Absa still keen on Namibia

Absa is still interested in investing in the Namibian banking industry, the bank’s Deputy Chief Executive Louis von Zeuner, confirmed to Nampa in an e-mail yesterday.

Namibia remains an attractive market, and Absa remains interested to get into the Namibian market to expand on the activities of its representative office here, Von Zeuner said. 

“We continue to work with all role-players to find a solution. As can be seen from recent developments in other markets, banking today is a global play, and to remain competitive, local banks can benefit from the involvement of global banks,” he said.

There has been mixed reaction on the decision by the Bank of Namibia (BoN) to block the bid by Absa to buy a controlling stake in financial firm Capricorn Investment Holdings, which controls Bank Windhoek, Namibia’s only wholly-owned local bank.

Ipumbu Shiimi, the BoN Governor told reporters two months ago that the central bank denied Absa’s application since it is concerned that should the transaction be approved, all domestic banks will be majority foreign-owned, which is not in line with national development objectives.

According to a media report in the weekly Southern Times newspaper, Absa and the BoN are in “informal talks”.

Shimi is quoted  as saying: “What was rejected is the application in its previous configuration. Absa is welcome, as long as they are not taking majority shareholding. We are talking of anything which is not above 51 per cent.”

Meanwhile, Bank Windhoek last week attained the status of being the second-largest bank in Namibia after its Managing Director, James Hill, announced the 2009-2010 financial results for the year ended 30 June 2010.

First National Bank Namibia is in first spot, with Standard Bank Namibia third.

Hill reported that Bank Windhoek increased its market share by 30 per cent, and a net profit of N$247,4 million, which is an increase of 18 per cent over the previous year. – Nampa

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