REPORT TO SOCIETY 2021 - Standard Bank Namibia

SBN Holdings Limited

REPORT TO SOCIETY 2021

Contents

Introduction

3 Purpose of this report

4 About Standard Bank Namibia

6 Modernising our corporate architecture to enhance delivery and strengthen customer relationships

9 Integrated approach to creating value

12 Message from Mercia Geises Chief Executive Officer, Standard Bank Namibia

13 SEE impact areas

21 Financial inclusion22 Introduction

23 Our impact in 2021

24 Improving digital offerings and apps

24 Providing access to affordable financial products

25 Digital solutions for entrepreneurs and small businesses

26 Corporate social investment

27 Job creation and enterprise growth

28 Introduction


30 Small, micro- and medium-sized enterprises (SMMEs)

31 Business development support for SMEs


34 Sustainable finance and climate change

35 Introduction


37 Sustainable finance transactions

38 Infrastructure

39 Introduction



41 Education

42 Introduction


44 Investing in employee skills development and training

47 Providing funding solutions for students


49 Health


51 Financial solutions to support healthcare providers and the development of health-related infrastructure


SBN HOLDINGS LIMITEDREPORT TO SOCIETY 2021

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Additional reports and other financial information can be found online at:

www.standardbank.com.na/namibia/personal/about-us/investor-relations

Navigational icons:The following icons are used throughout this report to improve usability and demonstrate the integration of information across our reporting suite:

RTS Read more in this report

AR Read more in our annual report

ESG Read more in our ESG report

The annual report our primary report to stakeholders which provides and assessment of our ability to create value over time. It includes our annual financial statements and information relevant to our shareholders

Report to society our report to society covers our material focus areas in relation to our strategy and an assessment of our social, economic and environmental (SEE) impacts in the areas we believe we have the greatest impact and opportunity

Environmental, social and governance (ESG) report our ESG report provides an overview of the processes and governance structures that relate to social and environmental matters

Assurance statement We have adopted a combined assurance model that includes a series of internal policies, procedures and controls that are in place to ensure that accurate data is provided across our reporting suite and it forms part of the year end audit.

The board is responsible for the report and approved it on 4 March 2022.

Our reporting suiteOur stakeholders are drawn from all levels of Namibian society and are active across various sectors of the Namibian economy. They therefore, have diverse interests and require different information from the group. To engage with all interested parties as effectively as possible, we produce three reports annually:

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IS R

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Purpose of this report Our Report to Society is part of our alignment with the Standard Bank Group's reporting disclosures as per its commitment to the Sustainable Development Goals, the Paris Agreement, the AU's Agenda 2063, and Namcode and the Namibian Financial Services Charter.

We are working to continuously increase our positive social, economic and environmental (SEE) impacts arising from our business activities on society and on Namibia in general and to minimise any negative impacts.


ENVIRONMENTAL, SOCIAL AND

GOVERNANCE REPORT 2021

Feedback We encourage our stakeholders to share their views with us. If there is something you would like to know or feedback that you would like to share, please get in touch with [email protected]


REPORT TO SOCIETY 2021

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ANNUAL REPORTfor the year ended 31 December 2021


3 SBN HOLDINGS LIMITEDREPORT TO SOCIETY 2021

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http://www.standardbank.com.na/namibia/personal/about-us/investor-relations


https://acrobat.adobe.com/za/en/acrobat/pdf-reader.html

*Unstructured supplementary service data

The bank’s original vision was to better understand its customers, employing people with a strong knowledge of local business conditions and to better connect borrowers with lenders. This vision created the foundation for the kind of bank it would become and the qualities which its customers and clients expect.

We are proud to be part of Standard Bank Group, a financial services organisation rooted in Africa with operations in 20 sub-Saharan African countries.

We have grown from a few employees to over 1 400 today, and our roots are deep in the fabric of Namibian society. Being committed to making banking available to all Namibians, we have evolved and adapted with our customers and people, growing a rich heritage while nurturing and protecting our reputation.

We uphold the highest standards of corporate governance and are committed to advancing the principles and practices of sustainable development.

Who we are

Standard Bank’s first branch opened in 1915 in Lüderitz, making us one of Namibia’s oldest companies.

About Standard Bank Namibia

Namibia is our home, we drive her growth.

Transactional volumes on our digital platforms

Internet Banking

3 591 2802020: 3 185 377

PayPulse

962 9632020: 882 752

USSD*

1 136 6062020: 1 033 501

Standard Bank has a strong presence in Namibia and has always lived up to the promise of bringing banking to the nation. We have succeeded through our wide network of branches and ATMs across Namibia.

ATMs

4092020: 372

Branches (including in-store)

622020: 63

Our success and growth over the long term is centred on making a difference in the communities in which we operate.

We are commercially and morally bound to serve Namibia and her people in return for the long-term profitable growth we aim to deliver as a leading financial services group in the country. We are committed to moving Namibia forward and driving her growth.

*Unstructured supplementary service data



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Our company structure

25.1%General Public (including Purros Trust)

74.9%Standard Bank Group

SBN HOLDINGS LIMITED

100%Mobicash Payment

Solutions (Mobipay) (Pty) Ltd (50.9%)

Arleo Investments Sixteen (Pty) Ltd

Stanfin (Namibia) (Pty) Ltd

Standard Insurance Brokers (Namibia)

(Pty) Ltd

Standard Bank Namibia Limited

Our listings and shareholdersHeadquartered in Windhoek, SBN Holdings is listed on the Namibian Stock Exchange and is 74.9% owned by Standard Bank Group and 25.1% owned by the general public, including Purros Trust, our staff empowerment scheme. SBN Holdings Limited also has listed debt on the Johannesburg Stock Exchange.

100%Standard Bank

Namibia Nominees (Pty) Ltd



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In one of the most significant developments of 2021, SBN introduced changes to our corporate architecture to align with that of the Standard Bank Group (SBG). These changes aim to bring a new era of integrated financial services benefits to Namibians and, through alignment with SBG and its operations in 20 countries across the continent, position ourselves for growth opportunities.

The modernisation of our internal structure, completed during the latter part of 2021, has enabled us to engage better and strengthen our relationships with clients. The changes have effectively moved us from operating through our traditional business lines, to a structure built around client segments that are appropriate for meeting the requirements of a rapidly changing financial sector.

Modernising our corporate architecture to enhance delivery and strengthen customer relationships

How we organise ourselvesIn January 2021, we introduced a new operating model. We re-organised ourselves into three Client Segments that are supported by three capabilities, namely Client Solutions, Engineering and Innovation capabilities.

These changes enable SBN Holdings to deliver integrated and seamless financial services to our clients, reducing the time and cost to serve, and to innovate more quickly and effectively. The benefits are already evident in the measures against which we track our progress, and we are confident that this momentum will continue.

High Net Worth clients are predominantly

growing their existing investments and are

preserving inter-generational wealth

Annual turnover*

>N$200 million and specialised

Annual turnover N$20 million –

N$200 million

Annual turnover up to N$20 million

Large companies (multinational regional and domestic),

governments, parastatals and institutional clients

Affluent clients have high disposable income

and are growing assets

Main market clients have a need for simple,

low cost but meaningful solutions

CompaniesIndividuals

High Net

WorthCIB

Business and Commercial

Affluent

Main market Enterprise

Consumer & High Net Worth clients (CHNW)

Business & Commercial clients (BCC)

Corporate & Investment clients (CIB)

CLIENT SOLUTIONS

ENGINEERING

INNOVATION

* Indicative levels that may vary based on complexity of client relationship and country dynamics.



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Our client segments

This area offers corporate and investment banking services to clients, including governments, parastatals, larger corporates, multinationals and financial institutions.

Corporate and investment banking provides high levels of service through:

• Client relationship managers in the Client Coverage Unit who are custodians of the relationships between CIB and the day-to-day contacts with customers. They are backed by client analysts who research the markets and any requirements clients may request.

• Three ‘product houses’ that include: – Investment Banking – Global Markets – Transactional Products and Services.

CORPORATE & INVESTMENT BANKING (CIB)

Investment Banking provides corporate advisory services, large structured medium and long-term loans, revolving credit facilities, mergers and acquisitions and other related services.

Global Markets is the primary trading unit that concentrates on providing risk-management instruments and undertaking trading-related projects on behalf of clients or SBN. Risk-management products include derivatives, forward-hedged contracts designed to mitigate the vagaries of changing interest rates and fluctuating commodity prices, amongst other services.

Transactional Products and Services assist with clients’ daily requirements, from collecting daily payments to helping clients with internet transactions on our dedicated channel. The unit also assists with facilities in the form of off-balance sheet transactions that include letters of credit, performance guarantees and bit-bonds, amongst other products. On-balance sheet transactions in the form of short-term loans and advances, overdrafts, short-term lending products and other requirements are often requested by clients.

• Large companies, governments, parastatals and institutional clients, in Africa and internationally

• Portfolio includes sovereign/public sector (1%), financial institutions (27%), consumer (16%), real estate (20%), power and infrastructure (9%), mining and metals (26%) and oil and gas (1%)

• We have a total of 370 groups, which are represented by 850 individual clients.

Business and commercial clients (BCC) segment provides broad-based client solutions for a wide spectrum of small- and medium-sized businesses and large commercial enterprises. Our client coverage support extends across a wide range of industries and sectors.

BUSINESS & COMMERCIAL CLIENTS (BCC) • Small, medium and large commercial businesses

Consumer services are provided to individual customers through Standard Bank Namibia’s extensive branch network. Services include transactional products, mortgage lending, vehicle and asset finance and lending products.

High Net Worth Clients are offered a range of services. They include creating succession plans for sustaining generational wealth, structuring estates and establishing trusts, and access to offshore investment mechanisms within the group available through group operations on the Isle of Man and the Channel Island of Jersey.

CONSUMER & HIGH NET WORTH CLIENTS (CHNW) • In Namibia, 268 333 active clients; leading market share in mortgages (26,32%) and credit card (19,52%)

as at 31 Dec 2021



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We recently adapted our Client Solutions to include the Wealth segment and client-centricity, which ascertains customers’ needs and the bank’s responses.

Wealth encompasses several businesses and provides the primary source of revenue for Client Solutions.

Each client service segment is supported by the dedicated Client Solutions business, home to our range of e-products and their pricing. The roles of innovation and digital transformation are integral to meeting customer needs, and constitute major components of this area. Innovation is instrumental in leading digital change, ensuring that SBN becomes a digital leader by offering our diverse customer bases various digital platforms.

Client Solutions also responds to the specific needs of the various business segments and develops products on-demand to support their customer bases.

Given the importance of digital services to the future of SBN, the stand-alone Digital Innovation Department reports directly to the CEO.

Delivering on their expectations by underscoring our overall digital objective with data and personalised insights.

Providing the services, solutions, and opportunities that our clients and employees need to achieve growth, prosperity, and fulfilment.

Wealth for corporates includes the Financial Fitness Academy, which assists BCC and CIB by offering their clients’ employees opportunities to attend academy-designed financial wellness workshops.

The businesses are:

Strengthening our cloud processing capabilities and proactively anticipating customers’ needs.

At SBN, as we work steadily to provide customer products and services online, we continuously assess and enhance our capacities. Our efforts include:

Creating wealth through employee benefit schemesWorking with insurance brokers and CIB, employers are assisted with structuring and introducing holistic employee benefit schemes. These wealth solutions offer support to society by offering all, regardless of their occupation or career achievements, opportunities to provide for their future and retirement.

• Standard Insurance Brokers which provides short- and long-term solutions and operates through several joint ventures.

• Stanfin, the wealth and investment services provider, that operates across the country.

• Standard Executors and Trustees, our fiduciary services business, oversees the writing and administration of wills, administration of estates, international client solutions and wealth for corporates.

Client Solutions: delivering digital products and services



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EXECUTING OUR STRATEGYINFORMING OUR THINKING

Our strategyDelivering our 2025 Ambition plan and our transformation to a digital platform business will allow us to achieve our financial targets and enable us to better fulfil our purpose.

Our operating contextAs the Covid-19 pandemic and its socioeconomic effects ease, key trends provide opportunity for growth and development that justify the optimism that underpins our strategy.

Our material mattersOur material matters are those that have the potential to substantially impact on our commercial viability, our social relevance and the quality of our relationships with our stakeholders.

Our strategic prioritiesWe have updated our strategic priorities to clarify what we need to do to deliver our 2025 Ambition.

Integrated approach to creating valueOur strategy aims to achieve sustainable growth for the group and value for all our stakeholders.

Namibia is our home, we drive her growth

STRATEGIC PRIORITIES

OUR MEASURES OF SUCCESS

OUR TARGET OUTCOMES

Drive sustainable growth and value

Execute with excellence

Transform client experience

LegitimacyGrowth and scale Efficiency and resilience

SEE IMPACT

FINANCIAL OUTCOME

RISK AND CONDUCT

EMPLOYEE ENGAGEMENT

OPERATIONAL EXCELLENCE

CLIENT FOCUS

OUR PURPOSE

Our purpose



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SEE IMPACT

FINANCIAL OUTCOME

RISK AND CONDUCT

EMPLOYEE ENGAGEMENT


CLIENT FOCUS

OUR VALUE CREATION OUTCOMES

VALUE FOR OUR CLIENTSWe provide consistently excellent client and partner experiences via an expanded range of innovative solutions.

VALUE FOR OUR PEOPLEWe ensure our people feel deeply connected to our purpose, and are empowered and recognised.

VALUE FOR OUR STAKEHOLDERSWe do the right business, the right way.

VALUE FOR THE GROUPWe use technology and data to better serve and protect our clients, reduce costs and scale our platforms.

VALUE FOR OUR SHAREHOLDERSWe allocate our resources diligently to deliver attractive shareholder returns.

VALUE FOR SOCIETYWe drive Namibia’s growth by delivering shared value.

MEASURING OUR STRATEGIC EXECUTION

ORGANISING OUR BUSINESS

ALLOCATING OUR RESOURCES

OUR ACCOUNTABILITY TO STAKEHOLDERS

We track the progress we make in executing our strategy through our strategic value drivers.

Our delivery modelWe secure the inputs required to transform, grow, innovate and compete effectively.

We use these to deliver our target outcomes through our business activities for the benefit of all our stakeholders.

Our resource allocation frameworkWe use a formal decision-making framework to allocate resources and to better deal with the volatility, uncertainty, complexity and ambiguity of the environment we operate in.

Our approach to good governance promotes strategic decision-making that reconciles the interests of the group and society in our pursuit of sustainable shared value in the short, medium and long term.

Our governance framework supports ethical and effective leadership, corporate citizenship and sustainable organisation and societal outcomes.



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By expanding our focus, we will achieve the following strategic priorities:

BenefitsBy further aligning SBN with the group, with its similar corporate

architecture, additional opportunities arise to grow our customer base locally and also benefit through expanded opportunities across Africa

and abroad.

Most importantly, in a world where competitive lines are continually redrawn, benefits through access to constant innovation are available, helping

us remain leaders of financial services development.

Value is created across the financial services chain using strategic value drivers to measure strategic progress.

These drivers are: • Client focus on ensuring that relevant and complete digital solutions

are delivered to clients

• Employee engagement that shapes the workforce so that we are always ready to meet clients’ needs, now and in the future

• Risk and conduct that delivers value for stakeholders by ensuring that the right business is done the right way

• A culture of operational excellence

• Financial outcomes that strive to generate sustainable returns for shareholders

• The social, economic and environmental programmes and policies that drive positive impacts.

A combination of the first four drivers leads to an improved financial outcome that allows us to contribute to positive SEE impacts.

Achieving our value creation outcomesUltimately, by expanding outwards from our strong foundation in traditional financial services, we are increasingly meeting our customers on digital platforms where they are shopping, socialising or conducting business.

Transforming client experiences by increased understanding of their needs, using employee skills and digital capabilities to help them meet their needs

Executing with excellence by delivering products and services developed within the group and in strategic partnerships

Driving sustainable growth and value in the form of long-term and environmentally and socially sustainable services.

SEE IMPACT

FINANCIAL OUTCOME

RISK AND CONDUCT

EMPLOYEE ENGAGEMENT


CLIENT FOCUS



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Message from Mercia Geises

Chief Executive Officer, Standard Bank Namibia

The process of transforming to the delivery of services through three client segemnts supported by specialist capabilities was first mooted in 2020.

We realised that a new outlook was required when it became apparent that changing customer expectations required that we tailor our operations to become a future-ready institution geared to provide solutions across several digital platforms.

The ongoing Covid pandemic had already led to changes in our operations. About 64% of employees were working from home. Only customer-facing employees and those in some support roles reported to their usual workstations.

Most adapted well to the new way of working and were proving responsive to its changes. This readiness to embrace change facilitated the introduction of our new operating structure in 2021.

Changes took place across the organisation and began with the reallocation of responsibilities at an executive level. Within Exco, this led to appointment of new executives to Exco to drive the delivery of our 2025 Ambition plan and our transformation to a digital platform business.

RTS see pages 9–11 for more detail.

The decision to institute the structural changes was mirrored by a reappraisal of the role we play within Namibia society as a business whose activities impact citizens, the economy and the environment (SEE impacts). We have embedded SEE considerations into our corporate strategy and day-to-day business decision-making processes.

We follow Standard Bank Group's seven core impact areas and we believe we can make an impact in six of them.

RTS Read more about our SEE impacts from pages 13–20 in this report.

These areas are job creation and enterprise growth, which are in turn driven by infrastructure development. Expanding opportunities for financial inclusion and continued support for the health and education of Namibians and our people are vital. Cumulatively, these all influence society by impacting the country’s environment, climate change and the delivery of sustainable finance. By investing in our people, we are able to continue to impact positively on Namibia, our clients and employees.

I welcome your feedback.

Mercia GeisesChief Executive Officer, Standard Bank Namibia

The 2021 business year for Standard Bank Namibia was dominated by change and ongoing challenges. The most prevalent ongoing business concern was operating in an environment where the Covid-19 virus has prevailed. Since it first emerged in Namibia in March 2020, the nature of the virus has changed.

Although rigorous lockdowns have not been imposed for some time, Namibians are still being forced to accommodate their lifestyles and businesses to meet the ongoing threat. Uppermost in our thoughts as we look towards 2022 is the possibility of a fourth wave of infections occurring – this time led by the recently discovered Omnicron variant of the virus.

We have taken the necessary steps to reduce the impact of Covid on our business, our people and our customers. However, we have not allowed this ongoing impediment to determine how we best provide the products and financial solutions our customers expect from Namibia’s leading financial institution. We, therefore, during the year announced the introduction of a new operating model.



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Our SEE impact at a glanceTo address the key challenges facing Namibia, we follow the SEE impact areas identified by SBG. To guide our decisions and activities, we engage with our stakeholders to understand their priorities expectations and challenges, creating and delivering solutions to address them.

When the Covid pandemic hit our shores in 2020 and continued through 2021, we partnered with government, business, and individual Namibians to tackle the issues arising across all parts of our business, communities, and society.

Spending 1% of our corporate procurement

budget with local suppliers.

Assisting more than 64% of our employees to work from home. Those working from home were

equipped with the necessary means to log into the bank systems. Where necessary, they were

helped with data costs. Controlled access meant that our digital integrity was maintained and will

remain secure while employees work from home.

Individual account holders were offered various financial options to ensure that they could cope with

the impact of the pandemic, which included loss of income, reduced working hours and even job losses.

Our PayPulse digital solution was selected as a preferential payment

system by the government to pay about 79 000 Namibians a ‘once-off’

allowance of N$750.

Contributing to transformation and

sustainability of B-BEE by allocating 60% of the

procurement budget to companies operating in

this sector.

Facilitating increased use of online and contactless

transaction channels for individuals and businesses. We also supported

small businesses that moved online.

We continued to offer skills development opportunities

for our employees as we introduced new ways

of working.

Several options and financial mechanisms were offered to corporate and SME

businesses to assist them. Unfortunately, the viability of some projected projects was

affected by the combined influence of the pandemic and the economic downturn.

Some have been cancelled, and others placed on hold until conditions improve.

Contributing N$198.7 million to the fiscus in the form of direct taxes

that are used to benefit all Namibians.

Paying our employees N$838.9 million in salaries

and benefits which support businesses, purchase

consumer goods and create local employment and

prosperity.

Donating N$149 million to projects that

contribute to improving the living standards of

disadvantaged Namibians. We continued to invest in our

flagship programme, the Buy-a-Brick initiative, to

create housing for our fellow citizens.

Our achievements for 2021 included:

SEE impact areas

FINANCIAL INCLUSION

JOB CREATION AND ENTERPRISE

GROWTH

SUSTAINABLE FINANCE AND

CLIMATE CHANGE

INFRASTRUCTURE

AFRICA TRADE AND INVESTMENT

EDUCATION

HEALTH

Our SEE impact areas:



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Impact area Investment Impact achieved

Financial inclusionAligns with our core business and extends our financial services to the broader nation.

Investment as part of our day-to-day operations

Enabled people and enterprises to access financial products and services: • 62 branches and 409 ATMs across Namibia. • 3 591 280 Internet banking transactions • 962 963 PayPulse transactions, • PayPulse app use for once-off government relief payment of N$750 to impacted Namibians • More than 1.1 million USSD transactions

The Namibian government decided to make single social Covid-19 relief payments of N$750 to citizens in need. Standard Bank Namibia’s PayPulse solution was chosen for these payments, which were only made electronically, leading to a 200% increase in PayPulse usage.

SEE impact areas and CSI spend



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Job creation and enterprise growthOur focus on entrepreneurship is based on the over 86% of SME’s in Namibia failing. It is evident that non-financial business support is needed to assist these businesses to manage the many challenges they face.

We partner with organisations and vocational training institutions that provide non-financial business development support through financial literacy programmes, business knowledge toolkits and trade toolkits.

We work with SMEs to understand their challenges, priorities and aspirations, and design solutions to support growth and sustainability. This includes improving access to a financial services, capacity building and business development support, and supporting access value chains and markets.

N$508.1 million B-BEE procurement The procurement department committed to a target of 60% B-BEE spend as required by the Namibian Financial Sector Charter.

N$30 000 SME Revival supportGiven the devastating effect of the Covid-19 pandemic on all sectors of society and most noticeably the business sector, the predominantly owner-managed micro, small and medium enterprises were heavily affected. In 2020, Standard Bank, in partnership with the Namibia Economist, introduced a series of online talks #GrowYourBusiness. These talks, held monthly, cover topics such as how to register a business, conduct effective marketing, hire for success. They also provided guidance, mentoring and management training.

N$7.3 million UNDP schemesStandard Bank hosted a gala dinner and mini expo for SMMEs who provided testimonies on the impact of the programme for them, their communities and families in terms of job creation, income generation and poverty eradication.

During the year, we: • Assisted in creating 131 jobs • Enabled 105 businesses, and impacted the sustainable agriculture, artisan, nutraceuticals, tourism,

hospitality, manufacturing, renewable energy and IT sectors. • Provided N$2.5 million for sustainable agriculture, artisan and nutraceuticals • Provided N$2.5 million for sustainable tourism, hospitality and manufacturing • Provided N$2.3 million for renewable energy and IT.

N$149 million Standard Bank and Agra Limited entered into strategic partnership that sees farmers being able to use the proceeds from auction paid into their PayPulse accounts to purchase goods at Agra, pay their workers and even buy fuel.

N$156 million Agricultural entity exports agricultural produce to the UK, Europe, Hong Kong/China and Malaysia. The entity employs over 350 permanent workers and up to 1 000 workers for harvesting.



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Job creation and enterprise growth- Continued

N$18.5 million SBN

N$23.8 million SBG

MycoHAB is a collaborative effort between MIT, SBG and redhouse studios with a pilot project in Windhoek. The project will grow mushrooms from agri-waste. The mycelium-bound waste from the project is transformed into building blocks that are strong, insulative, fire retardant and a net carbon storage and which can be used in the Buy-a-Brick housing project. Distributed ledger technologies will be used for data transparency, food safety and to empower our partners to act ecologically responsibly.

N$150 000 In partnership with the Africa Group Heads of Mission, we donated building materials to support the agricultural development of an integrated community-based food system to bring food security to the San community in Tsumkwe East and West. The 2021 project was successfully implemented and engages the local community in tackling malnutrition by adopting best practice and stimulates local markets and the economy by producing healthy foods. There are about 5 000 people living in Tsumkwe.

N$2 million Our flagship Buy-a-Brick initiative in collaboration with the Shack Dwellers of Namibia, has contributed to over 600 houses being built since its inception in 2015.

Standard Bank sponsored the Duel in the Desert Golf Day in Walvis Bay. It is envisaged that the proceeds of the day will contribute to the building of two Buy-A Brick house in Walvis Bay, where the community was particularly impacted by Covid-19.

N$200 000 Financial Literacy InitiativeStandard Bank Namibia has supported the National Financial Literacy Initiative for eight years. This year our contribution was N$200 000.

Standard Bank believes that low literacy levels could lead to unsustainable debt burden, poor credit, money loss and higher risks of becoming a victim of fraud. To address these concerns, SBN has been supporting the work of its platform partner, the Financial Literacy Initiative to create awareness of how Namibians should manage their finances in ways that would make them more financially sound.



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Sustainable finance and climate changeAs a new focus area, we engaged the Ministry of Tourism and agreed to focus our support on the protection of wildlife.


Provided clients with sustainable finance solutionsWe offer sustainable finance products and services that assist clients to mitigate the effects of climate change. These products and services include:

• Business savings and investment accounts • Commodities trading, insurance and wealth creation services • Purchase financing services that that take into consideration the cyclical nature of the sector • Vehicle and asset financing for clearing grasslands of encroaching vegetation. This includes an ongoing

partnership with John Deere to assist with financing of equipment • The financing of small-scale farmers.

Partnered with clients to ensure environmental and social risks are appropriately managed.

N$850 000 Supporting the protection of wildlife

After consultation with the Ministry of Environment, Standard Bank donated a purpose-fitted Toyota Land Cruiser to support the ministry’s efforts in its fight against wildlife crime and to protect Namibia’s wildlife.

Standard Bank funded the establishment of a fully operational biomass production plant, including the full value chain from harvesting to packaging and transportation. The project has an off-take arrangement with Germany. The project is expected to create 41 permanent jobs in phase 1, going up to 80 later. This biomass project is a source of renewable energy and addresses the challenges of bush encroachment.



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InfrastructureAs one of Namibia’s primary providers of corporate funding, we were active in all major sections of the economy.


Supported infrastructure development

We worked with clients to make the provision of mining infrastructure, the expansion of commercial farming activities and the development of facilities required in the ports of Walvis Bay and Lüderitz a reality.

• Provided N$84 million to fund new hospital infrastructure • Provided N$150 000 building materials bringing food security in Tsumkwe East and West, assisting the local

San community, as part of our partnership with the Africa Group Heads of Mission • Large mine signed a conditional, credit approved lending facility with SBN to fund the expansion of the

processing plant.Our current projects include a N$1.5 billion deal to provide additional mining infrastructure.



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EducationWe support Namibia’s people to access quality education and opportunities for life-long education and training, enabling them to acquire the knowledge and skills needed to thrive in an increasingly digitised world.

In view of the fundamental changes in the country’s education, particularly the school curriculum, SBN remains committed to support the Namibian government’s goal to improve the quality of education and enable young Namibians to reach their highest potential.

Standard Bank places a huge emphasis on providing support to vulnerable communities including orphans, girls and other young Namibians in need, enabling access to education opportunities that will help them excel in life.

N$112 800 SBN continued to support the Forum for African Women Educationalists in Namibia (FAWENA), committing amount of N$5 798 000 for the period of 2014 to 2022. About 1 070 learners have benefitted from the programme.

In 2021, the project supported 70 secondary school girls in all the 14 regions. Each received N$3 000 for school uniforms, hostel fees, stationery, cosmetics and transport.

Fawena facilitates the education of the girl-child in Namibia and works together with the Ministry of Education to support girls at secondary school, who are from disadvantaged communities and who would not be able to excel academically or professionally because of constrained circumstances.

N$204 000 Academic excellence – Standard Bank has partnered with the Ministry of Education since 2011 to encourage academic excellence in grades 10 and 12. Since inception, 1 008 learners have benefitted from this partnership and in 2021, we donated cash to Grade 12 top performing learners and others. The money was used for registration fees and laptops for their tertiary education journey.

N$220 000 Stationery drive – In partnership with local charity organisation, Let's Unite, SBN donated stationery to eight schools (primary and secondary) in Outjo, Otjiwarongo, Okakarara, Otavi, Grootfontein and Tsumkwe 2 300 learners benefitted from this initiative. Grade 1s were given welcome stationery packs.

N$300 000 SBN donated funding towards the education of Namibia’s track stars, Christine Mboma and Beatrice Masilingi in recognition and celebration of their achievements at the Tokyo Olympics which saw them being ranked number two and six in the world, respectively.

N$238 million – overdraft facility

SBN’s Namibia Students Financial Assistance Fund (NSFAF) was established in 1997. It assists Namibian students in furthering their studies and careers at approved higher educational institutions (vocational training, under- and postgraduate). The financial assistance is provided through loans, grants and scholarships. Since 2010, it has funded over 120 000 students and awarded 368 scholarships and special initiatives.

Standard Bank held its first national hockey development festival in November. Junior hockey players from 24 primary schools from five towns took part in the inaugural Standard Bank Junior Hockey National Festival in Windhoek.

In support of the Ministry of Education and in an endeavour to nurture the talent and potential of Namibian youth, Standard Bank launched the Brighter Day campaign in partnership with volunteer counsellors in Rehoboth and Mariental, reaching over 300 learners and teachers from schools around the towns. The initiative tackles emotional challenges, promotes mental wellness among learners and teachers, helping them to cope with post Covid-19 challenges and life back in school. It is rolled out in schools across the 14 regions.



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Health In partnership with private sector and NGOs, we support better health outcomes for Namibia’s people by investing in our employees’ health, financing healthcare providers and the development of health-related infrastructure, and investing in health-focused CSI programmes to improve access to quality essential healthcare services

N$396 000 (aggregate)

The Hope Village has been a beneficiary of SBN's CSI programme since 2006. Our investment of N$50 000 in 2020 was used to support the Standard Bank House at the Village. The Standard Bank house at the Village accommodates girl children who are completing Grade 12 secondary schooling at various schools in Windhoek.

The village consists of a clinic, four vegetable gardens and a library. Children are referred to Hope Village by child protection services, hospitals or social workers. In 2021, we renovated the house and provided upgraded furniture in addition to the annual financial support.

N$500 000 Standard Bank donated 2 500 litre water tanks for use in the informal settlements of Gobabis, Tsumeb and Grootfontein in the fight against Covid-19. We also distributed sanitisers for the use in informal settlements.

In partnership with the Motor Vehicle Accident (MVA) Fund, SBN launched Project 9682, the upgrade and renovation of the Katutura State Hospital’s emergency unit.

N$220 000 Continued our support of children who suffered birth deformities such as cleft lip and palate deformities. We allocated N$220 000 towards this cause in 2021, equalling the donation made in 2020.

N$449 380 As part of our support for mental and physical health, SBN once again held the Standard Bank OTB Winter Trail series after the 2020 series was suspended due to the Covid-19 pandemic.

N$63 000 Standard Bank donated three 5-litre oxygen concentrators to the Healing Haven hospice in Otjiwarongo. This donation will assist post Covid-19 patients with lingering symptoms.

N$463 000 Donation of oxygen – the state hospitals and Covid-19 community health centres experienced a shortage of oxygen and we donated oxygen tanks to three communities that were identified as epic areas: Katutura State Hospital, Rehoboth Community Health Centre and Otjiwarongo Health Centre. The value of the oxygen tanks.

Financed healthcare providers and the development of health-related infrastructure • Enabled expansion of world-class health facilities in Namibia.

N$30 000 Standard Bank donated food parcels, blankets, washing buckets and immune boosters to victims of a fire that destroyed shacks in Swakopmund.



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FINANCIAL INCLUSION



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Financial inclusion

Financial inclusion, which enables more people to enter the formal economy and access financial products and solutions, is essential in reducing inequality, enhancing human development, and supporting the economy.

As a financial institution that plays a multifaceted role in society, we encourage unbanked people to participate in the economy. It is only through being part of the formal financial world where affordable financial products can be accessed that people can begin reaping the benefits that can transform their futures. Savings accounts, loans, investment services and other products all work together to help transform futures and create legacies.

We are dedicated to being transparent when delivering products and services – a fundamental requirement for developing and maintaining trust between our customers and Standard Bank Namibia.

WE ENSURE

THAT TRUST IS MAINTAINED

BY:Supplementing written information with verbal input from employees who are product specialists

Where requested, sending brochures by mail to customers

Offering all customers brochures that outline the benefits and fee structures attached to our products and services.

Providing ongoing, current information about the fees and costs attached to our services

The impact of Covid-19 Customarily, many Namibians have been wary of adopting digital banking, preferring to conduct cash-based personal and business transactions. As the virus tightened its grip in 2020 and freedom of movement was curtailed, people wishing to conclude transactions began turning towards digital products.

The significant development driving the move to digital solutions in 2021 was the decision by the government to make single social relief payments of N$750 to citizens. These payments were only made electronically, which led to a surge in card requests.

As more services have been added and it has become possible to conduct more banking tasks, including paying municipal bills, acceptance of the switch from cash to digital platforms has continued to accelerate.



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Our impact in 2021

Across Namibia, the adoption of digital services has seen a steady decline in physical transactions at branches across the country and increased adoption of digital solutions in rural areas as people have realised that cards offer an alternative to travelling long distances to pay municipal and other bills.

We are committed to:

Promoting inclusivity by supporting, educating and protecting consumersAs a financial institution whose business is built on treating customers fairly, we are dedicated to being transparent when delivering products and services – an approach that is essential if we are to develop and maintain trust between our customers and the group. We, therefore, are committed to:

• Providing ongoing, up to date information about the fees and costs attached to our services

• Providing all customers brochures that set out the benefits and fee structures attached to our products and services.

• Supplementing written information with verbal input from employees who are product specialists.

• Where requested, sending brochures by mail to customers.

Providing digital wallets and banking apps to provide mobile-based services

Partnering with fintech companies such as MobiCash, the mobile service provider of MobiPay, to deliver easy to use solutions for users.

We adopt the group’s six guiding principles when deciding how to deliver digital products and services to our customers.

These principles are:

Protecting customer informationTo ensure that customer information remains confidential, we:

• Enforce a strict internal compliance policy that sets out criteria for safeguarding confidential client information.

• Require that employees sign a confidentiality agreement that is updated annually.

• Publicise our Customer Care Centre number and email address to encourage our clients to lodge their complaints.

• Have client registers in branches so clients can record their complaints.

• Hold a monthly Customer Service Forum where matters and complaints lodged by major customers are reviewed. During this process, representatives from client segment and Credit teams also consider client feedback and suggestions. They then take action to resolve concerns.

• Meet with Private, Prestige and Achiever clients every three months. This initiative is invaluable in obtaining feedback on our offers and enhancing products and services. Strengthened stakeholder relationships are a valuable outcome of these sessions, which provide feedback that is also useful to the Customer Service Forum.

That services must be continuously available, anywhere, anytime

1

That data is used to guide our decisions, create valuable insights and deliver personalised experiences

2

That we build enterprise assets that can be leveraged across the group

3

That it must be easy for our customers to interact with us through intuitive, easy to use, reliable interfaces

4

That we work proactively to understand client needs and continually learn and improve

5

That we create an environment that encourages curiosity, digital thinking and continuous improvement

6

Offering digital products and services that are accessible to all and do not necessarily require a bank account.



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Almost 280 000 active PayPulse

e-wallets

14% growth in number of digitally active customers 138 companies using

PayPulse Business

40% increase in digital lending in Namibia

We promote access to banking services through our range of financial offerings that are tailored to meeting customer needs.These offerings include:

• The Blue Cheque Account for customers whose incomes do not exceed N$3 000 a month.

• The Classic Cheque account for those whose incomes exceed N$3 000 a month, but do not exceed N$6 999. A lending module is part of this account.

• An electronic scoring system that assesses a customer’s overall financial position and helps decide eligibility for loans. All loans and overdrafts are subject to this automated ‘audit’ which has maintained the group’s credit loss ratio at less than 5%.

Improving digital offerings and appsWhen creating digital services for a broad user base, any offerings such as applications for mobile media must be easy to use and intuitive – structured so that users find it easy to navigate and achieve desired results.

In our efforts to ensure that digital products retain their interactive customer appeal and remain relevant to the growing user market, we often review usage data and investigate, where applicable, the causes of slow acceptance or low utilisation of channels.

Providing access to affordable financial products



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PayPulse features include:

During the year, to keep services accessible, and encourage the use of digital channels, free and discounted value-added services were offered.

They included:

Free payment of prepaid electricity, airtime and TV subscriptions across all digital offerings

Free ATM cash deposits for retail customers

Free ATM balance enquiries

A 25% discount on electronic payments made through Enterprise Online, Internet banking, mobile banking and the Standard Bank app.

Being able to link three debit or credit cards from any bank to the service

The ability to access the full transactional capability of each card

Paying for goods, sending money to other PayPulse wallets, paying municipal and other bills, airtime, parking and top up electricity

Sending BlueVouchers (instant money) to a recipient via their mobile phone number, to be redeemed at any Standard Bank ATM within 30 days.

Depositing and withdrawing money or transacting at a wide range of PayPulse merchants.

Digital solutions for entrepreneurs and small businesses

By the end of 2021, we had

279 662 active PayPulse. This is as a result of the significant emergency income grant transactions processed in 2021. If these grants are excluded there would have been an 8% year-on-year increase.

The value of transactions on PayPulse

was N$422 million in 2021.

White Metrics GraphicPayPulse A leading digital product offered by Standard Bank Namibia, PayPulse, is used to conduct thousands of daily mobile-based transactions, enabling clients to use their phones to pay anyone at any time. The wallet solution available to clients since 2015, has moved with the digital times, with enhancements continually being added.

Government agencies, companies and SMMEs use PayPulse to make bulk and individual payments to Namibian cell phone numbers. These features enable the payment of wages, social grants and even airtime for employees.

BlueVouchers can also be sent to beneficiaries who can then redeem these funds at an ATM. Recipients do not require bank accounts to receive funds, only a valid Namibian mobile number. By the end of 2021, 138 companies were using PayPulse Business to pay wages, with a total value of N$38.2 million, into mobile wallets.

New enhancements to the PayPulse app can be used to settle group bills and benefit those who need money through the ‘Callme Request’. PayPulse’s QR and Pay-by-link features are suitable for small businesses as it allows payments to be made quickly and easily by either creating a code or sending a link for a request for the customer to pay.



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Corporate social investment

Other Buy-a-Brick eventsPast events to involve as many people as possible in the process of helping their fellow citizens have included:

• Mobilising schools to raise funds by selling colourful Footprint Socks – some with the Buy-a-Brick logo. The project’s name was chosen to encourage learners and Namibians to leave a footprint in the lives of families living in shacks by helping them acquire affordable houses

• Driving community involvement – a partnership was created with a local manufacturer to produce socks for distribution to retailers for selling

• Selling specially designed clothing and shopping bags produced by young entrepreneurs

• Working with the Shack Dwellers Federation of Namibia to supply members with sanitisers and vitamins to boost their immune systems and help counter the Covid-19 health risks caused by living together in cramped communities

• Providing food parcels and placing water tanks for communal use at convenient points in settlements.

Buy-a-brick: a major initiative for a pressing societal problemOne of Namibia’s most significant social problems is the number of people living in shacks and informal settlements.

One of our primary, longstanding flagship projects is the Buy-a-Brick programme that works through the Shack Dwellers Federation of Namibia to reduce the country’s housing deficit. Standard Bank Namibia assists by raising funds from corporations, communities and individuals to build houses for those in need. Various programmes and events and sponsorships are arranged to achieve this.

Helping to build an inclusive society goes beyond providing financial services and products at an affordable cost to customers across the country – it involves demonstrating corporate citizenship by becoming involved meaningfully in helping build lives.

We contribute to the development of Namibians who face socioeconomic challenges that impact the quality of their lives through no fault of their own. Ensuring that our initiatives and programmes are coordinated and have the desired outcomes, we concentrate on social issues of significant concern. We then adopt policies and investment strategies that identify projects deserving support. Where necessary, we use independent experts to assist in achieving desired results.

Unfortunately, the pandemic and restrictions involving events compromised plans for many events that would otherwise have occurred during the year. We continued, however, to support causes that have been part of our portfolio for many years and adopted new projects based on their relevance and possible need to help resolve societal issues that arose suddenly.

Measuring our contribution

We commit 1% of our net profit after tax to CSI programmes, or N$4 874 360, in 2021, a voluntary allocation four times greater than that required by the Namibian Financial Services Charter (NFSC).

Funds are divided amongst projects that address educational, health and community wellness issues.

White Metrics Graphic

The Duel of the Desert Golf DayAt the Walvis Bay Golf Club, 32 teams met to help raise funds for the housing programme’s funds. The teams, were composed of local personalities, bank employees and former South African sports stars. It is envisaged that the proceeds from the day will see at least two houses being built.

The feelings of all were ably summarised by Paul Harris, SA Protea’s spin bowler, who thanked Standard Bank for the opportunity to participate in the event. He said: ‘Thank you, Standard Bank, for sponsoring the Duel of the Desert. Buy-a-Brick is an amazing initiative. We need to help wherever we can to get people out of shacks and into houses. It is nice to play a small part in achieving that objective’.

During 2021, these included:



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JOB CREATION AND ENTERPRISE

GROWTH



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Job creation and enterprise growth

Job creation and enterprise growth in Namibia are intertwined with transformation. Efforts are undertaken to ensure that the financial services sector promotes job creation and generates opportunities for Namibians within their organisations and society at large.

These principles are enshrined in the NFSC, which was introduced in 2008, and is actively supported by Standard Bank Namibia, which uses the guidelines to promote transformation and growth at all levels.

Leading from the frontAs a leading and active member of Namibia’s financial services sector, SBN has always been conscious of the need to exercise and display ethical leadership. Therefore, we have worked diligently to supply Namibians services and products and become an organisation that actively creates and builds Namibians’ opportunities within our business. Our other guiding principle has been that our recruitment mirrors the makeup of our diversified society.

In meeting our objectives to create a representative workforce, we have also made substantial investments, described elsewhere in this report, to ensure that we provide our employees with occupational training and development opportunities. This investment supports our opinion that to be achieved, transformation should be meaningful and spread across all levels of an organisation. Our transformation actions have been focused on real achievements without compromising the SBN’s delivery of quality, value-added services to our customers.

Real transformationThe NFSC, which the Ministry of Finance introduced in November 2008, gave statutory endorsement to the sector’s transformation. It sought through its provisions to act as a mechanism to encourage voluntary adoption of principles that assisted with the transformation of banks and empowerment of Namibians in the financial services industry and, thereby, also bring tangible benefits to citizens.



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Our impact in 2021The strategy and vision for 2021 is realised through leveraging client value. Ecosystems remain our core acquisition and retention strategy, underpinned by ongoing schemes listed below. We work with our corporate clients to understand their challenges and priorities. Together we identify appropriate financial and digital solutions that will underpin their growth and expansion.

We also offer targeted support to small and medium-sized businesses (SMEs) to help them develop and grow their enterprises.

Measures adopted included:

Agriculture is the backbone of the economyAgriculture is a primary contributor to Namibian GDP and an employer that supports about 70% of the population.

Our participation in this sector is through products and services available across the entire agricultural value chain. These products and services include:

• Business, savings and investment accounts

• Commodities trading, insurance and wealth creation services.

• Purchase financing services that take into consideration the cyclical nature of the sector

• Vehicle and asset financing for clearing grasslands of encroaching vegetation. This includes an ongoing partnership with John Deere to assist with funding tractors.

• The financing of small-scale farmers.

• Working partnership with the Development Bank of Namibia and NASRIA to deliver the Credit Guarantee Scheme, although uptake is still slow

• Working with the United Nations Development program and the Environmental Investment Fund of Namibia on a partnership Grant and Match Financing Scheme, where we helped create over 87 jobs

• Partnering the Bank of Namibia and Bankers Association in the zero-rated loan scheme – working on revisions to improve attractiveness of proposition

• Offering SMMEs assistance similar to that extended to our major clients and, in addition, providing loan assistance where contracts had been awarded, but companies lacked the necessary resources to fulfil these obligations

• The #GrowYourBusiness online series owners in association with the Namibian Economist aimed at small businesses. The series, which covers all elements of managing and building a business, offers entrepreneurs the opportunity to learn from some of Namibia’s leading business entrepreneurs

• Promoting Namibian business by procuring services and products from local suppliers

• Extending the facilities on the PayPulse card to enable farmers to access more payment options. Farmworkers can now receive salaries through PayPulse and pay everyday expenses by card. Time-consuming travel to ATMs and branches to access cash is no longer required.

• An electronic scoring system monitors customers' account, ensuring that they do not become highly indebted

• Working with CIB to help them manage their risk. Specific relief measures included payment holidays, term extensions and covenant waivers



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Small, micro- and medium-sized enterprises (SMMEs)SMMEs are essential parts of any economy. In Namibia, where small businesses contribute about 12% to the nation’s GDP, these businesses are respected for their increased contributions to the economy and the creation of employment opportunities.

This sector’s primary advantage is that businesses are usually established within their communities and serve local customers. As they also draw employees from the areas in which they operate, they help alleviate poverty and create circles of prosperity.

Acknowledging the importance of SMEs and their potential for playing a decisive role in economic growth, SBN Holdings has developed several initiatives to assist entrepreneurs in overcoming the obstacles they face.

These include:

A holistic approach to building small businessesCreating sustainable SMMEs is more than simply offering access to funding and support through bespoke banking products and services. As part of our commitment across the entire sector, we assist at the start-up level and help entrepreneurs already in business that need input to make their enterprises sustainable. This assistance takes the form of educational programmes to promote financial literacy, deepen understanding of business practices and improve business skills.

Partners in this vital arena include business associations that sponsor suitable events and host business workshops.

By December 2021,

our SMME loan bookhad grown to N$383 million.

Catering for the business needs of Tier-I businesses (those with an annual turnover of N$3 million to N$10 million) and Tier-II customers (with annual turnovers of between N$1 million and N$3 million)

Creating opportunities for small businesses to participate as suppliers to Standard Bank Namibia where, in 2021, the procurement budget was N$398.1 million for operating expenses and N$366.9 million for capital expenditure

Of this, procurement expenditure with SMMEs was N$508.1 million, or about 60% of total procurement spend.

Exceeding the requirements of the NFSC that at least 30% of B-BEE spending is allocated to the SMME sector. We allocate 60% of B-BEE spending to the SMME sector

Developing lending products tailored specifically for the sector

Creating cash flow, the lifeblood of small businesses, by ensuring that finance is available through accessible lending products that meet our SMME customers’ needs

Promoting skills transfer by establishing joint ventures or subcontracting with B-BEE companies

Where requested, implementing a short payment cycle to assist vendors with cash flow.

We helped enterprises to develop and grow by:



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The Financial Literacy InitiativeThis flagship national initiative is offered through the Ministry of Finance and is intended to create financially aware citizens and small business owners who are equipped to make informed financial decisions and can select appropriate financial products and services.

The Financial Fitness Academy

Offered through BCC and CIB, the Financial Fitness Academy provides clients of these two entities with opportunities to educate their employees about personal finance and working towards financial fitness. This free service offers workshops and masterclasses covering five fundamental personal finance areas and are presented on client premises. They are:

This module introduces the concepts of money management. It informs listeners about how to begin saving with their first paycheque, opening bank accounts, and laying the foundations of money management.

Create and Build:

The basics of savings. This includes understanding the difference between savings and investing and strategies for achieving both.

Save and Invest:

This helps differentiate between good and bad debt and teaches how to structure debt and plan for the future.

Live and Enjoy:

This is built around achieving the first three steps. It includes the importance of wills, planning an estate and leaving a legacy for the family.

Share and legacy:

This deals with selecting the correct type of insurance coverage and avoiding being overinsured or underinsured.

Insure and Protect:

Standard Bank Namibia has supported the National Financial Literacy Initiative for eight years. This year our contribution was

N$200 000.White Metrics Graphic

Business development support for SMEs



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Our educational and developmental programmes are complemented by other activities and partnerships that SBN has with local and international bodies. As these have a broader focus and involve CSI spending, these programmes have been discussed in the SEE Education and Health impacts.

Read more from page 42.

The University of Namibia’s Entrepreneurship Programme We are long-term supporters of the University of Namibia’s entrepreneurship programme and establishing an entrepreneurship hub and incubator programme. Selected participants are provided with scholarship funding by the group.

Formal business sector initiativesIn the formal business sector, we leverage our Chambers of Commerce memberships across the country to keep us at the cutting edge of local business matters, build relationships and offer product and service information to other members.

At a national level, we are active members of the Namibia Chamber of Commerce and Industry (NCCI), which has about 2 500 members drawn from all Namibian business spheres.

We attend regional and local NCCI meetings and, where we can, contribute to discussions and formulate answers to national and regional business concerns and issues. We then participate in building strategies surrounding business issues that include access to information and finance, lack of infrastructure, access to markets, technology, and development of business opportunities.

Peer educationActive participation in programmes launched by vocational and other educational institutions are vital to creating long-term relationships with our customers. By participating in these programmes and workshops and hosting discussion forums, we position ourselves as providers of choice to businesses in the SMME segment.

At these various gatherings, our customers can interact with business experts and have opportunities to learn more about our products and how they can be used to develop their businesses.



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MycoHAB NamibiaThe MycoHAB initiative is a partnership between Standard Bank, the Massachusetts Institute of Technology (MIT) Center for Bits and Atoms, and architectural firm redhouse studio from Cleveland, Ohio. It aims to grow a sustainable economic and social ecosystem to tackle homelessness in Namibia. Together, we are leveraging mushroom mycelium technology from NASA’s Mars NIAC programme to build affordable houses. MycoHAB also aims to create food security and agricultural jobs. And it creates additional environmental benefits, by using the indigenous encroacher bush, a major ecological and environmental problem in Namibia, as food for the mushroom mycelium. Mycelium requires very little water, no additional

nutrients and thrives on the substrate of the encroacher bush. Ultimately, people living in MycoHAB houses will not only be able to harvest mushrooms for themselves but also sell them and fabricate a versatile mycelium-based construction material, without polluting the environment over 40 kilograms of mushrooms are currently being harvested every week by MycoHAB’s cultivators. The mushrooms are sold through selected channels at prices rivalling those of fresh-quality beef, with plans to scale up to 200 kilograms per week. The first habitable mycelium structure is expected to be completed in 2022. It will become a MycoHAB Bio FabLab linked to MIT and open to Namibians, as an incubator to support the growth of new, local micro-businesses to grow.

MycoHAB Mycobricks could help solve an increasing natural challenge

Namibia is faced with the challenge that the open, semi-arid savannah land, characterised by a patchy mix of trees, bush thickets and extensive grassland, is gradually transforming into a dense, bush covered landscape.

The bush encroachment has affected about 45 million hectares of land, leading to reduced carrying capacity of range land, loss of biodiversity and, in the medium term, to a reduction in available groundwater, due in part to increased water uptake by the bushes. The ‘Bush Control and Biomass Utilisation’ project aims to counteract bush encroachment and ensure the restoration of rangeland with a special focus on the use of bush-based biomass resources in different value chains.

BIOHAB │ SB NAMIBIA BOARD │ NOVEMBER 2021 / PAGE 9

BIOHAB OVERVIEW – LEVERAGING MUSHROOM MYCELIUM TO PRODUCE NUTRITIOUS FOOD AND INNOVATIVE BUILDING MATERIALS

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Mushroom mycelium

Substrate (encroacher bush) Nutritious Food

Innovative building materialsMushroom mycelium

Substrate (encroacher bush)

Nutritious Food

Innovative building materials



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SUSTAINABLE FINANCE AND

CLIMATE CHANGE



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Sustainable finance and climate change

Through its ability to develop effective strategies, services and solutions for all sectors of the economy, we can support Namibians and extend a helping hand when the unexpected happens – as we demonstrated through our actions across all sectors of the economy during the ongoing Covid pandemic.

Sustainable profits support shareholders and stakeholders, provide tax revenue, and provide the impetus for further growth and development through an established CSI programme, SMME assistance and finance programme and other interventions.

As a leading Namibian financial institution, we ensure that we operate in a financially sustainable manner. Without its ability to withstand economic vagaries that may occur, whatever their causes, and operate sustainably, the bank could place the futures of employees, customers, local businesses, parastatals and government bodies at risk.



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Monitor and mitigate our environmental impact

Develop innovative financial products and services that support the green economy, reduce carbon emissions, increase climate resilience, and enhance and socioeconomic developmentWE WORK TO:

Assist our customers in developing appropriate solutions for mitigating and adapting to the effects of climate change

Identify partners that can assist with our drive to make contributions to the environment

Be involved with regulators by contributing our knowledge to help with framing of environmental legislation and policies

Encourage associates, suppliers, property owners, tenants and clients to adopt comprehensive environmental and social practices.

In-house programmesWe, at SBN, monitor and preserve energy and water through environmental policies across all facets of our business. Our activities include using a central data management system to monitor and identify opportunities to reduce our environmental impact. This action is reinforced by strong environmental management practices across all our operations.

Our head office in Windhoek is a tangible example of SBN’s commitment to the environment. The five-star rated green sustainable A-Grade building, located in the Kleine Kuppe business hub, incorporates water and saving measures that are constantly monitored and reported.

We are in the process of gathering baseline data to be used for future sustainability reporting and implementing sustainable environmental solutions in our working environment to align with SBG.

Guarding Namibia’s ecosystemsExternally, all requests for finance for existing and new industrial developments are examined to ascertain whether they have the potential to damage Namibia’s finely balanced ecosystems. Where possible negative consequences are identified, we negotiate with the management of projects to ensure that risks are mitigated where this is required. We supplement this action by seeking out and financing green projects and renewable energy undertakings that reduce the potential for ecological damage and align with group policies.

Our impact in 2021In a country of harsh landscapes and finite reserves, the need for sustainable development and the preservation of existing resources is paramount. This task includes individuals and the active participation of business in general and the financial services sector in particular.



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Working with clients to encourage sustainable practices

Providing financial products and services that support positive social and environmental outcomes, including green and social bonds, ESG-linked loans, sustainable trade solutions and impact investing

Providing environmental and social lending and advisory experience in respect of project finance, export credit and corporate finance product offerings

Working with our clients to develop appropriate solutions to mitigate and adapt to the effects of climate change

Progressively managing and shaping our portfolio in a manner that is consistent with achieving a low-carbon and climate-resilient economy needed to limit global warming to below 2 degrees, by supporting a just transition away from non-renewable energy sources in our countries of operation. More information in this regard is available in our ESG report

Working with our retail banking clients to adopt greener solutions for their homes and businesses.

Sustainable finance transactions We offer stainability linked loans, social bonds, and sustainability linked bonds to clients. In each case, lending terms are linked to clients’ achievement of specific, measurable ESG targets, relevant to clients’ business strategies. Examples include increased use of renewable energy, reduction of carbon emissions, improved water use efficiency, employee safety, financial inclusion and gender equality, among others.

Standard Bank’s role UN SDGs addressed

SBN is the lender for a leading fishing company committed to creating sustainable value and positively impacting the lives of all stakeholders.

SBN is the lender for a biomass project that addresses agriculture concern regarding the encrochment of invader bush, creating a product for heating and cooking. The project created 41 jobs with further employment expected as new production facilities are added for increased exports.

SUSTAINABILITY LINKED LOANS (SSL) IN 2021



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INFRASTRUCTURE



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Sustainable infrastructure development is a catalyst for economic growth and the development of communities. It is essential to a country’s ability to compete in global markets and attract foreign direct investment.

Infrastructure

Standard Bank Namibia plays a major role in the development and expansion of the economy through the provision of defined packages designed to enhance the outputs of businesses across all sectors of Namibian endeavour. Some of the most significant deals of 2021 were within the mining, agricultural and fishing industries where deals were signed for the provision of additional working capital, creation of new infrastructure and expansion of other facilities to improve production and outputs.

Our involvement in two major commodity producers will see facilities expanded and the creation of additional jobs. These projects are significant also for their potential to increase the number of jobs in remote areas where opportunities for employment are limited. In some cases, the mining operation is the only employer within a rural village.

Unfortunately, the ongoing Covid-19 pandemic impacted some of the businesses that were intending to expand facilities in 2021. These included an iron ore mine, a long-time client, which was forced to review expansion plans when the international ore price dipped unexpectedly. This project has now been placed in abeyance until conditions improve.

The energy sector, driven by the government’s desire to reduce the country’s reliance on producers of electricity from neighbouring countries, has been a major source of business for several years as NamPower, the national producer and private developers of renewable energy continue to develop projects. Increasing numbers of players are entering the field and providing capacity through PVS (solar energy), wind and other renewable resources.

Activity is being stimulated by the government’s adoption of a modified single-buyer model that opens the market to independent producers wishing to install generation infrastructure, produce and sell electricity to customers that include the private sector, NamPower and municipalities.

Other sectors, operating from within the agriculture and industrial arenas, sought assistance with finances to enable and expand their export capabilities to Asia and Europe. Although conditions are still challenging the final half of 2021 showed a definite increase in activity – something that is hoped will carry over into 2022 and beyond.

How we supported infrastructure development in 2021



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• In Tsumkwe, through our ongoing partnership with the Africa Group Heads of Mission from various countries and at the United Nations, we donated more than N$150 000 in building materials.

• For Africa Day in 2021, instead of supporting events that were impacted by the pandemic, we used the funds available to help a community-based project in Tsumkwe. In 2020, this sponsorship budget was used to establish a community centre in Rundu.

• These materials will be used to support the agricultural development of an integrated community-based food system to bring food security in Namibia in Tsumkwe East and West and assist the local San community.

Through CIB, SBN contributed to the growth of the local economy in 2021 by assisting with financing projects in the mining, agricultural, and business sectors that will either upgrade operations or result in the installation of infrastructure that will increase the production of commodities and products for local and international markets.

During the year, deals worth N$1.52 billion were signed, but due to the Covid pandemic, which disrupted many projects, the full effect of these projects will only be seen in 2022.

Generally, CIB distinguishes itself from the lending activities of the BCC division by operating in a sector in which client revenues are about N$200 million annually. Other enterprises supported by CIB operate in specialised industries or sectors ranging from mining to pension fund management. Government and sovereign deals are allocated to CIB according to specific criteria. Some areas, education, for example, fall within BCC’s ambit.

Our impact in 2021



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EDUCATION



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We support Namibia’s people to access quality education and opportunities for life-long education and training, enabling them to acquire the knowledge and skills needed to thrive in an increasingly digitised world.

Investing in employee skills development to ensure that our people have access to the training they need to thrive in a rapidly evolving workplace

Corporate social investment focusing on early childhood development, school education, and skills development for youth and entrepreneurs, with a current focus on addressing the gaps created by the ongoing Covid-19 pandemic and disruption to schooling and tertiary education.

OUR FOCUS AREAS INCLUDE:

Education

Providing innovative funding solutions for students, from affordable student loans to bursaries



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Employee study assistance A special subcommittee is tasked with assessing requests from employees seeking financial support to study through external tertiary education and training institutions.

Assistance offered is subject to the value that the programme of study offers to the group. Also considered are the future skills required and employees’ work records.

We worked with partners in the public and non-government sectors to help deliver a range of comprehensive education projects designed to assist Namibians with the knowledge they need to build better lives.

Training and learningTraining, which has always been a group priority, has ensured that employees across the bank have always had opportunities to educate themselves and develop their careers. During the last two years, the Covid-19 pandemic has challenged the traditional face-to-face delivery of programmes. As most people were required to work from home, and as changing business conditions allowed, online training was introduced to reach people and continue delivering education.

By 2021, the ‘Degreed’ training platform, introduced the previous year, was well established. The platform, which supplements existing training programmes, encourages

employees to consider their career ambitions and identify what they need to achieve to develop and close the gaps in their knowledge. They are then asked to build their development programmes, discuss their ambitions with line managers at appraisal sessions and apply for the appropriate training modules. Resources include books, relevant media articles and online training modules.

Employees responded positively to this approach and many, wishing to upskill themselves and improve their career prospects in a competitive environment, took advantage of opportunities.

Our impact in 2021

N$6.8 million was invested in learning and development programmes.

This investment was 0.85% of payroll.

White Metrics Graphic



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Career development Our ability to offer careers in financial services and potential advancement has long been a factor in attracting people to our business.

Having employees who are confident in their abilities and secure in the understanding that their efforts could be rewarded with advancement means having a stable workforce ready to accept challenges.

Our management processes build on our approach to career development and ensure that we maintain a high-performance culture.

Employee financial literacy programmeThe financial literacy programme assists employees experiencing financial difficulties or those unable to meet their commitments.

As part of the assistance process, employees are provided with coaching material and templates to develop household budgets.

Since the programme’s introduction, there have been many requests for copies of the templates. These are provided on request through internal media.

Talented people are selected by:

The Branch Manager Programme This programme is an SBG initiative. This comprehensive leadership development programme is for retail branch managers. It consists of workshops and structured post-learning implementation modules.

Development schemes for employees

The Coaching Programme This programme offers employees opportunities to become coaches within the group and help their peers acquire career-specific knowledge.

The ‘Under the Hood’ Programme Helps people identify and understand an employee culture and how it can be positively applied to achieve performance goals.

The Standard Bank Namibia Influencer Programme Our homegrown programme combines compelling videos and extensive class exercises to develop skills that assist delegates to:

• Referencing their past performance

• Assessing their leadership potential

• Offering rewarding careers

• Offering future development opportunities

• Their agreement to follow defined performance contracts that are reviewed annually and are essential tools critical in setting rewards and deciding future job opportunities.

• Identify crucial moments and high leverage behaviours that could lead to rapid personal growth

• Apply strategies for changing prevailing thinking and actions

• Use the model as a diagnostic tool to assess business and project challenges, and determine their success

• Implement ‘six sources of influence’ to make the change inevitable and sustainable.

Investing in employee skills development and training



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Meeting the needs of a constantly evolving sectorIn a continuously changing financial services sector, our success depends on our ability to evaluate events and trends, such as digitisation and the changing demands of customers for service. We also ensure that talented, energetic and innovative people are attracted to and stay with SBN.

Several initiatives have been introduced to underpin the process of identifying, recruiting and retaining the people who have the talent required to keep the group competitive and take it forward.

A talent mapping process identifies talented individuals and evaluates their performance and ability to grow in crucial spheres of our operations. Selected employees are then exposed to various facets of our operations. They attend board and executive management meetings, strategy formulation sessions and talent engagement gatherings. They are then allocated assignments designed to test and stretch their capabilities. In some cases, selected candidates can be offered financial assistance to further their qualifications.

The customised three-year programme prepares candidates for careers in financial services by exposing them to different work environments within the group. The programme involves graduate students from universities and other institutions, many of them with masters' degrees, who are recruited on campuses. They then work within the company, moving through divisions and departments, learning about the structure and management of the group.

Every quarter, each graduate discusses their learnings with a committee. When an assignment within a specific discipline has been satisfactorily completed, the graduate then moves to the next step on their journey.

Due to prevailing circumstances, no candidates were appointed during 2021.

The bank ‘swap’ programme This cooperative programme involves other banks operating within SBG in Africa. Talented individuals are offered positions in other regions where they can experience different banking cultures.

Talent development programmes include:The graduate development programme. This comprehensive programme covers:

IT Credit Corporate and investment banking

Finance Retail Commercial banking



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Leadership identification programmeThis initiative aims to assess the performance of 100 managers across the group on an ongoing basis. During the process, a manager is given personal feedback on achievements by their line manager and advised on where improvements can be made. These sessions are valuable in identifying and resolving problems that may arise where there are people of all ages, from varying cultures, differing abilities and lengths of service with the group.

Authentic Women in Leadership An Authentic Women in Leadership workshop for women in senior positions took place in 2021. This, unlike many other sessions during the year, was led by a facilitator. The majority of the other sessions were online.

Other leadership modules were designed to enhance leadership capabilities and address particular areas that employees had flagged as issues during the annual culture survey.

Leadership developmentIn a rapidly evolving environment, the burden of managing falls squarely on the shoulders of senior managers, women in middle management and executives. Ensuring that these managers understand all changes and are resilient enough to guide the group requires ongoing development training.

In 2021, constraints imposed by the ongoing Covid pandemic saw investment in this arena reduced.

Since 2017, at least 174 people drawn from senior management, key talents and other functions have attended training sessions.



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Provide funding solutions for studentsEducation is an essential component in creating opportunities for Namibians. Without access to quality education at all levels, quality employment and self-development opportunities are limited. A well-educated population also means vibrant businesses and a thriving economy at a macro level.

The Standard Bank of Namibia Academic Excellence Awards These awards acknowledge the efforts of high school learners across Namibia. The ‘Top Three’ learners in the Grade 12 examinations in each of the country’s 14 regions are rewarded with the Top Student Award and receive N$5 000 each, while the first and second runners up received N$3 000, N$2 000, respectively.

The USAID Forum for African women educationalists in Namibia (FAWENA) FAWENA provides educational opportunities for deserving and talented Namibian girls and women. Supported since 2014, N$5.79 million was allocated to assist more than 500 girls in 14 regions for the duration of the project, which expires in 2022.

In 2021, our contributions have benefitted 70 female secondary school learners from disadvantaged backgrounds. The girls participating in the programme undergo a selection process led by specially trained teachers who monitor each girl’s progress.

Our objective is to help create opportunities for young people to become active participants in society and the economy through considered social investments in education. We achieve this through investments and partnerships that help identify and support learners and students at all levels.

Our programmes include:



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Since 2011, we have partnered with the Ministry of Education to encourage academic excellence at second school level. In 2021, we assisted with N$112 800 for secondary school girls in all the 14 regions benefitted. Each received N$3 000 for school uniforms, hostel fees, stationery, cosmetics and transport.

We have supported charity organisation, Let’s Unite, by donating stationery to 12 schools in a N$220 000 drive to assist parents in outlying, rural towns who are unable to buy these items for their children. The stationery items included note pads, colouring books, printing paper, maths' sets and calculators.

We supported Grade 1 learners by providing funding for school bags filled with pencils, colouring pencils, rulers, sharpeners and erasers as a welcome back to school pack. Additional educational items for grade one classrooms included posters to help children master the alphabet, numbers and shapes.

We sponsored N$300 000 towards the education of Namibia’s track stars, Christine Mboma and Beatrice Masilingi, in recognition and celebration of their achievements at the Tokyo Olympics which saw them being ranked number two and six in the world, respectively.

In support of the Ministry of Education’s endeavours to nurture the talent and potential of Namibian youth, we launched the Brighter Day campaign in partnership with volunteer counsellors in Rehoboth and Mariental, reaching over 300 learners and teachers from schools around the towns.

SOME OF OUR CSI PROGRAMMES:

SBN’s Namibia Students Financial Assistance Fund (NSFAF) was established in 1997. It assists Namibian students in furthering their studies and careers at approved higher educational institutions (vocational training, under- and postgraduate). The financial assistance is provided through loans, grants and scholarships. Since 2010, it has funded over 120 000 students and awarded 368 scholarships and special initiatives.

Standard Bank held its first national hockey development festival in November. Junior hockey players from 24 primary schools from five towns took part in the inaugural Standard Bank Junior Hockey National Festival in Windhoek.



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HEALTH



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Health

Health promotion and disease prevention assumed more significance in 2020 and throughout 2021 due to the ongoing Covid-19 pandemic. Our efforts to make a positive impact in this area involved taking steps to ensure the health and safety of our employees, our customers, addressing the impact of Covid-19 and contributing to broader health matters within Namibian society.

Our impact in 2021Interventions to promote our employees mental and physical wellbeing include:

Enabling them to work seamlessly from home by supplying the necessary support, data and secure links they needed to link into our system. By the end of 2021, 70% of our employees were still working from home

Ensuring that employees who needed to work onsite were protected through strict application of protocols addressing sanitising of workplaces, social distancing and supplying of gloves, masks and screens in branches and offices

Within branches, instituting all Covid protocols and ensuring that plans were in place to ensure service continuity if employees were required to self-isolate

Customers’ health was guarded by limiting numbers in branches, enforcing protocols and issuing sanitisers for all visitors.

Moving our employees from office environments and support functions to their homes



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Ongwediva MediparkOngwediva Medipark (OMP) is a state-of-the art private hospital in Namibia, that provides quality accessible and affordable healthcare to the community. OMP opened its doors in 2006. It has since established itself as a centre of excellence. The staff complement has grown from 250 in 2017 to 430 staff members, of whom 32 are medical specialists. Services provided include intensive care, paediatrics, maternity, neurosurgery, gynaecology, plastic surgery, cardiology, physiotherapy, psychology, opthamology and renal dialysis.

Standard Bank’s relationship with OMP began in 2013 with the provision of finance to enable expansion of the hospital. We have worked closely with OMP’s management in the years since to clearly understand and better meet their needs, and the needs of their patients and service providers. We’ve also gathered market insights on the local healthcare sector, and engaged with Namibia’s Health Council, medical aid schemes, pharmacies and other hospitals, to understand sector opportunities and challenges.

Financial solutions to support health care providers and the development of health-related infrastructureStandard Bank supports better health outcomes for Africa’s people by financing healthcare providers and the development of hospitals and other health-related infrastructure.

• Provided N$84 million to fund new hospital infrastructure, N$28 million to fund medical equipment, including credit and leasing options, and N$15 million overdraft facility for working capital

• Provided solutions to optimise income per bed through improvements to administration and operational efficiency. This has supported an increase in hospital beds from 80 in 2017 to 150 beds in 2021

• Worked with the hospital management and staff to provide specialised financial solutions for medical practitioners, including on-site visits from relationship bankers, to avoid clients having to visit the branch; convenient international banking, forex, and international payments (many of the specialists are from outside Namibia); tailored home loans with reduced deposit requirements; and equipment and vehicle finance. By helping these medical practitioners take care of their finances, we’re helping OMP retain their specialists, ensuring local communities have access to excellent care

• Provided specialised financial solutions for nurses and for enterprises servicing the OMP value chain

• Provided Financial Fitness Academy sessions for Medipark employees.

Since becoming OMP’s primary banker in 2017, we have:



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In broader society The private sector plays a critical role in supporting Covid-19 programmes. In addition to helping where aid was urgently needed, SBN continued to support our community health

programmes that are part of our ongoing CSI commitment.

Together with our partners, we assisted with crucial medical supplies, protective gear and food parcels to support communities.


Provided PPE to informal settlements

Assisted the Namibian government with disbursing the national emergency income grant

Continued our support of children who suffered birth deformities

Donated nine water tanks and bottles of hand sanitiserto communities living in informal settlements.

Donated three five-litre oxygen concentrators valued at N$63 000.

Nineteen families were left homeless when a fire razed their shacks in the DRC informal settlement in Swakopmund. We donated N$30 000 in food parcels, blankets, washing buckets and Covid-19 booster shots to innoculate the homeless victims of the blaze.

In partnership with the Motor Vehicle Accident (MVA) Fund, SBN launched Project 9682, the upgrade and renovation of the Katutura State Hospital’s emergency unit. The name draws inspiration from the MVA Fund’s mandate to provide emergency care for car crashes and it is the new MVA Fund accident response number.

We also



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REPORT TO SOCIETY 2021 - Standard Bank Namibia

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