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The Namibia Stock Exchange (NSX) is now among the top five exchanges on the African continent by market capitalisation. The local bourse according to the Bank of Namibia has significantly grown over the years with an aggregate value of N$2.1 trillion. NSX’s planned launch of a bond trading system will further increase liquidity in the bond market.
The Namibia Stock Exchange (NSX) is now among the top five exchanges on the African continent by market capitalisation. The local bourse according to the Bank of Namibia has significantly grown over the years with an aggregate value of N$2.1 trillion. NSX’s planned launch of a bond trading system will further increase liquidity in the bond market. Bank of Namibia Governor Johannes !Gawaxab attributed the growth to both public and private sectors for playing a pivotal role in expanding the types of instruments on offer in local capital markets.
Namibia’s first Central Securities Depository to allow investors across the globe to participate in Namibia’s capital markets will soon be launched. Once registered, it will introduce better efficiency and transparency in the trading of Namibian securities while simultaneously reducing the associated risks. As an issuer, the State is further committed to leveraging technology to provide retail investment avenues that speak to the Namibian experience while fortifying defences against emerging financial risks.
The country’s public debt management approach is based on prudence; as a result, the majority of Namibia’s public debt is funded locally, minimising external vulnerabilities, supporting local financial markets, and fostering financial self-sufficiency,” he remarked. The strategy further enhances sovereign sway over the country’s debt management as it reduces dependency on policy actions taken by other countries or international financial institutions. As of August 2023, Namibia’s total public debt stood at N$146.5 billion, and N$109.8 billion (75%) of this is funded domestically.
According to the Official Monetary and Financial Institutions Forum’s (OMFIF) latest Africa Financial Markets Index, Namibia had the largest pension holdings per capita on the continent for the third consecutive year in 2021. At the end of March 2023, the country’s non-banking financial institutions sector assets stood at N$381.8 billion, of which total retirement fund assets amounted to N$216.7 billion (USD14.6 billion) with N$106.4 billion being held locally, providing a base to facilitate growth and innovation of the local capital market.
Gross Fixed Capital Formation (GFCF) is considered a meaningful indicator of future business activity, confidence, and economic growth. Notably, GFCF’s direct contribution to Namibian GDP fell from a high of 34% in 2014 to 14.5% by 2022, which likely explains why the Namibian economy has struggled to emulate the robust growth rates it experienced between 2010 and 2015 over much of the past seven years.
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In 2022, the largest contributing sectors to GFCF in Namibia were Mining and Quarrying (28.5%), Finance and Real Estate (18.6%), and Manufacturing (17.2%), where the three sectors collectively accounted for over a third of Namibia’s GDP. The Namibian Stock Exchange saw a total of N$609.6 million traded last year. This was the fifth-highest amount traded since 2012.
