager: Corporate Communications at FNB Holdings on telephone: (+264 61) 299 2944. vmuranda@fnbnamibia.com.na

FNB further innovates in franchising

Fanie Steenkamp

Franchising is a long-term cooperative relationship

between two entities—a franchisor and one or more franchisees—that is based on an agreement in which the franchisor provides a licensed privilege to the franchisee to do business. The franchisor grants the franchisee the right to use a developed concept, including trademarks and brand names, production, service and marketing methods and the entire business operation model, for a fee. The franchisee then provides the time, capital, and desire to utilize the brand and services provided by the franchisor to build a thriving business.

The product, method or service being marketed is usually identified by the franchisor's brand name, and the holder of the privilege (franchisee) is often given exclusive access to a defined geographical area for a defined period of time, all of which is defined in the Franchise Agreement.

• FranchiseA privilege or right

officially granted to offer specific products or services under explicit guidelines at a certain location for a declared period of time.

• Franchise AgreementThe legal document

between the Franchisor and the Franchisee that governs the relationship between the two entities for a specified period of time. It frames the relationship in a concise manner.

• FranchiseeA person or entity to

whom the right to conduct a business is granted by the franchisor or licensor.

• FranchisorThe company owning/

controlling the rights to grant franchises to potential franchisees.

* Courtesy of FranChoice.

Definition of Fran-chising

17Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Franchising Loans

Fanie Steenkamp

n STAFF REPORTER

Nam-mic Financial Services Holdings (Pty) Ltd is now a household

name with the workers and in the financial services sector. Currently Nam-mic Financial Services Holdings (NFSH) has grown significantly with a total nett asset value of approximately N$500 million and through this the workers have direct shareholding interests in the following companies: CIH (Bank Windhoek Holdings) – 9,5%, Sanlam Namibia Holdings – 16,4%, and Santam Namibia – 12,05%.

Nam-mic Financial Services is a majority-owned and union-controlled investment company with shares in the company beneficially held by: Namibia Mineworkers Investment Holdings, Capricorn Investment Holdings, Effort Investments Holding Company (Napwu), Nafau Investment Holdings, Namibia National Teachers Union (Nantu), Namibia Transport and Allied Workers Union (Natau) as well as Namibia Farm Workers Union (Nafwu).

The board of directors of Nam-mic Financial Services Holdings approved the Social Investment Fund, whereby it agreed that a percentage of the profits will be invested directly for the workers. The focus areas of the fund will be: job

creation and entrepreneurship, education (focusing on skills re-training opportunities and assistance to workers) and health, with particular emphasis on the prevention of HIV-AIDS amongst workers.

NFSH has a wholly owned subsidiary called Nam-mic Financial Solutions (Pty) Ltd that mainly sells financial services and products to members and their dependants. The products and services include a loan scheme for personal use, study purposes, etc, Nam-Mic legal Access, life and funeral cover and savings plans.

The purpose of the loan is to help individuals consolidate their debts and to assist clients in need of financial assistance but who are unable to provide some sort of security.

Dirk de Koker of Nam-mic Financial Solutions said that if there is no agreement, a loan cannot be given. “At present we have concluded 701 payroll deduction agreements with employers, which include government, parastatals as well as private sector companies to provide financial products and services to our clients,” he said.

Individuals who qualify are able to get loans of between N$2 000 and N$50 000 and repayment varies from one year to five years.

A product, which he considers to be the most affordable in terms of interest rates, De Koker

said the micro loan facility is popular especially amongst employees who do not qualify for loans at banking institutions. “We do not ask for security. The only security we require is the payroll deduction agreement with employers and that makes the product much more popular in the market,” said De Koker confidently.

According to him, loan application and approval turnaround times are competitive with other service providers.

To qualify for a micro loan, individuals must: • Bebetween21and60years.• Beemployedforoneyearand

six months.• Havesignedapayroll

deduction agreement with the employer.

• Notexceed25%oftheirbasicsalary when repaying their loans.

• Repay70%ofanexistingloanto qualify for a second loan.

• Beabletoservicetheinstallment after paying for

their normal living expenses. •Takeintoaccounttheirincome

before applying for a loan. The Bank of Namibia granted

Nam-mic Payment Solutions (Pty) Ltd authority to issue its product, Nam-mic card as a payment instrument under the Determination on Issuing of Electronic Money in Namibia in terms of section 14 of the Payment System Management Act No 18 of 2003.

This comes on the back of two years of diligent research,

negotiations with stakeholders and the filing of relevant applications to the Bank of Namibia to provide the best possible products to constituents, the workers and their family members. Nam-mic Card has been developed in line with the drive for Financial Inclusivity to offer a payment instrument that works for all Namibians.

Nam-mic Financial Solutions' head office is on the corner of John Meinert and Hosea Kutako Street.

Helping you get through challenging times

Definition of Fran-chising

Sales consultants of Nam-mic Financial Services Holdings

Give your futureSomething to smile about

NOW...• Up to 60

months repayment

• Fastest turn-around

times

• Lowest interest rates

Finaned by - BW Finance (Pty) Ltd

Our Mico Loan offers you up to N$50 000, repayable over 12, 24, 36, 48 or even 60 months.

At Nam-mic Financial Solutions, we have created a micro loan product designed to assist with your immediate needs, and give you financial independence as soon as possible.

Contact us today on (061) 388 000, or your regional branch, for more information on our Micro Loan products, and let’s get you the freedom you deserve.

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 18

Loans Vehicle & Asset

BPI – Enabling SMEs to own

commercial property

n STAFF REPORTER

FROM all quarters one hears that small businesses are the

engines of job creation in Namibia. Politicians, captains of business, leaders of business sector organizations (BSOs), academic researchers and others are fond of making

such claims. Of late this popular

perception is being questioned. Not only in Namibia, but around the world the claim that small businesses create most jobs is under scrutiny. Protagonists are being challenged to substantiate claims of employment creation. But does it

really matter who actually creates more jobs, big or small, especially in a country plagued by high unemployment?

Another view is emerging locally that also places small enterprises in the spotlight in terms of new jobs. Some feel while small firms do create many jobs it is not done

in a sustainable manner, a claim that measured over time, job losses negate the ones created.

Owners of small enterprises counter and consider such job loss allegations a fallacy and Hasten to point out jobs are not actually lost when staff leave to take-up work elsewhere. They

demand recognition as on-the-job trainers and crave acknowledgement for employing thousands, often school leavers. They point out that once an employee gains job skills and demonstrate work experience, they become marketable and attractive for recruitment by government and larger

firms.Small enterprises

usually have limited resources making the rapid scaling-up of investment a challenge. Resultant slow organisational growth limits promotions and career advancement opportunities for staff. Additionally, funds are not always available to provide

benefits or perks such as pension, medical aid, and housing and transport subsidies. So high turnover of staff in the small and medium enterprise (SME) sector should not come as a surprise and it is naïve to believe that jobs created are being lost.

SMEs don’t generate the revenue or pay as much tax as corporates do, but in a community, township or small urban area they do create jobs and stimulate the local economy. This is no longer a debating point. In Namibia SMEs are now being targeted, as never before, to benefit from help and support.

Government’s ministry charged with trade and industrial policy development and implementation has had its expanded mandate to help SMEs grow incorporated in its new name. It is now known as the Ministry of Industry, Trade and SME Development.

The private sector, non-governmental organisations (NGOs), international donors and others for a long time had SME support programmes in place to complement government’s efforts. So rather than debate and agonise over the role of small businesses in job creation, perhaps it is wiser to start exploring the effectiveness of programmes already in place.

Exploring how to avoid the replication of efforts will also be a smart move. In parallel we can embark on an exercise to develop strategies that tackle previously identified challenges inhibiting SME sector growth. Obstacles are cumbersome bureaucracy, the high cost of compliance, taxes, cost of doing business, skills deficiency and access to affordable work space, among others.

There is ample evidence that easy money is the proverbial kiss-of-death. Consider the poor performance of the now defunct Small Business Credit Guarantee Trust. An exercise to determine which enterprises are still operational, five years after benefiting from equipment grant programmes, might be another shocker in the making.

Accessing capital is important to start and for growing a business, but often less so than tackling the above highlighted challenges. Anyway, Namibia’s commercial banks all now either operate business units to service SME, or have products in place aimed specifically at helping small enterprises access funds.

In turn, the state banks, Development Bank of Namibia, Agricultural Bank of Namibia, Nampost Savings Bank and the SME Bank also run funding programmes.

Less talk about jobs and more about support

19Money Matters ... Today. Tomorrow. For a lifetime 25 June 2015

Loans Vehicle & Asset

n STAFF REPORTER

Finaid Financial Services, a wholly Namibian-owned company has been in the micro-lending sector

since the mid 90s.

The company was established in 1996 and has since expanded its footprint.§

According to Ronald Weber, managing director and chairperson of the Microlenders Association, with their 19 years track record, they have managed to distinguish themselves.

The company has 14 branches in various towns such as Gobabis, Grootfontein, Karibib, Luderitz, Swakopmund, Walvis Bay, Otjiwarongo, Oshakati, Ondangwa, Windhoek and Rundu.

The main focus of the company is the payday lending service whereby clients get 30-day loans. These are given against

an individual's salary. The average loan amount is N$ 1100. Despite the general assumption that

the market is saturated, Weber said that Finaid has managed to open new branches.

“When you look at what you could have gotten and what you are getting now, there is a shrink. When we started business, the banks were not involved in microlending but now they are,” he shared.

Also a member of the Microlenders Association and registered with Namfisa, Weber said Finaid's future plan is to strengthen its role in the market and he hopes that legislation will be favourable.

In eight of Finaid's branches clients are also able to buy airtime and pre-paid electricity as a result of the joint venture between Finaid and Nam-mic.

Finaid employs 60 people countrywide.

n YVONNE AMUKWAYA

Access to financing for commercial property is a challenge for many small and medium enterprises

(SMEs) because of high real estate costs.However, SMEs now have the opportunity

to access 100% commercial property financing.

In existence for over 34 years in South Africa, specialist fund management company, Business Partners International (BPI) Namibia has come to the rescue of many enterprises with its SME Fund.

One of the beneficiaries from BPI's 100% commercial property financing is a medium enterprise which used to pay N$55 000 in rent within the central business district but now has its own premises in Windhoek West.

The owner of the enterprise valued at N$5,9 million applied for funding in September. Funding was approved in December.

According to BPI Namibia country manager Eloise du Plessis, one of the products that work well for entrepreneurs who want to buy their own premises given the current property market is the 100% commercial property finance solution.

The 100% property financing enables entrepreneurs to own office premises without a deposit, however the entrepreneur must occupy at least 50% of the property.

“If you need to buy a warehouse for N$5 million, and you don't have the deposit, we can fully finance the warehouse or if you do have a deposit but would rather use it as working capital in the business, we can provide the full N$5 million and also cover any extras such as transfer costs and bond registration, explained du Plessis.

She said the advantage with having your own premises is that entrepreneurs have security of tenure and do not have to worry about rental escalation.

However, if the entrepreneur does not occupy 50% of the premises, and want to let out the majority of the property, the Fund can still finance the property.

“If they want to occupy only a part of the property; we can still fund that portion. It is then called a joint venture property. But we do not finance the premises fully, there must be a contribution from the entrepreneur,” said du Plessis.

BPIs SME Fund finances premises from N$600 000 up to N$12 million. However, if the property is worth more, the company works with the commercial banks to evaluate financing options.

Besides the commercial financing option, BPI also provides general business financing

BPI – Enabling SMEs to own

commercial property

which focuses on expansion capital. “If an entrepreneur wants to expand and

open other branches or simply buy more equipment for the business, we can fund that,” she said.

However, du Plessis said that for an enterprise to qualify, it must be in existence for some time, have a track record and the entrepreneur must also be able to demonstrate understanding of the market.

In addition, she said BPI has less stringent collateral requirements than the commercial banks. “We work on a simple model: the higher the risk we take, the higher the returns we require.

BPI does not fund many start-up companies unless they are start-up franchises. “It is important though that the franchisor is affiliated with the Franchise Association of South Africa (FASA) to stand a higher chance of getting funding,” said du Plessis.

Whilst all financiers ask for a business plan, du Plessis said that many entrepreneurs run to consultants to write their business plans for them and present business plans that even they do not understand. “A three-page business plan that you wrote yourself is worth much more than a 70-page business plan written by someone else,” she advised.

A good business plan will have a profile on what the business does, the amount of financing required and what it is required for as well as how the funding will benefit the business, according to Du Plessis.

BPI also provides mentorship for beneficiaries of the SME Fund as part of the Technical Assistance Programme. Entrepreneurs range from accounting support, problem solving and marketing strategy solutions.

The SME Fund only caters for industrial, retail and office space. Currently, the prime focus areas are Windhoek, Walvis Bay, Swakopmund and Henties Bay and parts of the Otjozondjupa region.

Providing you with an essential service

benefits or perks such as pension, medical aid, and housing and transport subsidies. So high turnover of staff in the small and medium enterprise (SME) sector should not come as a surprise and it is naïve to believe that jobs created are being lost.

SMEs don’t generate the revenue or pay as much tax as corporates do, but in a community, township or small urban area they do create jobs and stimulate the local economy. This is no longer a debating point. In Namibia SMEs are now being targeted, as never before, to benefit from help and support.

Government’s ministry charged with trade and industrial policy development and implementation has had its expanded mandate to help SMEs grow incorporated in its new name. It is now known as the Ministry of Industry, Trade and SME Development.

The private sector, non-governmental organisations (NGOs), international donors and others for a long time had SME support programmes in place to complement government’s efforts. So rather than debate and agonise over the role of small businesses in job creation, perhaps it is wiser to start exploring the effectiveness of programmes already in place.

Exploring how to avoid the replication of efforts will also be a smart move. In parallel we can embark on an exercise to develop strategies that tackle previously identified challenges inhibiting SME sector growth. Obstacles are cumbersome bureaucracy, the high cost of compliance, taxes, cost of doing business, skills deficiency and access to affordable work space, among others.

There is ample evidence that easy money is the proverbial kiss-of-death. Consider the poor performance of the now defunct Small Business Credit Guarantee Trust. An exercise to determine which enterprises are still operational, five years after benefiting from equipment grant programmes, might be another shocker in the making.

Accessing capital is important to start and for growing a business, but often less so than tackling the above highlighted challenges. Anyway, Namibia’s commercial banks all now either operate business units to service SME, or have products in place aimed specifically at helping small enterprises access funds.

In turn, the state banks, Development Bank of Namibia, Agricultural Bank of Namibia, Nampost Savings Bank and the SME Bank also run funding programmes.

Eloise du Plessis

The New Standard In Pre-Owned Vehicles!

5,000km Service Guarantee

100-Point Vehicle Inspection6-Months Battery Guarantee

40% Tyre Tread Guarantee

1-Month / 3,000km Delivery Warranty2-Years / Unlimited Optional Warranty

Tel: 061-25 5140 Prices VAT Included. T&C’s ApplyE&O.E www.wheels4all.com.na ©2015

SAVE YOUR CASH! PAY NO OR LOW DEPOSIT!

2011 Ford Bantam 1.6i XLT (13,800km)

N$ 124,900

8,000

N$ 119,900

2011 VW Polo-Vivo 1.6i (AC + Mags)

N$ 159,900

2013 Toyota Corolla 1.6i Professional

2011 Isuzu KB250 D-TEQ S/C F/Side

N$ 170,900

9,000

2013 VW Polo 1.6i Trendline 4-Dr

N$ 169,900

2014 VW Polo 1.6i Comfortline (8,900km)

N$ 184,900

NO DEPOSIT

2013 Toyota Etios 1.5i XS 5-Dr

N$ 109,900

5,000

N$ 114,900

2010 VW Polo-Vivo 1.6i (AC + Mags)

Low Km’s

N$ 117,900

2013 Ford Figo 1.4i Trend 5-Dr

5,000

Low Km’s NO DEPOSIT

8,000

4x44x4

2013 Toyota Fortuner 3.0 D-4D A/T

N$ 394,900

NO DEPOSIT

N$ 279,900

2014 Kia Sportage 2.0i Ignite (F/L)

15,000

N$ 394,900

2012 Jeep Cherokee 3.0 V6 CRD LTD

NO DEPOSIT

4x44x44x44x4

Finaid RunduGalaxy Shopping Mall

Shop G4Rundu

066-255542

Finaid Swakopmund1 Hendrik Witbooi Steet

Antonius GartenSwakopmund064-406075

Finaid Walvis BaySwabou Building

11th AvenueWalvis Bay064-206151

Finaid Windhoek 1Damara House

Independence AvenueWindhoek

061-225654

Finaid Windhoek 2Shop 3

Forum BuildingWindhoek

061-227439

Finaid Windhoek 3Old Mutual Arcade

Shop 4, Independence Avenue, Windhoek

061-232474

Finaid Windhoek 4BPI House

M-Floor, Independence Avenue, Windhoek

061-272505

Finaid GobabisTau Shopping Centre

Church StreetGobabis

062-563551

Finaid Grootfontein20 Hage Geingob Avenue

Grootfontein067-242962

Finaid KaribibMain Street

Karibib064-550385

Finaid LuderitzHafen Strasse

1st Floor, Block HRoom 5A, Waterfront

Luderitz063-204050

Finaid OndangwaFirst City CentreC/O Main Road &

Freedom Square Street, Ondangwa065-240448

Finaid OshakatiGame Shopping Centre

Shop D3COshakati

065-224410

Finaid Otjiwarongo27 Hage Geingob Street

Otjiwarongo067-304199

“AT FINAID IT’S ABOUT MAKING MONEY ACCESSIBLE”

FINANCIAL SERVICES

Money Matters ... Today. Tomorrow. For a lifetime25 June 2015 20

Figures compiled by BUSINESS/PARTNERS show that 34% of business failures are caused by poor financial management. Add to that the 12% that fail because of poor record keeping, and it becomes clear that almost half of all business failures

could have been avoided had the business owners done something to improve their financial management. In contrast, only 12% of business failures are caused by bad economic conditions. If ever there was a succinct and powerful argument for focussing on your financial management, this is it.

Here are ten ways in which you can survive the tough year ahead through better financial management:

Limit your capital expenditure

It is very easy to over-extend in a weak economy. One can safely say that when a business expands, for example by opening up a new branch, the owner will underestimate the operational difficulty and the cost. When that happens in an economic slump, the results can be fatal. The danger is even higher if you extend into unfamiliar markets or industry. As a general rule, don’t try to expand during an economic downturn.

Of course many opportunities open up during a downturn, not least because many of your competitors may run into trouble. The general rule cannot be absolute, and carefully considered expansive moves always have a place in your strategy. But be very careful.

Don’t cut back on marketing

The first thing that business owners tend to cut back on in times of trouble is marketing, because the results of a business’s marketing effort is less immediate and tangible than, say, production. It therefore seems that a business can do without it for a while. But this is generally a mistake. If anything, when times get tough, a business should increase its visibility in the market.

By all means stop spending on wasteful marketing projects. But your focus on your business’s marketing must become sharper, and you and your team must increase your time and energy on marketing. A good place to place the focus of your marketing effort is with your existing clients. Expand your offer to them. Is there something you can sell them over and above their usual purchase?

Learn about financial management

You don’t have to be an accountant or be trained as a financial director. The most successful business owners know their shortcomings and hire financial experts. But as owner-manager you must be able to understand and use the main outputs of a good financial management system.

For example, do you know what the current assets/ liabilities ratio of your business is? Do you know what it should be? Do you know your debtors turnover, your creditors’ turnover and your stock turnover? Do you have targets set up for these?

If you don’t, it is time to learn the basics. Do a course, read a book or sit down with your accountant or auditor for some learning sessions.

Review your debtor management system

Here is a quick checklist to ensure that your business has robust systems to allow you

to sell on credit and survive a downturn. Do you have an efficient:•Creditvettingprocess?•Creditpolicy–rulesofwhogetshowbigacreditlimit?•Properrecordsofyourdebtorsandtheiractivities?•Amonitoringsystemtoensurethatdebtorsremainwithintheirterms?

Review your creditors

Remember that times are tough for your creditors too. This means that some are going to clamp down on any further credit, but some may be willing to give you better terms because they need your business. Renegotiate and review your terms.

Keep your promises and be proactive in communicating with your creditors about any payment delays. A creditor age analysis must for part of the financial management documents that you routinely consult to gauge the health of your business.

Check your stock system

Stock is tied-up cash, and in tough times you need to free up as much cash as possible. Keep the minimum stock levels you can get by with. It will require that you know the stock turnover for all your lines, so that you can focus on getting rid of your slow-moving stock, even negotiating to return it or replacing it with faster-moving items.

You will not survive if you do not have a robust stock recording system. And rather keep the keys of the stock room yourself.

Manage your bank account

A core feature of your credit record is how you manage your back account. Stick to your limits and arrangements with the bank, bank all your cash so that your account reflects the true size of your turnover, and be proactive when you see trouble brewing. Let the bank know if an arrangement can’t be met.

Improve your invoicing

A good invoicing system will ensure that your invoices are sent out on time, and has built-in mechanisms to make sure invoices are paid on time and to follow up if they’re not.

Sell unproductive assets

Let go of any emotional attachment to old, unproductive assets or pet projects that didn’tworkout.Sellthemandusethecash–andspace–moreproductively.

Have a plan system

Every business owner has a plan, some in their heads, some scribbled down on random notes, and some in more formal formats. Somehow, the most successful business owners are those whose plans:• Includedetailedcash-flowforecasts• Areroutinelyupdated–onceamonthatleast• Areroutinelyused,studiedandreferredto.

www.businesspartners.com.na

Ten financial management tips for tough timesEloiseduPlessis,CountryManager,BUSINESS/PARTNERS Namibia

BUSINESS/PARTNERS data gathered over years of working with business owners tell a fascinating story about business survival.