1. About the Bankers Association of Namibia

The Bankers Association of Namibia (BAN) was established in 1997 and incorporated as a non-profit association under section 21 of the Companies Act 28 of 2004 as the representative trade association for the commercial banking sector in the country. BAN deals with non-competitive issues of common interest and significance to the banking industry in Namibia. Banker’s Associations are common in most countries. You will find, for example, a Bankers Association of South Africa, which operates under similar regulations.

The objectives of BAN are to provide a forum:

• To consider policy matters impacting the Namibian banking industry.
• To discuss common concerns and issues.
• To communicate with the Government and all the regulators on matters affecting the activities of banks; and
• To serve as a platform where members deal with non-competitive issues of common interest and significance to Namibia’s banking industry.

1. Members

BAN members are Bank Windhoek Ltd, First National Bank of Namibia Ltd, Nedbank Namibia Ltd, Letshego Namibia Ltd, Trustco Bank Ltd, Bank BIC Ltd, and Standard Bank Namibia Ltd. In terms of the BAN Articles of Association, other financial institutions can also apply to become members. BAN’s membership is, therefore, not limited to traditional banks as we know them.

1. BAN Structure

A Chairperson manages BAN on a rotational basis of its members. Currently, the Chair is Bank Windhoek Limited, assisted by the Chief Executive Officer, Mr Brian Katjaerua, whose contact details appear below.

2. Vision, Mission, Values

BAN’s Vision is to contribute to the sustainability of banking and the socio-economic development of Namibia. This Vision deliberately underscores the symbiotic relationship between banking sustainability and the country’s economic growth, as we believe one cannot exist without the other.

BAN’s Mission is to be the forum for the advocacy of matters of policy affecting the banking industry in Namibia and to provide balanced input guided by sustainability, innovation, fairness, financial inclusion and transformation. BAN believes that every policy proposal must be driven by its impact on banks from a sustainability perspective. Inevitably, the policy will also affect the country’s economic development. Because banks, through the provision of funding and other value-added services, are at the forefront of the economic development of any country.

BAN believes that every policy proposal must promote and enable innovation in the financial services industry, benefit the consumer, and promote financial inclusion. BAN further believes that every policy proposal and input is based on fairness and respect to the regulator, the banking industry, and all stakeholders. Finally, BAN is fully committed to transforming the banking industry, which speaks to local ownership structure and employment equity.

BAN’s values are Trust, Accountability, Agility, Ethical conduct, and Effectiveness. All stakeholders must trust banks, and implicit in this is the commitment by banks to subscribe to and uphold the highest ethical standards. All banks have ethics policies in place that have “zero tolerance” for unethical behaviour. Accountability speaks to the commitment by banks to be accountable for all bank decisions and actions, while Effectiveness speaks to the commitment by banks to ensure that all decisions, actions, and engagements with all stakeholders lead to the instant and effective resolution of stakeholder challenges or pain points.

3. Strategic themes (focus areas)

BAN’s key focus areas are:

• Market conduct – Improved focus on market conduct initiatives aimed at treating customers fairly through services and products offered. This includes consumer education initiatives.
• Research-based advocacy – Conducting research on key banking trends and providing input on crucial banking legislation, with a specific focus on the sustainability of banking and socio-economic development.
• Stakeholder engagements – Improved mutually rewarding relationships with key stakeholders premised on trust and continuous and fruitful engagement on matters affecting the Namibian economy and the industry.
• Innovation – Being the first mover on well-researched new banking trends and facilitating innovation in the banking industry.

4. What BAN is not

BAN is an organisation primarily focusing on policy issues of non-competitive nature affecting the banking industry. BAN is, therefore, not:

• A banking institution takes deposits from clients and financing clients as with banks.
• A higher forum for banking customers to approach to resolve their disputes with banks; or
• a trade union.

BAN does not own ATMs and does not hold customer deposits or disburse cash. BAN does not host a database with any individual bank’s customers. Finally, BAN is not a forum where banks meet to discuss and decide on pricing issues. BAN is also not a platform to discuss any information of a competitive nature or strategies on how to bypass or break any applicable law.

5. BAN website

Please visit www.ban.na for more information on the activities of BAN, and interesting consumer education articles on banking.

6. BAN Contact details

Unit 18, Tenbergen Office Complex, C/o Robert Mugabe and Julius Nyerere Streets, Windhoek, Email: brian@ban.na; cosec@ban.na; admin@ban.na.

Development Bank of Namibia’s Head of Marketing and Corporate Communication, Jerome Mutumba, on the informal and micro-enterprise.

The recent emphasis on empowering informal and microenterprises is a necessary affirmation for Namibia’s economic development. Development of new market spaces, as well as ongoing management and upgrades to SME parks, are seen as positive indicators for the future.

An examination of Namibia’s recent business history reveals three major sources of new ventures. The first type is the local start-up, which is usually an unregistered or registered, regulatory-compliant micro-enterprise. The second is a South African adjunct, which is a business that supplements the South African parent. An international start-up is a third and rare type.

The informal or formal micro-enterprise is arguably the most productive of the three for Namibia. Many of Namibia’s best-known brands and companies have local, micro origins, according to a survey of large Namibian enterprises.

The roots of these enterprises’ success and sustainability can be found in their small, relatively low-cost beginnings, as well as their owners’ persistence in learning, adapting, and diversifying. Thus, by example and inference, a broad base of informal or formal micro enterprises must be fostered in order to develop large, economically significant, and sustainable Namibian enterprises.

However, the value of the progression from an informal enterprise to a large formal enterprise is difficult to predict, especially given the attrition of informal enterprises in particular.

The economic value of informal and micro enterprises becomes more apparent when evaluated according to current development needs.

Firstly, the informal enterprise is a major employer. Recent findings by the International Labour Organisation (ILO), as reported in the Namibian newspaper on 6 September 2022, show that 56% of Namibia’s workforce is employed in the informal sector. According to Tangeni Shindondola, Director of the Dynamic Informal Traders’ Association (DITA), as reported in the Namibian newspaper on 15 February 2022, the informal enterprise becomes an employment provider in the event of retrenchments.

Secondly, the informal enterprise is known to be a sole form of income for many households, or augments household incomes, particularly where those households are in poverty or on the verge of poverty.

Thirdly, informal and microenterprises are important elements of the value chain as off-takers and distributors of goods and services. This is true of goods and services produced by large and medium-sized enterprises, with attendant impacts on formal enterprise revenues and employment. Informal and micro enterprises also generate network business on a peer level, creating their ecosystem.

To reap longer-term benefits from the informal and micro-enterprise sector, activities need to be viewed and planned in four phases.

Firstly, the nascent informal enterprise needs to be nurtured and enabled. Secondly, those informal enterprises with a potential need to be encouraged to transition to formalised, registered, regulatory-compliant microenterprises. Thirdly, microenterprises need to be nurtured to the activity level of SMEs. Finally, the most successful SMEs need to graduate to larger enterprises.

What is obvious is that the process of growth of informal and micro enterprises requires support and inducements.

A first inducement is a welcoming approach to start-ups. This requires the liberalisation of the regulatory environment for informal enterprises and the removal of early barriers. Although regulation is required, that regulation should be exerted gradually, post-start-up based on the impact on the community as well as the level of activity of the informal enterprises.

A second phase will be required to induce the formalisation of the informal enterprise to become a fully-fledged micro-enterprise, including full regulatory compliance.

The shift from informal enterprise to registered microenterprise entails costs which must be offset, including taxation and regulatory costs. To reduce the immediate burden, the enterprise will be required to grow, which will come at an expense. This can be offset with short-term bridging finance for stock and regulatory costs, and longer-term mezzanine finance to grow the asset base. This might be paired with concessional interest rates and the use of assets financed as collateral.

What is also apparent is that formalisation requires an augmented skill set to manage finance in a borrowing environment, as well as administer the regulatory aspects. This can be addressed with mentoring and coaching of the type envisaged by the Bank of Namibia’s SME Financing Strategy.

What is implicit in a policy that nurtures informal and microenterprises is the need for a suitable agency to administer and coordinate finance, mentoring and coaching.

The further benefits of an agency of this nature are that it will set the standards for services, and act as a control against predatory providers of microfinance. In addition, it may become a reference point for conducive regulatory practices. Finally, it may become a repository of knowledge and a brains-trust for the informal and microenterprise sectors.

Development Bank of Namibia, by design, is intended to finance large enterprises in the first place, as well as SMEs. It does however provide finance through its Apex microfinance facility for qualifying microfinance providers. In this way, the Bank currently complements the development impact of micro-lenders.

As much as Namibia’s future depends on policy-based lending to finance renewable energy, serviced land, affordable housing and young entrepreneurs, it will also need to develop policy-based stimulus for informal enterprises and microenterprises.