Making Things Happen
The secondary listing of the Nedbank Group on the Namibia Stock exchange (NSX) on Friday morning, the 23rd of February signals the company’s commitment to the development of the country and providing Namibian investors access to the shares of the Nedbank Group.
Nedbank Group, with a market capitalisation of more than R60 billion, is South Africa’s fourth largest banking group and has been listed on the JSE Limited since 1969.
All three companies in the Old Mutual Group, namely Old Mutual plc, Nedbank Group and Mutual & Federal, are now dual listed in Namibia.
Denys Denya, Managing Director of Nedbank Africa, said the listing signals Nedbank’s commitment to the growth and prosperity of Namibia.
“The listing builds on other important Nedbank milestones. Nedbank Group, together with Old Mutual and Mutual & Federal, last year concluded the largest and most broadly-based BEE transaction in Namibia, which included the introduction of black equity ownership to the value of 11,13% of Nedbank’s Namibian business,” he said.
The transaction is expected to benefit over 250 000 black Namibians directly and indirectly, including employees, strategic business partners, distributors, trade union members and their families, womens’ organisations and church groups,” he said.
Denya said over the past two years Nedbank Namibia has increased its branch network by more than 50% to bring banking services closer to the people of Namibia, with further expansion planned in the next few years.
The Minister of Finance Saara Kuugongelwa-Amadhila, who officiated at the listing, ringing the stock exchange bell in traditional manner, in her address to the business league in attendance at the breakfast celebration, expressed her satisfaction of the launch of the dual listing of one of the most prominent South African companies in Namibia on the local stock exchange. Indeed, the majority of companies listed on the NSX are dual listings from the Johannesburg or London exchanges. Such enterprises make up more than 99 percent of NSX market capitalisation and 98 percent of transactions recorded in 2006.
“At the current stage of financial market development in Namibia, I cannot stress enough how important these secondary listings are for the functioning of our undersized market. The NSX leads still a marginal existence in the Namibian economy, noted by a share turnover of a mere 16 percent of GDP. To boost its clout, both secondary listings and local participation need to be encouraged,” she stressed.
A secondary listing in the local market can be beneficial to Namibian investors and foreign companies alike. NedBank has profitable operations in Namibia and the bank’s move to become listed on the NSX, makes it easier for Namibians to invest in the company and share in its profits. The Finance Minister encouraged other foreign groups to follow suit; as it can be to everyone’s benefit if the local shareholder and customer bases become more integrated.
She moreover commended the Nedbank Group secondary listing, as it will contribute to meaningful BEE which can help transform Namibia into a more equitable society. “It is therefore commendable that Old Mutual have taken the step to introduce black equity ownership of 11 percent of NedBank’s Namibian business,” Kuugongelwa-Amadhila noted.
According to the Finance Minister, public listings offer great advantages to both local companies and investors. Firstly, issuing shares to the public provides an alternative to raising funds by taking out a bank loan or issuing bonds. The market will reward good management decisions with increased investor demand and thus higher share prices. Anchoring a company in the stock market is thus a good way to improve efficiency in Namibia’s industries. A second benefit is that an increase in investment opportunities can help to stem the continuing outflow of capital from our country.
The Chairperson of the Namibia Stock Exchange Peter Koep noted that Nedbank is the 3rd of the four southern African banks with a direct interest in Namibia to list on the NSX. Based on research, banks have significantly outperformed the index for the last 45 months, reflecting in positively already in the 2007 turnover.
The diversification of risks at global level is vital to growing the Namibian economy at a faster pace, Koep noted and challenged Nedbank Namibia to list bonds on the NSX in the near future, as Government and Corporate bonds have had a good run, and according to NSX statistics that the sovereign rating is beginning to show positive results.
Both the Finance Minister and the NSX congratulated NedBank for its excellent performance, for having passed the due diligence and for dual listing on the NSX, encouraging other major corporate’s to follow suit, as it is vital to grow the Namibian economy. The Finance Ministry and the NSX would do all in its power to make NSX listings attractive.
Nedbank has been operating in Namibia since 1973 and has over 3 000 corporate clients and more than 50 000 retail customers.
Over the next few months, Nedbank Namibia will continue to expand.

Nedbank Namibia’s dual listing on the Namibia Stock Exchange saw members of the Old Mutual, Nedbank and Old Mutual Group enjoy a celebration breakfast to herald the strategic move. (fltr): MD of Old Mutual Africa Johannes !Gawaxab; Board member of Nedbank Namibia and MD of Nedbank Africa Denys Denya; the Minister of Finance, Hon. Saara Kuugonghelwa-Amadhila; Chairperson of the Nedbank Namibia Board, Theo Frank; the MD of Nedbank Namibia, Bill Turton; MD of Old Mutual and Federal, Gerson Katjimune and Nedbank Namibia’s Deputy MD, Erasmus Hoveka.