THE acquisition of
Speaking at a media briefing in
"The proposed transaction does not raise any competition concerns. However, it raises a significant public interest concern in the form of employment losses," he said.
Fides is the first micro-finance bank established in
The bank received its provisional banking license in 2009 and its permanent license in 2010, with its transition from non-governmental organisation (NGO) to commercial bank.
"The approval was granted in terms of Section 54 of the Banking Institutions' Act, 1998 (Act No. 2 of 1998) as amended, and is effective from
Fides currently employs approximately 100 permanent employees and 23 trainees, who would be retrenched post-merger as it was submitted by the merging parties, Gaomab stated.
He said the commission resolved to approve the merger with the condition that at least 20 employees are retained or re-employed from the retrenched workforce within three months from the date of approval of the transaction.
"The commission also proposed that the merged undertaking makes available an amount of N$700 00 for the purpose of training retrenched employees. The indicated amount should translate into N$8 750 per employee who are subjected to retrenchment," he said.
Gaomab noted that
"Competition in the relevant market is not likely to be harmed as there are a number of competitors as well as three new entrants that have recently been awarded banking licenses by the
The bank currently has five branches in Oshakati, Oshikango, Ondangwa, Ongwediva and Outapi.
Fides opened its
Local media reported in February this year that Fides planned to downsize its activities in the capital as they were too costly to develop, and have not yielded the expected socio-economic returns.
The operations also proved to be economically unsustainable.
Its savings' portfolio also includes the deposits of 40 000 individuals.
Key to the new bank's expansion strategy will be the use of mobile banking and alternative service channels, combined with traditional infrastructure.
Small-and-medium enterprise (SME) lending will continue to be a priority for the bank, with the goal of nurturing and supporting local entrepreneurs.
Most Popular Stories
- Doctor Who Christmas Episode Begins Production
- HCL America Adding 1,200 IT Jobs
- Medical Mfg. Jobs Coming to Dayton
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- Longtime Unemployed to Get Help in Las Vegas
- SpaceX Aims for Predawn Launch on Saturday
- Women Key to Democratic Party: Clinton
- U.S. Chamber Caught Up in Tax Inversion Question
- Feds Won't Say How Many Border Crossers Jailed
- Christie Didn't Order Bridge Shut Down, Feds Say