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Do not delay your journey to financial freedom – the earlier you start the better

Do not delay your journey to financial freedom – the earlier you start the better

By Hilaria Craig, Marketing and Communications Manager, Sanlam Group.

With more than 20% of Namibia’s working population supporting more than their immediate families, saving from an early age is crucial to break the dependence cycle.

A sizeable number of Namibian households has more than one generation living under one roof. Individuals who find themselves having to support both their parents and children are financially so squeezed that they often don’t save enough for their own retirement.

The irony is that a lack of retirement savings on their parents’ part is usually the reason why they find themselves in this situation in the first place. So unless they save enough, they risk being in their parents’ position when they retire.

I believe that breaking the dependency cycle and achieving financial freedom is possible if you follow the right steps. Here are a few steps to start your journey to financial freedom:

Step 1: Get other family members to help

You may be avoiding frank financial conversations with your dependents for the sake of peace. However, this may soon cause more financial problems and resentment. Open conversations may help you adapt the family’s lifestyle in line with your financial constraints. You may also identify means to earn additional income or find ways in which dependent members of the family can also contribute to the household finances.

Step 2: Get a grip on your debts

Indebtedness often goes hand in hand with supporting dependents for extended periods of time. Servicing debt may thus consume a large chunk of your disposable income.

Pay off debt with the higher interest rate first and try to stay away from bad debt. But while paying off debt is more pressing, try to strike a balance between this immediate expense and saving for retirement. Playing catch-up on retirement savings can be very costly since the later in life you start saving, the less you benefit from the compound power of fixed income savings.

Step 3: Talk to a financial planner

A qualified financial planner will consider the entire family situation when assessing your needs. He or she can help to clarify financial constraints and imperatives as part of a holistic picture, while also identifying areas where extra savings can be unlocked by utilising tax incentives on products like retirement annuities or tax-free savings accounts.

Don’t delay, start today and plan your financial future!

About The Author

Guest Contributor

A Guest Contributor is any of a number of experts who contribute articles and columns under their own respective names. They are regarded as authorities in their disciplines, and their work is usually published with limited editing only. They may also contribute to other publications. - Ed.

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.