Financial sector needs change

ACTIVITIES of the financial sector and its transformation towards the betterment of the country continue to be in the spotlight as the nation awaits the introduction of the Namibian Financial Sector Charter (FSC).

At the official launch of a publication dubbed the ‘Namibian Financial Sector Review 2007’, in Windhoek on Wednesday, Finance Deputy Minister Tjekero Tweya touched on the topical issue saying an initiative which gave an overall view of the important sector had been long overdue. He went on to say the publication – which is to become an annual issue – would equip Namibians with much-needed financial information and insight into the financial sector.Tweya said the notion of transforming the sector – mainly through Black Economic Empowerment – was to work towards a collective action plan which would have a bigger economic impact and ripple effect, rather than individual enrichment.”Transformation in the Namibian business spheres could be defined as the keystone of the foundation upon which our economy relies and/or lies.”As such, a considerable proportion of our time, effort and resources should be devoted to creating, administering, promoting and financing innovative efforts, the prime aim of which is to boost the number of previously disadvantaged businesses.”The FSC, which represents many industry sections including commercial banks, asset managers, micro financiers and insurance companies, is still in draft form and expected to be launched in January next year.Tweya said the Government needed the industry to come up with the FSC which would provide guidelines for meaningful broad-based empowerment.The Deputy Minister expressed dismay at the slow or minimal support by the financial sector to small and medium-sized enterprises (SMEs).He said SME operators, especially those in the rural areas and those involved in manufacturing, needed a lot of assistance to grow their businesses.”I am of the opinion that the industry has reacted slowly to supplement the Government’s initiative to grant short to long-term credit to SMEs that have shown growth potential,” said Tweya.The ‘Namibian Financial Sector Review 2007′ was published by Intermedia Marketing Communications and edited by Gareth Amos and Jacques de Witt.The editors’ note reads that the publication is a ‘comprehensive and contemporary synopsis of an industry …which is undoubtedly one of the most well-developed sectors of Namibia and a major contributor to our nation’s economy.’He went on to say the publication – which is to become an annual issue – would equip Namibians with much-needed financial information and insight into the financial sector.Tweya said the notion of transforming the sector – mainly through Black Economic Empowerment – was to work towards a collective action plan which would have a bigger economic impact and ripple effect, rather than individual enrichment.”Transformation in the Namibian business spheres could be defined as the keystone of the foundation upon which our economy relies and/or lies.”As such, a considerable proportion of our time, effort and resources should be devoted to creating, administering, promoting and financing innovative efforts, the prime aim of which is to boost the number of previously disadvantaged businesses.”The FSC, which represents many industry sections including commercial banks, asset managers, micro financiers and insurance companies, is still in draft form and expected to be launched in January next year.Tweya said the Government needed the industry to come up with the FSC which would provide guidelines for meaningful broad-based empowerment.The Deputy Minister expressed dismay at the slow or minimal support by the financial sector to small and medium-sized enterprises (SMEs).He said SME operators, especially those in the rural areas and those involved in manufacturing, needed a lot of assistance to grow their businesses.”I am of the opinion that the industry has reacted slowly to supplement the Government’s initiative to grant short to long-term credit to SMEs that have shown growth potential,” said Tweya.The ‘Namibian Financial Sector Review 2007′ was published by Intermedia Marketing Communications and edited by Gareth Amos and Jacques de Witt.The editors’ note reads that the publication is a ‘comprehensive and contemporary synopsis of an industry …which is undoubtedly one of the most well-developed sectors of Namibia and a major contributor to our nation’s economy.’