By: Nghiinomenwa-vali Hangala
It has been noted that the Namibian capital markets can be expanded further to deliver for the country.
Capital markets are platforms through which long-term funds are raised and invested.
They connect those who have capital (savings) with those who need capital or want to borrow to grow businesses, build infrastructure and create jobs, or buy equity.
According to the Namibia Financial Institutions Supervisory Authority (NAMFISA), Namibia stands at a pivotal moment in the evolution of its financial sector.
Over the years, the banking sector has been dominating the financial landscape; however, capital markets are gradually emerging as an important engine for raising capital, infrastructure financing, wealth creation and financial inclusion.
The banks still dominate some of the biggest financing arrangements, including De Beers vessels and government Eurobond repayments.
However, a notable movement has been observed in local listings at the country’s securities exchange board (Namibia Securities Exchange), especially at the Development Capital Board.
The Development Board currently has 8 companies (mining companies) raising capital and one company at the capital pool level.
As of Monday this week, the total market capitalisation was N$38.7 billion (number of shares issued multiplied by share prices).
In terms of the main board (listing) for stock trading, it is still dominated by the banking and financial-related entities.
As of this week, the main board listing of local companies stands at 12, of which four are banking related, two are telecommunications, and two are asset managers.
Other listings are from retailers, property, and energy.
As of Monday, the market capitalisation of the local listing (all shares issued) stood at N$57.9 billion.
In terms of the bond market, it is dominated by government bonds, with only a few private sector entities issuing corporate bonds (raising capital through the Securities Exchange).
As of Monday, listed government bonds (floating) were valued at N$110.7 billion.
As for the state-owned enterprise, only the Development Bank of Namibia has an active listing of N$130 million; Nampower has also registered a bond programme of N$5 million, with the intention to use the board to access capital.
The commercial banks are the second largest users of the Namibia Securities Exchange (NSX), with N$4.7 billion corporates bonds listed, while the non-banking corporates have listed N$1.6 billion.
Capital markets in Namibia involve a broad ecosystem of participants including government, regulators, institutional investors (pension funds, insurance companies, asset managers), securities exchanges, stockbrokers, central securities depository, issuers of securities (listed companies, private companies, public entities) and individual investors.
The Bank of Namibia, the Namibia Securities Exchange (NSX), pension funds and insurance companies, investment managers, corporate and individual investors also play a significant role in mobilising domestic savings into productive investments.
In terms of regulation and supervision, NAMFISA overseas exchanges, stockbrokers, investment managers, collective investment schemes, linked investment service providers and other market participants to ensure fairness, transparency, investor protection and a stable financial system.
Unlike traditional bank lending, capital markets provide businesses and governments, as main users of capital markets, with access to long-term funding while offering both corporate and individual investors opportunities for wealth creation and portfolio diversification.
According to Namfisa, the question is no longer whether Namibia needs a deeper capital market, but rather how quickly the country can unlock its full potential.
The regulator explained that the strategic importance of Namibia’s capital markets has grown significantly over the past decade as the country continues to seek new sources of economic growth amid fiscal pressures and constrained public finances.
Recent regulatory reforms, including the implementation of the Financial Institutions and Markets Act (FIMA) and approval of the Namibia Financial Sector Transformation Strategy 2025–2035, are aimed at modernising the sector, broadening and deepening the financial markets and aligning Namibia with international best practice standards.
“These reforms are expected to improve market efficiency, strengthen investor confidence, support financial innovation and ensure stability,” the regulator wrote.
NAMFISA explained that capital raised through the market finances infrastructure projects, supports corporate expansion, creates employment opportunities, and channels retirement savings into productive sectors of the economy.
Moreover, the capital markets also provide ordinary Namibians with opportunities to participate in economic growth through pension funds, unit trusts (including money market funds) and listed investments, and insurance-linked investment products.
Collective investment schemes in Namibia managed assets worth approximately N$123.4 billion by the end of 2025.
Of these assets, 56.5% were invested domestically, demonstrating the role that local capital plays in financing Namibia’s economy.
Namibia is a nation with substantial institutional savings, particularly within pension funds and insurance companies.
However, according to Namfisa, the challenge is not a lack of capital, but rather creating sufficient investable opportunities domestically.
Adding that if the country can deepen its capital market and improve its liquidity, it can reduce dependence on foreign borrowing, support infrastructure financing and enable SMEs and growing businesses to access capital.
To increase the supply of investable assets, more companies need to consider listing on the Namibia Securities Exchange, while government and state-owned enterprises can expand the use of bond markets to finance infrastructure and unlock SME and start-up capital.
The regulator has suggested various strategies the country needs to pursue to grow its capital market.
The first is to expand investor education, which includes financial literacy, so more Namibians understand the benefits and risks of investing beyond traditional savings products.
Secondly, is the acceleration of digital transformation. This involves the introduction of a Central Securities Depository and digital market infrastructure to make investing more accessible, efficient, and transparent, and bring financial stability.
At the same time, continuously deepening the market by increasing the efficiency, depth (e.g. credit intermediation and market turnover), breadth (e.g. range of markets and instruments), and reach (e.g. access) of financial systems.
Namibia’s broader capital market ecosystem is valued at approximately N$338.2 billion, while the entire non-bank financial sector has grown to more than N$552.8 billion in assets.
erastus@thevillager.com.na
