The Namibian Financial Sector Charter was introduced by the Ministry of Finance in November 2008. The NFSC is a voluntarily adopted transformation charter, which constitutes a framework and establishes the principles upon which empowerment will be implemented in the financial services industry in Namibia. The objective of the charter is to facilitate the transformation of the Namibian financial sector and to bring about tangible benefits for Namibians. Standard Bank Namibia through the Namibian Bankers Association is a signatory to the charter. The bank is committed to achieving full compliance with the minimum targets for 2014 and 2019 as set out in the charter. “Standard Bank Namibia aims to achieve specific targets that are set for the following pillars of the charter: ownership and control; human resources development; preferential procurement and enterprise development; corporate social investment; empowerment financing; and lastly, access and affordability of products and services,” explained Advocate Sigrid Tjijorokisa, Group Company Secretary of Standard Bank.
The Namibian FSC is a voluntary document and quite similar to the 2003 version of the South African FSC. Unlike NEEEF it does have a procurement element but seems to be based on narrow principles.
Key principles are to be applied when calculating BBEE procurement expenditure. This will include each financial institution categorising its suppliers, both current and potential, into the following:
- BBEE-owned companies
- BBEE women-empowering companies
- BBEE-empowered companies
- BBEE-influenced companies
- Designated groups
Procurement spend ramps up from 30% in 2014 to 60% in 2019. No calculation formula is provided but it might be similar to the one we use in SA.
Each financial institution has to conduct an independent investigation in respect of each of its suppliers to verify their BBEE status. BBEE suppliers should be registered with a rating agency recognised by the NFSC Council.
I'm aware of one or two rating agencies in Namibia but they seem to be part time there doesn't seem to be enough business to sustain them.
I suspect the Standard Bank scorecard is measured without procurement.
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