ENGLISH ABSTRACT: This study seeks to analyse the financial sector’s (commercial banks and the Bank of Namibia) policy interventions towards creating an inclusive financial system. To achieve this the objective of this study is in three folds, firstly to examine the level and extent of financial inclusiveness in Namibia, secondly to evaluate financial sector (commercial banks and the Bank of Namibia) policies to ascertain their effectiveness in promoting access to finance in Namibia, and thirdly to review international experiences to provide key learning lessons for Namibia’s financial system improvement. It is important that the problems associated with the high level of financial exclusion are understood. Through an analysis of the theoretical information and empirical results it is possible to establish how to improve financial inclusion which is critical for development and economic growth. Financial Inclusion (FI) has become a key pillar of development policy in a number of countries around the world on account of the fact that exclusive development is not sustainable. The paper explored the role of Mobile Money Services (MMS) in enhancing financial inclusion. The study was motivated by the proliferation of mobile phones amongst low income earners, the prepaid billing system sensitive to users’ incomes, adoption of ICT by government and the private sector that has enhanced e-commerce readiness of Uganda, as well as the launch of three Mobile Money Services in the country. A qualitative analysis of the web content of the three MMS providers was undertaken and focused on issues related to services provided; transaction charges; number of registered customers; number and volume of transactions; stakeholders; user interfaces and security; institutional relationships; policy and regulation; as well as appropriateness of the current business model(s). The findings indicate that while the MMS have enormous potential to enhance FI, it would require an open business model that involves all stakeholders to establish a truly national solution. Furthermore, the initial contribution of MMS to FI is in improving money transfer by lowering the transaction costs for small volumes. As a way forward, the regulatory authorities need to establish a legal framework that does not stifle innovation but ensures safety for customers’ savings. From the literature it becomes clear that there are various advantages associated with inclusive financial system. Various studies have demonstrated the positive correlation between financial inclusion and economic growth and poverty alleviation. Most of the data used in the study were collected by means of desk review for secondary data. Various articles and annual reports of commercial banks and regulators were analysed to provide an overview of the current state of financial inclusion in Namibia. However, primary data were also used to analyse the current initiatives of the commercial banks. The study finds that there are policy interventions that are in place and are being pursued by various players aimed at improving the public access to financial services. Results of the recently published FinMark2011 Survey report also indicate that 51 percent of adults are now included in the financial system compared to 31 percent recorded during the 2007 survey. Finally the study’s recommendations highlight various initiatives and activities which different stakeholders should undertake to improve the level of financial inclusion in the economy.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: This report presents a structured approach to design and implement a shared services model for Capricorn Investment Holdings (CIH), Namibia. Shared services are tactical by nature and aim to support the organisation's strategy. Shared services are the consolidation of support activities into a business unit which operates on business principles and focuses on value creation, and the leverage of the skills and knowledge in an organisation. The successful transformation to a shared services business unit requires the transformation of the employees (people), business processes, and technology. Without the required transformation shared services will remain "faddish-, and the organisation will not gain the full benefits associated with shared services. The banking operations under the CIH group, similar to the other banks in Namibia are under ever increasing pressure to reduce costs, improve service, develop and deliver high quality banking products. These issues are important to increase market share and profits in order to position themselves as leaders against both traditional and non-traditional competition. CIH group now has a perfect opportunity, with business in Botswana, Zambia and Namibia to build a shared services model suitable to its needs and also to support the group strategy to expand throughout Africa. Although geographically dispersed operations or transaction centres will not go the way of the dinosaur, companies must design and manage each support function according to the integrated and, when possible, standardised model. This framework should allow for necessary geographic, regulatory or cultural variations, while ensuring maximum control and management. It must also achieve economies of scale and leverage employee expertise. That is why CIH firstly started off, with the process blueprint project, which caters for standard processes, and will be rolled out to the rest of the banking business. Secondly, after completion of the process blueprint project, CIH is going to follow a component business approach in order to make the transition to a shared services model much easier. Component business models offer a proven approach to driving a specialised focus, both internally and externally. With this exercise, CIH will be in a position to identify both the core and non-core components of its banking business. This will enable the group to take an informed decision on which components to share and which should remain in the different business units. Thirdly, the group is going to redesign the supply chain. Especially with the shared services model, a much closer, deeper relationship with intermediaries and service companies should be built to ensure that the group move in a customer centricity way. The optimum relationship would be long-term cooperation, joint planning of sales strategy and operations, and shared knowledge in order to optimise business, develop innovative initiatives and continuously improve to consolidate market position. Further to this study, CIH is going to re-evaluate its value chain where the support activities in a single organisation are extended across organisations, multiple companies, divisions or business units to cater for its expansion strategy. Lastly CIH, with its approach to firstly sharing the IT structure, then business processes, still have a few critical decisions to make. The shared services centre involves finding and assessing service providers, determining geographies from which to source the services, like will it be Botswana, Zambia, Windhoek or South Africa? Other critical issues are developing contracts, defining service levels and a myriad of other tasks. Whichever road CIH chooses, successful implementation demands considerable front-end investment and cultural transformation. To clear these initial hurdles, the group, especially senior management, must be fully committed to significant change. Key to successful implementation is distinguishing between the types of services to share, developing service contracts, choosing shared services staff carefully, benchmarking the service against outside vendors, establishing a governance board and designing an implementation approach unique to the specific needs of the group. It is very important to ensure successful transformation of the shared services model, existing of all the projects currently running within the group. In order to do that the executive team should know that implementing shared services is not a simple process. The rollout and implementation will take time, at least one to two years. Finally, building a shared services model requires focusing on the internal clients. The solution is not a simple, quick fix, but calls for careful consideration and implementation of all the points made throughout the course of this research report, from strategy and design to governance and transparent metrics. / AFRIKAANSE OPSOMMING: Hierdie verslag stel 'n gestruktueerde benadering voor tot die ontwikkeling en implimentering van 'n gedeeldedienste-model vir Capricorn Investment Holding groep (CIH) Namibie. Gedeeldedienste is takties van aard en het ten doel om organisasie- struktuur te ondersteun. Die beginsel van gedeeldedienste impliseer die samevoeging van Ondersteuningsaktiwiteite en fokus op waarde ontsluiting en die hefboom van kennis en vaardighede binne die organisasie. Die sukses van transformasie na gedeeldedienste is afhanklik van die transformasie van die mense, prosesse en tegnologie in die organisasie. Sonder hierdie transformasie sal gedeeldedienste onsamehangend gelewer word en sal die organisasie nie die volle voordele daarvan geniet nie. Bankdienste binne die CIH groep, soos ook die geval is met ander handelsbanke in Namibie,is geduring onder toenemende druk om kostes te verlaag, dienslewering- standaarde te verhoog en bankprodukte van kwaliteit te voorsien. Hierdie aangeleenthede is belangrik om markaandeel te verhoog en wins te verseker, maar ook om die CIH groep te posisioneer as markleiers onder beide tradisionele en minder tradisionele rolspelers. Die CIH-groep is nou in 'n gunstige posisie met besigheid in Botswana, Zambie en Namibia, om 'n gedeeldedienstemodel daar te stel wat die groep se strategie vir uitbreiding in Afrika kan ondersteun. Alhoewel geografies wydverspreide operasies of dienspunte nie sal verdwyn nie, moet die onderskeie maatskapye ondersteuningsdienste ontwerp en bestuur volgens 'n geintegreerde en, waar moontlik, 'n gestandaardiseerde model. Hierdie raamwerk moet ruimte laat vir geografiese, wetlike en kulturele verskille terwyl dit effektiewe kontrole en bestuur moet verseker. Dit moet ook aan die beginsel van skaalekonomiee voldoen en moet die optimale benutting van vaardighede van personeel verseker. Om hierdie rede het CIH 'n projek geloots, Proses Witskrif, wat die standaard prosesse verval. Hierdie projek sal uiteindelik ook die res van die prosesse in die bank se besigheid insluit. Na voltooiing van die Proses Witskrif projek sal CIH 'n benadering volg van besigheid in komponente om sodoende die transformasie na 'n gedeeldedienste-model te vergemaklik. Die model van besigheid in komponente bied 'n beproefde benadering tot die implimentering van 'n gespesialiseerde fokus, beide intern en ekstern. CIH sal met die implimentering van hierdie projek beide kern en nie-kern komponente van die bank se besigheid kan identifiseer. Dit sal die groep in staat stel om ingeligte besluite te neem oor watter komponente gedeel behoort te word, en oor watter komponente in die verskillende besigheidseenhede moet bly. Hierna kan die groep die verskaffingsketting herontwerp. Om te verseker dat die groep sake doen in 'n klientgesentreerde manier, veral met die gesentreerdedienste-model moet hegter verhoudings met tussengangers en diensverskaffers gesmee word. Die ideale verhouding is een van langtermyn samewerking, gesamentlike beplanning van verkoopstrategiee, die implementeering van operasies, en 'n gedeelde poel van kennis om sodoende operasies, ontwikkeling van innoverende voorstelle en deurlopende verbetering van markaandeel te bewerkstellig. Vervolgens gaan CIH sy waardeketting herevalueer waar ondersteuningsaktiwiteite in die groep oor die grense van organisasie, maatskappye, afdelings of besigheids- eenhede strek om sodoende te beantwoord aan sy uitbreidingstrategie. Laastens sal CIH met 'n benadering van gedeelde tegnologiese platvorms en besigheidprosesse nog 'n paar kritieke besluite moet neem. Die gedeeldedienste-sentrum moet geskikte diens- verskaffers identifiseer en beoordeel, of dit in Botswana, Zambia, Namibie of Suid Afrika moet wees. Verdere uitdagings is die ontwikkeling van kontrakte en definiering van diensleweringstandaarde asook ander aspekte. Afgesien van watter rigting die groep mag inslaan, sal suksesvolle implementering 'n relatiewe hoe aanvanklike beleggings- en kulturele-transformasie verg. Ten einde hierdie aanvanklike hindernisse te oorkom, moet die groep, veral senior bestuur, ten volle toegewyd wees aan groot verandering. Die sleutel van suksesvolle implementering le in die vermoe om te bepaal watter dienste gedeel moet word, watter standaarde van diensleweringooreenkomste te ontwikkel, personeel wat gedeelde dienste moet lewer noukeuring te kies, dienslewering te meet aan standaarde van eksterne verskaffers, 'n beheerliggqaam te vestig en 'n benadering tot implementering te ontwerp wat die spesifieke behoeftes van die groep kan vervul. Dit is belangrik om te verseker dat suksesvolle transformasie van die gedeeldedienste-model alle bestaande projekte kan akkomodeer. Die kompleksiteit hiervan moet nie deur senior bestuur onderskat word nie. Die ontwerp en implimentering kan een tot twee jaar neem. Dit verg verder 'n deurlopende benadering van fokus op interne kliente. 'n Oplossing verg deeglike oorweging en implimentering van alle aspekte wat tydens die navorsing na vore gekom het. Dit sluit strategie en ontwerp in om sodoende deursigtige beheer te verseker.

Thesis (MDF)--Stellenbosch University, 2012. / This study assessed the developments in financial intermediation services provided by Namibia’s commercial banking sector during 1995 to 2008. The study used two measurements of financial deepening in order to ascertain whether the role of the banking sector has become more important in the economy or not. These methods are the credit extension to non-finance private sector and the financial intermediation to GDP ratio. Unlike previous studies, which found that financial intermediation has not deepened before or after independence (Shiimi & Kadhikwa, 1999; Kavari, 2003), this study found some evidence of financial deepening in Namibia as indicated by the increasing credit extension and financial intermediation as shares of GDP. However, the banking sector did not perform well in terms of improving efficiency as banks continued to operate with high interest margins and became more dependent on fee income as opposed to deriving more of their income from intermediation activities. The largest chunk of bank credit was in the form of mortgage funding, allowing individuals, real estate and the business sector to be the major recipients of bank credit during the review period. The study took cognisance of recent measures aimed at enhancing the sector’s relevance and contribution to the economy. These include amendments to the statutes to allow entry of unincorporated bank branches in order to increase competition as well as requiring banks to reduce interest margins, amongst other measures. The study therefore recommends a vigorous implementation of these measures and that the regulator should extend its monitoring oversight to cover actual lending and deposit rates of interest in addition to base rates such as the prime rate and the mortgage base rate that it currently monitors. This is necessary due to weak linkages between the base rates and actual interest rates. The study further recommends a concerted national effort that seeks to ensure availability and affordability of credit on one hand, and to prepare bank clients, particularly the SME sector to be ready to take up finance on business terms on the other hand. This requires incentivising SMEs to become formal businesses and providing them with necessary training and mentoring services in order to improve their risk profiles.