Select Page

NEEEF champions propose buyouts

Staff buyouts are among the best ways that businesses can benefit from the New Economic Empowerment Framework Bill, the Prime Minister, Right Honourable Saara Kuugongelwa-Amathila said this week, describing her office’s view how best the private sector can benefit from the new equity law.
“Private businesses are a national asset. The incentive of having core employees become shareholders is a good thing,” the Prime Minister said during her officiation of the ownership restructing of the furniture group of companies, Officeeconomix, in Windhoek this week.
The furniture group described its decision to divest a part of its shareholding to its employees in preparation for the new equity law as supporting the government’s efforts to correct economic inequalities.
“We are working hard to conclude our consultation process with all stakeholders,” the Prime Minister commented on Officeconomix’ proactive response to ongoing government efforts to restructure ownership and management for tangible corporate social responsibility. “Balancing a need for diversity against whether the principle [of NEEF] is in the right direction depends on whether the principle [of NEEF] is being embraced by private business.” Kuugongelwa-Amathila said.
The current ongoing regional consultations on the NEEF Bill, the Prime Minister said, will all be taken into consideraton in the process of crafting the appropriate legislation.
She said that businesses and their staff teams can build generational wealth for many households through the soon to be enforced Bill by offering buyouts.
Former Officeconomix CEO, Paul Oosthuizen, is stepping down to Leslie Burger as the new CEO. “There is no window dressing in doing this, Oosthuizen said at the handing over of gifts to his staff members.
The new CEO believes that building the company further means co-operation with the government’s vision.
Expansion of the local economy, the Prime Minister believes, requires the inclusivity of the majority of people to increase the level of competitiveness and productivity of the national workforce.
In the case of the Officeconomix Group of Companies, in existence since 1994 with stock valued at over N$15 million, it will not only empower workers but promote harmonious labour relations, increase workers productivity and promote the loyalty of the workers to the company.
“These types of initiatives where business owners create opportunities for their employees to own part of the businesses in which they work should therefore be commended and fully supported” stated the Prime Minister adding that such initiatives provide an opportunity to staff to gain direct equity ownership of their business and create an entrepreneurial environment. “Do not panic”, Kuugongelwa assured.
“Taking into consideration and evaluating all inputs from consultations will be a feat considering the muliplicity of issues and solutions.” The NEEEF Bill proposes that companies avail 25% of shareholding to previously disadvantaged persons.
Speaking on behalf of the Office of the Prime Minister, Eos Capital, a wholly-owned Namibian newly incorporated private equity fund manager that is managing the Allegrow Fund said companies and funders will need to come together to find progressive ways of helping the average Namibian to participate in the ownership of companies.
Furthermore, the management of Eos Capital under the leadership of former Old Mutual Africa Managing Director, Johannes !Gawaxab said that companies will be given time to adhere to the mandatory empowerment pillar which is not an immediate need. “Companies may allocate a portion of shares to their staff and allow staff to buy those shares over time from the dividends the shares receive. Or companies can list on the NSX and allow individuals access to their shares in smaller units and at more affordable prices” Eos Capital suggests.

About The Author

Typesetter

Today the Typesetter is a position at a newspaper that is mostly outdated since lead typesetting disappeared about fifty years ago. It is however a convenient term to indicate a person that is responsible for the technical refinement of publishing including web publishing. The Typesetter does not contribute to editorial content but makes sure that all elements are where they belong. - Ed.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.