Reinvesting Is a Business Imperative

OSCAR Capelao, Chief Financial Officer of FNB Namibia has aised Namibians to invest their savings in the local economy.

“We must have confidence in our own economy. To attract more investments emerging markets have to offer attractive returns versus the home countries from which the foreign direct investment (FDI) comes from,” Capelao said this week.

He said globally capital will seek better yields. “Repatriation of capital is part of FDI and is to be expected.”

“Namibia must continue to improve its global competitiveness levels against other developing countries to be on the minds of investors when they think of emerging markets. To attract more FDI, investors need the comfort that they can repatriate capital if need be,” he said.

He said clear, transparent and stable economic policies gives foreign investors’ confidence to invest and reduces the sudden movements of capital.

Capelao said tax rates need to be competitive in line with other countries in the region.

The 201314 Global Competitiveness Report ranked Namibia 90 out of 143 countries (behind Mauritius, South Africa, Rwanda, Botswana and Seychelles among sub-Saharan African countries), a slippage of 16 places since 201011.

FNB Namibia’s total equity at June this year amounted to N$2,8 billion. Total aances to clients amounts to N$19,9 billion, of which N$9,6 billion is for housing.

Source : The Namibian