Chairman of the Audit and Risk Committee’s Report

For the year ending 31 March 2015

I write my report with great pride given Trustco’s sterling 2015 results. With dedication and skill, management implemented a strategic reorganisation during the year, aiming to utilise synergies amongst senior management to create a level of strategic focus which bore the fruits we are presenting in this report.

Rising interest rates coupled with long periods of inflationary pressures have placed an economic toll on many in the financial industry. Consumer indebtedness remains high and varied attempts by the public and private sector to avoid the negative effects of this remain unsuccessful. Globally, falling oil and commodity prices place pressure on larger economies with even the great Chinese economy showing signs of slowing. The success of the group further provides positive contributions, not only to stakeholders, but also to the broader citizenry.

Closer to home, South Africa’s strikes and Eskom’s woes put a damper on the sub-Saharan economy. Namibia, to the contrary, shows solid economic growth and during the year inaugurated its third democratic president after a peaceful, democratic and credible election was held.


Over the past few years it has become evident that the old ‘tried-and-tested’ policies of yesteryear no longer suffice in this ever changing and increasingly globalised world. The Trustco board will thus continue to take a long-term view of the business and in this regard Trustco stands significantly transformed and well positioned to perform via its collection of product portfolios that were developed over the years.


The board recognises the interconnectivity between prosperity and sustainable growth and therefore maintains as a top priority improved relations with all stakeholders, including the new Government, capital providers, the local communities as well as employees. It is therefore with great pride that I report that Trustco took third place in Deloitte’s “Best Company To Work For” survey of 2014, both in Namibia and the Region, being a first-time participant in the survey.

The board views the management of environmental, social and corporate governance issues as an important business imperative and ensures compliance with recognised best practices in not only the group’s strategic outlook, but also in its daily operating activities.


Trustco remains committed to the spirit of economic transformation and endeavours to enhance its strategy with regards to this process. While current performance and incentive schemes already align executive performance with the creation of long-term shareholder value, Trustco has this year embarked upon two extraordinary long-term incentive schemes.

With a set of extraordinary targets to achieve extraordinary results, management and employees have all been set a high bar to reach in exchange for extraordinary bonuses in 2016 and beyond. This, the board believes, will incentivise staff to reach long-term targets sooner rather than later.

On the initiative of management, the group has initiated and implemented a plan where each and every employee will become a shareholder after just one year of service. Trustco has achieved an employee-shareholder alignment unparalleled in Namibia. To the best of my knowledge, no other company in Namibia can claim this achievement.


I’d like to thank the board for its tireless efforts during the year, as well as management who expeditiously implemented the resolutions of restructured group operations to ensure Trustco remains the vibrant hub of innovation that it is known for. Finally, the exceptional performance contained in this report would not have been possible if not for the dedication of Trustco’s faithful employees who worked tirelessly to ensure Trustco remains at the pinnacle of excellence.

ADV Raymond Heathcote SC
(Chairman of the board)

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