Capricorn Investment Holdings (CIH)

The document outlines the regional expansion of Capricorn Investment Holdings (CIH) from Namibia into Botswana and Zambia, detailing the regulatory, fiscal, and infrastructural challenges encountered. Key barriers identified include the absence of double taxation agreements with Zambia, skill shortages in Namibia, and the high cost of compulsory IT system localisation. CIH advocates for a regional currency within SADC to reduce exchange rate volatility and suggests that Southern African countries should specialise in specific services to foster genuine regional integration.

• CIH expanded its operations beyond Namibia to overcome market saturation, acquiring a 44 percent share in Zambia's Cavmont Bank in 2007 and establishing Bank Gaborone in Botswana in 2004.
• Fiscal and regulatory barriers increase the cost of doing business, specifically the lack of a double taxation agreement between Namibia and Zambia, which contrasts with existing agreements Namibia holds with South Africa and Botswana.
• Namibia is perceived as having higher regulatory and economic policy uncertainty compared to Zambia and Botswana, with a notable shortage of graduates possessing skills in technology, risk and compliance, and investment banking.
• The requirement for compulsory localisation of IT systems for South African owned banks in Namibia resulted in costs of N$400 million per bank without providing clear benefits to customers.
• CIH suggests that adopting a regional currency within the Southern African Development Community (SADC) would reduce the costs and complexities associated with moving funds between different national currencies like the Nam dollar, Kwacha, and Pula.

APA

South African Institute of International Affairs (2013). Capricorn Investment Holdings (CIH). https://saiia.org.za/saiia-toolkit/capricorn-investment-holdings-cih/

Chicago

South African Institute of International Affairs. Capricorn Investment Holdings (CIH). 2013. https://saiia.org.za/saiia-toolkit/capricorn-investment-holdings-cih/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Capricorn Investment Holdings (CIH) |date=25 February 2013 |url=https://saiia.org.za/saiia-toolkit/capricorn-investment-holdings-cih/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2013capricorn, author = {{South African Institute of International Affairs}}, title = {{Capricorn Investment Holdings (CIH)}}, institution = {South African Institute of International Affairs}, year = {2013}, month = feb, url = {https://saiia.org.za/saiia-toolkit/capricorn-investment-holdings-cih/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }