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Private Portfolio – Welcome to the Real World

Over the last few months I gained some first hand exposure to what it means, financially speaking, to become old and frail.
Much has already been said and written on this subject and there are many campaigns aloof to raise awareness of the financial implications of going into retirement and that this retirement can become a lengthy one.
Unfortunately it seems a feature of our human nature to address the many possible negative situations one may face in future with the attitude that this event will not happen to me or that it is too far in future to contemplate at all.
This attitude does help to maintain a positive outlook on life instead of just fretting about all things that may go wrong and thereby forget to live.
However, when one does get confronted with the reality then the coin drops but it may be just a little too late.
For this reason I like to share some of my recent experiences. Having spent some time visiting old age homes and frail care centres and having listened to conversations amongst the folk that reside or visited there, a few issues were hammered home again.

Being taken up in frail care can cost anything between N$12 000 to N$15 000 per month. To this amount one can add ongoing expenses like medical aid membership (if you are fortunate enough to belong to one) that can also amount to anything from N$2 500 per month upwards depending on age and scheme option.
Add a few sundry expenses and you are closing in on N$20 000 per month. In case of frail care a medical aid fund may come up for a portion of the expenses but that is very limited to say the least.
With no public or governmental social security system in place and none envisaged for the future that could cater for these situations, many of us will be at the mercy of the private sector to obtain such benefits.
Make no mistake; this is not unique to us in Namibia. Even the most developed nations with very sophisticated social security systems in place are reeling under the pressure to care for their ever increasing number of aged.
In many cases that I witnessed the pensioner’s children or family is called upon to defray a large portion of these expenses. This in itself is problematic since many of them have enough expenses to contend with themselves.
Furthermore with the advent of globalisation many families are spread all over continents and are neither in the proximity nor in the financial position to assist.
This always brings one back to the bottom line question of how much money do I need?
My personal rule of thumb under the current investment return environment on low risk investments is to say that for every N$4 000 per month initial income, you need N$1 million in capital to cater for inflationary increases thereafter.
So, to cover an N$15,000 per month income, a capital base of N$3,75 million may see you through over a medium to longer term.
To me these are frightening figures. All I can say for now is that we have again been given an opportunity with the recently announced income tax relief measures to seriously consider investing as much of the extra disposable income as one possibly can.

 

About The Author

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.