Although the Namibian Stock Exchange (NSX) has enjoyed a solo ride in the local stock market for years, it appreciates the prospect of Namibia’s second stock exchange, NamFiN-X.
NSX chief director, Tiaan Bazuin says, “We welcome competition as it is only in such an environment that its value and contribution to the Namibian economy can be assessed and appreciated. We believe we have served the Namibian market well by building a local industry of world-class performance.”
In May 2012, NamFin-X applied for a licence to operate and submitted it to the Registrar of Stock Exchanges as per of the Stock Exchanges Control Act. However, it is yet to be launched on the market.
According to Namibia Financial Institutions Supervisory Authority (Namfisa) financial analyst, John Siseho, NamFin-X’s launch date is yet to be set for it to start operating on the market.
“While the application was approved by the Ministry of Finance, the application is still being processed by us (Namfisa),” Siseho says.
Finance Minister, Saara Kuugongelwa-Amadhila in September 2012, approved for an association of 10 people to make an application for and to be issued with a license to operate the mooted stock exchange.
NSX is one of only three exchanges in Southern African Development Community (Sadc) that does not require government funding; the other two are the Johannesburg Stock Exchange (JSE) and the Stock Exchange of Mauritius.
Bazuin also points out NSX is a 100% Namibian not-for-profit association, with 100% Namibian board and 100% Namibian employees. The establishment of the NSX, which was a major step in the development of the local financial sector, has been an initiative of Namibian businesses since 1992, Bazuin adds.
“Its main roles have always been to be an avenue for Namibian businesses to raise capital, be a platform for price discovery and a conduit to release company information. Our stockbrokers are also 100% Namibian. All trades are transacted through Namibian Brokers,” he explains.
But NamFin-X comes in to not only provide sources of funds for local businesses but also to provide access to the expertise and experiences of investment companies, the investment community and a nominated advisor.
Their continued drive to create new platforms to raise capital, especially with the latest addition, the Over-the-Counter trading platform, Bazuin states, creates new trading opportunities for entities that do not meet the requirements of listing.
“On the main board, the hugely successful listing of Bank Windhoek Holdings should serve as a benchmark to demonstrate the value that can be unlocked in a public offering and listing.”