Capricorn Group Financial Officer, Jaco Esterhuyse, believes that the company’s operations in Botswana and Zambia are primed for growth in the near future.
Bank Gaborone, a Capricorn unit, posted very solid results for the period ending 30 June 2018 by contributing 6 percent to the group’s profit after tax, compared to a 4 percent contribution in 2017.
The Zambia unit, Cavmont Bank, made a loss, resulting in management changes. The group is confident that the new team will help transform its fortunes in Zambia.
Capricorn currently gets 95 percent of its profit from its Namibian operations, with the group’s profit after tax increasing to N$934 million in 2018 compared to N$918 million in 2017, according to a 2018 Integrated Report.
Capricorn Group MD, Thinus Prinsloo, also believes that the Zambian operation has growth potential, especially with a population of around 2.5 million that is unbanked and operating on cash.
Prinsloo said rising copper prices are giving hope that the Zambian economy will recover thereby raising prospects for Covmont Bank, Capricorn’s subsidiary in Zambia.
In terms of Botswana, Esterhuyse said President Mokgweetsi Masisi appears to be business-minded and has lifted investment sentiments in that country.
Esterhuyse also expects Entrepo Holdings, in which Capricorn recently acquired a 55.5 percent stake, to contribute about 10-15 percent to the group’s profit in 2019.
Entrepo is a financial service entity focused on providing micro-lending, life insurance and credit protection products.
Prinsloo said the company was proud of the opportunity it presented the Namibian public to acquire shares and participate in the ownership of the group when it listed in 2013.
“We remain committed being connectors of positive change and creating opportunities for all our stakeholders to enjoy the benefits of the shared value we can generate,” Prinsloo said in the report.