Capricorn Investment Holdings (CIH) identified Nam-mic Financial Services Holdings (NFSH) as an ideal broad based strategic empowerment partner of the group in 2003. NFSH was, at the time, wholly owned by the National Union of Namibian Workers (NUNW) and a number of trade unions affiliated with the NUNW.
CIH, through a contribution of capital and arrangement of deal finance by Bank Windhoek, facilitated the acquisition by NFSH of a 7.5% shareholding in Capricorn Group (then Bank Windhoek Holdings). CIH also brokered investments by NFSH in Sanlam and Santam and further investments in Capricorn Group. At 30 June 2018, NFSH owned 10.2% of Capricorn Group, 16.4% of Sanlam and 12.0% of Santam. The net asset value of NFSH based on the fair value of its investments amounted to N$1.3 billion at 30 June 2018, making it the most successful and strongest broad-based BEE company in Namibia.
Capricorn Group has distributed N$234.7 million as dividends to NFSH since its inception, with 69% of that amount being for the benefit of more than 93,000 previously disadvantaged Namibians.
NFSH beneficiaries include the members of the Mineworkers’ Union of Namibia, the Namibia Public Workers’ Union, the Namibia Food and Allied Workers’ Union, the National Teachers’ Union of Namibia, the Namibia Transport and Allied Workers’ Union and the Namibia Farm Workers’ Union.
Dividends from all its investments flow to NFSH, which in turn declares dividends that are paid to the respective investment trusts of the union shareholders. Each trust allocates and shares these dividends in terms of its own empowerment and development objectives.
Through these dividends, support is provided to education through bursaries, training, community projects, housing and health programmes.
Empowerment is not effected through dividends only. In collaboration with its strategic partners, NFSH has developed financial services and products for union members, including microloans, life and funeral insurance, short-term insurance and the Nam-mic CellCard, a multifunctional membership card that facilitates banking and loyalty transactions.
According to Walter Don, the chief executive officer of NFSH, the company’s dream is to support value creation over the next five years by ensuring that at least one third of its union members own property, have life cover and use a savings instrument.
Capricorn Group is proud of its association and strategic partnership with NFSH and the role it played in the development and growth of NFSH.