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Capricorn Group material matters at a glance

Ethical leadership

(business and management)

Financial and cybercrime

Demand for specialist skills driving focused development, training and diversity

Fintech, insurtech and evolving digital assets

Credit risk management and mitigating losses due to bad debt

Meeting customer needs and expectations

Responding to a changing regulatory and operating context

Enhancing and optimising management and operational systems

 
 

STRATEGY AND MATERIAL MATTERS

 

Ethical Leadership

(business and management)

Ethical conduct is the foundation for a sustainable business. Ethical leadership means setting the tone from the top. The recent corruption scandal in the fishing industry highlighted the scale, complexity and widespread acceptance of unethical practices in Namibia. This is to the detriment of social, economic and environmental development of our society.

We want to contribute to eradicating corruption and fraud. Capricorn Group is committed to doing the right thing as defined by our Group Code of Ethics and Conduct Policy and the behaviours set out in The Capricorn Way. Our suppliers are required to adhere to the Suppliers’ Code of Conduct.

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

RELEVANT PRINCIPAL RISK

• People

• Compliance

• Reputation

• Operations

BOARD OVERSIGHT

• BARC

• BSEC

• Group board human resources (“HR”) committee

• Remuneration committee (“Remco”)

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Employees

Shareholders

Customers

Government and regulators

Strategic alliance partners

Media

 

Credit risk management and mitigating losses due to bad debt

The shock of the COVID-19 pandemic, on top of three years of prolonged economic stagnation in the region, drought, electricity supply constraints, low business confidence and rising unemployment, led to a substantial increase in credit risk and subsequent rise in non-performing loans and provisions for bad debt. This is despite economic stimulus and relief packages to support businesses, households and government service providers during lockdown periods. Relief measures included interest rate decreases and loan repayment moratoria (repayment holidays).

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

RELEVANT PRINCIPAL RISK

• Credit

• Capital

• Liquidity

• Market

• Finance and tax

BOARD OVERSIGHT

• BARC

• BCC

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Shareholders

Customers

Government and regulators

 

Financial and cybercrime

Financial crime refers to crimes committed with the purpose of converting ownership of property in an unlawful manner for someone’s own personal benefit. Cybercrime on the other hand refers to a method of committing crime using a computer and network for one or more purposes including financial crime. Money laundering is one of the most serious forms of financial crime.

An increase in cyber-related crimes was evident during the COVID-19 pandemic as part of a growing threat internationally, due to increased use of personal devices and remote working infrastructure which created or increased certain vulnerabilities. Continuous assessment, monitoring and security improvements are required to protect data and assets.

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

RELEVANT PRINCIPAL RISK

• Technology

• Reputation

• Operations

• Compliance

• People

BOARD OVERSIGHT

• Group board information technology committee (“GBITC”)

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Customers

Government and regulators

Shareholders

 

Meeting customer needs and expectations

Customer-centricity means delivering the brand promise to customers across every interaction and touchpoint. It requires unique and differentiating customer experiences. We have to focus on the problems we can solve for our customers, how we can deliver value and retain them for life. The availability and use of data management, statistics and analytical modelling are essential to understand needs. Customer complaints are a valuable source to uncover expectations and reveal improvement opportunities.

We monitor all social and media channels as part of reputation risk management, and to inform relevant customer initiatives, making sure we invest in the areas that have a real impact on improving customer experiences.

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

RELEVANT PRINCIPAL RISK

• Reputation

• Strategic

• Operations

BOARD OVERSIGHT

• BSEC

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Customers

Government and regulators

Shareholders

Communities

Strategic alliance partners

 

Demand for specialist skills driving focused development, training and diversity

We recognise the value of building a positive employer brand to instil brand pride and awareness among our employees.

The Group prioritises employing the right people in the right positions and also invest in acquiring, building and developing talent. However, our priority is to leverage and develop internal talent for future needs. We recognise the limitation in relying only on the external market to fill a growing skills gap.

In an attempt to keep our employee skill sets relevant, we partnered with the University of Stellenbosch for tailor-made management programmes. Thirty employees are currently enrolled for the New Manager Development Programme, and 30 employees have completed the Manager Development Programme.

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

RELEVANT PRINCIPAL RISK

• People

• Compliance

• Reputation

BOARD OVERSIGHT

• Group board HR committee Remco

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Employees

Shareholders

Communities

 

Responding to a changing regulatory and operating context

The COVID-19 pandemic dominated our operating context and regulatory landscape during the last six months of the financial year. Government and other stakeholders undertook several interventions to soften the impact. We provide a detailed economic overview on page 41, and Capricorn Group’s responses are detailed throughout this report.

Regulatory changes in the region are shaped by local socio-political circumstances and government priorities. We support the intent to protect the integrity and stability of the regional financial systems while limiting potential complexity and inefficiencies in business processes. These can drive up cost and impact customers who do not necessarily always understand the need and purpose of regulations.

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

• Compete through strategic relationships and partnerships

RELEVANT PRINCIPAL RISK

• Legal

• Compliance

• Strategic

• Reputation

• Operations

• Finance and tax

BOARD OVERSIGHT

• BARC

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Customers

Government and regulators

Shareholders

Media

 

Fintech, insurtech and evolving digital assets

The interplay between digital, data and customers is disrupting conventional banking and transactional models. New players design flexible and dynamic solutions based on new financing platforms, open banking and cloud-based products and services. We address this through strategic initiatives that focus on transforming our existing entities and explore new digital growth opportunities.

We have a range of projects in ecommerce, distribution, payments solutions, digital banking and biometrics in different phases towards launching. A highlight this year was the introduction of SPENN in Zambia, as profiled in the Group CEO’s report.

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

• Compete through strategic relationships and partnerships

• Target technological/borderless/cyber opportunities

RELEVANT PRINCIPAL RISK

• Technology

• Operations

• Reputation

BOARD OVERSIGHT

• GBITC

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Customers

Government and regulators

Shareholders

Strategic alliance partners

 

Enhancing and optimising management and operational systems

Operational excellence is a key competitive choice for the Group. It can enhance internal effectiveness, security and process optimisation – by doing things faster and more cost-effectively, reducing errors and ultimately improving the quality of customer experiences.

We created eight delivery platforms and adopted the Agile and Six Sigma methodologies to assist us on our journey towards operational excellence.

RELATED STRATEGIC CHOICES

• Building our foundation

• Win through operational excellence

RELEVANT PRINCIPAL RISK

• Technology

• Operations

• People

BOARD OVERSIGHT

• BARC

STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER

Customers

Government and regulators

Shareholders