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Old Mutual profits up 58%

Diversified financial services provider, Old Mutual Namibia has recorded a 57.5% jump in pre-tax adjusted operating profit to N$449 million for the 2012 financial year.
Managing Director for Old Mutual Africa Operations, Johannes !Gawaxab attributed the big jump in profits to improved sales in both non-life sales (21%) and life sales (4%) as well as the positive investment returns in the company’s fund management operations.
Non-life sales increased by 21% to end the year at N$5.46 billion compared to N$4.52 billion in 2011 while total funds under management increased 22% to N$26.6 billion.
In an interview with the Economist, !Gawaxab said: “The equity markets have been doing very well and we had very good operational efficiencies in the business and there were a couple of once-offs in terms of the experience variances; less people died than we had forecast.”
In the period under review, Old Mutual recorded a return on capital of 49% up from 37% the previous year despite expenses increasing 13% to N$550 million. !Gawaxab explained the increase in expenses: “That’s basically more commission expenses. If sales are getting more, you pay more commission; if sales are doing well, your commission expenses are going to increase. The core expenses were very much inflationary increases and the big jump in increases is very much a function of an increase in sales.”
While the Namibian operations for the international financial services group have been profitable, the Old Mutual supremo said the company has experienced challenges of economies of scale in the local operating environment.
“You have in other jurisdictions millions and millions of customers and in our case we have about 260,000 customers. So although it is a profitable operation, the economies of scale could be much better,” !Gawaxab said.
Scarcity of insurance skills and top leadership skills have also hampered the growth of the business as has the high unemployment rate which, !Gawaxab said, affects the business’ client base.
Going forward the Africa Operations MD said he expects the company to go from strength to strength.“It is a very well run organization; it is well positioned to benefit from economic growth; it is a business that over the next couple of years is probably going to become one of THE businesss in the country,” he said.

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

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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.